The real estate market in Mumbai saw a significant decline in property sales during September 2024. This decrease in transactions was attributed to the ongoing Shraadh period, which is traditionally considered inauspicious for making large purchases, including real estate investments. This cultural factor has had a measurable impact on the real estate sector, especially in a city like Mumbai, where property demand generally remains high throughout the year.
The Shraadh period, observed by many Hindus, is a 16-day phase dedicated to paying homage to ancestors. During this time, many people refrain from engaging in significant activities such as weddings, property purchases, or even starting new ventures. This year, Shraadh began on September 18 and ended on October 3, creating a clear window of reduced activity in the property market.
In September 2024, Mumbai recorded just over 9,000 property registrations, a drop from both the previous month and the same month the previous year. This marks a sharp contrast from August 2024, when 11,631 properties were registered, and from September 2023, which saw 10,694 registrations. This year-on-year decline highlights the influence of cultural beliefs on consumer behavior in the real estate market.
The sharp drop in registrations in September is also notable because it is the first time since November 2023 that property registrations in Mumbai have fallen below 10,000 units. This is a striking statistic, given that throughout most of 2024, registrations remained consistently above 11,000 units, except for January. Of the total property registrations in September, 80% were for residential units, indicating that the residential market continues to dominate the city’s real estate sector.
Despite the slump in September, the overall performance of the Mumbai real estate market in 2024 has been positive. Property registrations for the first nine months of the year have shown a 12% increase compared to the same period in 2023, with more than 100,000 units registered. This cumulative growth reflects the underlying demand for property in Mumbai, driven by factors such as urbanization, economic growth, and increasing disposable incomes among the city’s residents.
The decline in sales during Shraadh is a temporary disruption rather than an indication of long-term market trends. Historically, property sales tend to pick up in the months following Shraadh, as buyers look to make purchases during the festive season, which is considered auspicious. October and November are typically strong months for the real estate market in India, coinciding with festivals such as Navratri, Diwali, and Dussehra.
Another notable trend in Mumbai’s real estate market is the increasing demand for high-value properties. According to property consultant Knight Frank India, over 40% of the property transactions in Mumbai in 2024 involved homes priced at ₹1 crore and above. This trend has been observed over the past two years, indicating a shift in demand towards premium housing.
The growing demand for high-value properties can be attributed to several factors. First, Mumbai’s elite class continues to grow, leading to greater demand for luxury homes. Additionally, the city’s limited land availability means that new developments are often priced at a premium, especially in sought-after neighborhoods. Finally, the increasing availability of home loans at favorable interest rates has made it easier for buyers to invest in high-value properties.
### Demand for Mid-Sized Homes
While demand for premium homes is on the rise, there is also strong demand for mid-sized residential units in Mumbai. More than half of the property registrations in September were for homes ranging in size from 500 to 1,000 square feet. This size bracket is particularly popular among middle-income buyers, who are looking for affordable yet comfortable housing options in a city known for its high property prices.
Interestingly, there has been a noticeable uptick in demand for larger homes, particularly those between 1,000 and 2,000 square feet. This shift may be driven by changing lifestyle preferences, as more people look for spacious homes that can accommodate work-from-home setups, provide room for growing families, or simply offer a higher standard of living. The COVID-19 pandemic has also played a role in this trend, as it led many individuals to prioritize larger living spaces.
The Shraadh period had a clear dampening effect on property sales in Mumbai in September 2024, with registrations falling below 10,000 for the first time in nearly a year. However, the overall performance of the market remains positive, and there is optimism that sales will pick up in the coming months as the festive season approaches.
