A new research report has revealed that 29% of homes sold in Greater Mumbai are priced above ₹2 crore, underscoring the growing affordability challenges in one of India’s most high-demand real estate markets. The report, unveiled at the Excelerate 3.0 event, was conducted by 1 Finance in collaboration with NAREDCO Maharashtra NextGen as the Research Partner.
The event, which brought together key industry leaders, also highlighted key insights about Greater Mumbai’s real estate landscape, including pricing trends, transaction volumes, and inventory levels. The research points to the significant impact of economic shifts, regulatory changes, and evolving consumer preferences on the region’s real estate dynamics, with affordability emerging as a key concern.
Key Findings from the Report:
- The average price per square foot (PSF) in Greater Mumbai stands at ₹32,150.
- 29% of homes sold are priced above ₹2 crore, reflecting the rise in luxury and high-end property transactions.
- Affordability in Greater Mumbai is the lowest among major Indian cities for the affluent-middle class.
Prashant Sharma, President of NAREDCO Maharashtra, highlighted the urgency for regulatory reforms, calling for the rationalization of premiums and streamlining of approval processes to address market challenges. “To succeed, we need strong collaboration between the public and private sectors,” he emphasized, noting NAREDCO Maharashtra’s commitment to affordable housing initiatives.
The report also highlights that, despite affordability concerns, real estate remains a robust asset class, delivering an average return of 12% over the past decade—comparable to gold and outperforming debt investments.
Keval Bhanushali, Co-founder & CEO of 1 Finance, stressed the importance of integrating real estate advisory into India’s financial planning ecosystem. “This report is a crucial step toward establishing real estate as a legitimate investment class alongside other traditional options,” he said, adding that the findings offer valuable insights for homeowners, developers, and policymakers alike.
Ridham Gada, President of NAREDCO Maharashtra NextGen, called for a collaborative approach between developers, policymakers, and financial institutions to address the affordability crisis. He emphasized the need for innovation and regulatory reforms to ensure accessible homeownership in Greater Mumbai.
The Path Forward
The research makes it clear that affordability in Greater Mumbai is a major concern that requires immediate attention. To address these challenges, the report advocates for long-term urban planning, sustainable development policies, and collaborative efforts between the public and private sectors. These steps are essential to ensuring that homeownership remains attainable for residents, even as Mumbai continues to grow as a global metropolis.
As Mumbai’s real estate market evolves, the findings from this research provide a critical roadmap for tackling the city’s housing issues while promoting inclusive growth and sustainability.
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