Diwali 2024 Fuels Unprecedented Property Boom in Mumbai’s Real Estate Market

Mumbai, India’s financial and economic powerhouse, has yet again demonstrated its unyielding strength in the real estate market, with Diwali 2024 setting new records for property registrations. Known for its role as the country’s richest city, contributing a staggering $310 billion to India’s GDP, Mumbai’s property sector has long been a key driver of its economic prosperity. This year’s festive season witnessed a historic surge, marking an all-time high in property registrations and revenue, underscoring the city’s unwavering appeal as a top investment destination.

In October 2024, a total of 11,861 properties were registered, a remarkable 21% increase over the previous year’s figure of 9,736 units. This surge in activity generated an impressive ₹1,081 crore in revenue, marking a 52% growth from ₹712 crore in Diwali 2023. These numbers reflect the continued momentum in Mumbai’s property market, with residential properties making up about 80% of the registrations, highlighting Mumbai’s dominance in the housing investment space. Mumbai’s residential real estate market remains the focal point of this growth. The average property price has now crossed ₹1.66 crore, reflecting the city’s persistent rise in property value, in line with an annual increase of nearly 8% in the cost of living. Despite the surge in property prices, Mumbai’s real estate market continues to attract both domestic and international buyers, with the city maintaining its position as a magnet for wealth creation.

The data further reveals that the total number of property registrations across Mumbai’s Metropolitan Region (MMR) has crossed a significant threshold of 1.15 lakh in the first ten months of 2024, pulling in an extraordinary ₹10,000 crore in revenue. This trend positions the current festive quarter (October to December) to outperform previous periods, even in light of rising property prices. The optimism is palpable, as many see property not just as a home but as an essential investment in a thriving city. The combination of Dussehra and Diwali festivals in October 2024 was a key driver of the recent surge in property transactions. In a city where home buying during festivals is considered auspicious, this year’s alignment of these two significant occasions fuelled the property boom. The favourable timing encouraged prospective buyers to make their investments, further propelling the upward trajectory of the real estate market. CREDAI-MCHI anticipates that this convergence will continue to stimulate activity in future festive quarters.

Mumbai’s property market is not just driven by high-net-worth individuals but also by an increasing number of millionaires. Since 2020, the number of millionaires in Mumbai has risen by nearly 78%, from 217 to 386, a trend that further reinforces the city’s status as a hub of wealth creation. With such dynamic wealth generation, the real estate sector in Mumbai remains a key asset class, attracting investment from across income brackets. Amidst this growth, sustainability is an emerging focus. As property prices continue to soar, there is a growing recognition of the need for sustainable development practices. From eco-friendly building materials to energy-efficient designs, Mumbai’s real estate developers are increasingly aligning their projects with green standards. This trend not only addresses the city’s environmental concerns but also resonates with the growing demand for responsible investment. As Mumbai continues to grow, CREDAI-MCHI remains committed to advocating for policies that support affordable housing, urban infrastructure development, and sustainable practices. The city’s future lies in balanced, inclusive growth that meets both economic and environmental goals.