BRIMMING with POTENTIAL
The western region market has evolved and become one of the most developed markets in Indian real estate sector. But this doesn’t stop the market’s scope for further growth opportunities. Construction Times explores the new opportunities for real estate growth in the western market.
The Indian real estate market has seen a significant growth in the recent past. The residential real estate market is experiencing a growth momentum with new project announcements and executions. The overall economic growth is fuelling the demand for more commercial spaces across the country. When it comes to the western region of India, the real estate projects are flourishing in the region to become one of the most happening markets in the country. While Mumbai has evolved and erected, markets such as Pune and Ahmedabad are making significant headway in commercial as well as residential segments. While Mumbai is seeing a lot of redevelopment activities, markets of Pune, Ahmedabad and tier-3 cities are witnessing development of new properties in residential and commercial markets.
Emerging market trends
According to Atul Bohra, Group CEO, Kolte-Patil Developers Ltd, the real estate market in India's western region, especially in Mumbai and Pune, is experiencing robust growth driven by strong sales, infrastructure development, and evolving customer preferences. Mumbai’s residential sales (units) increased by a strong 16% in H1 2024 YoY, while Pune saw a 13% rise in sales (units) in H1 2024 compared to the same period in 2023.
The luxury real estate sector is witnessing strong growth, with Mumbai recording an 8% increase in sales of homes priced at Rs. 10 crore and above, reaching Rs. 12,300 crore in the first half of 2024. Pune has seen a dramatic surge in luxury housing sales (each unit costing Rs. 4 crore and above) with 1,100 units sold from January to June 2024 marking a growth of 450% YoY.
Bhavik Bhandari, Chief Sales & Marketing Officer, Ashwin Sheth Group, says, “The real estate market in India’s western region is thriving, continuing its upward trajectory despite consecutive interest rate hikes over the past year.” According to him, a notable trend is the sharp increase in demand for luxury homes, which has surged from 16% in 2018 to an impressive 34% in 2023.
The real estate market in the western region of India has undergone a significant shift across both residential and commercial segments after the Covid era, driven by evolving demands and emerging trends. Ameya Inderkumar Jain, MD, Kumar Properties Lifespaces, elaborates, “In the residential sector, there is a noticeable trend toward larger homes as buyers prioritize spacious layouts that can accommodate work-from-home setups and integrated amenities. This demand for premium housing has surged, especially in cities like Pune and Mumbai, where buyers are increasingly seeking quality living spaces in well-connected areas that offer a seamless blend of comfort, convenience, and lifestyle appeal.”
Demand drivers
According to Bhavesh Shah, Joint Managing Director, Today Global Developers, the demand in both the residential and commercial segments of the MMR region is reflecting a clear trend toward luxury and space. “In the residential market, the luxury home segment continues to thrive, with areas like Mulund and Navi Mumbai exceeding expectations. Navi Mumbai, in particular, has emerged as a prime destination for luxury homebuyers. Panvel, for instance, offers spacious homes with unmatched connectivity, appealing to those seeking convenience without sacrificing space. Meanwhile, Upper Kharghar is attracting buyers with its serene landscapes and scenic views, making it a highly sought-after location for those prioritising a blend of natural beauty and urban living,” he adds.
Redevelopment of aged buildings is another emerging demand driver for western region. The Mumbai real estate market is witnessing significant surge driven by redevelopment initiatives. The redevelopment market in Mumbai and the MMR region is steadily gaining momentum, largely driven by the growing need to modernise aging infrastructure and improve living standards. Many buildings, particularly in South Mumbai and other older parts of the city, are over 30 years old, with some deemed unsafe by the Municipal Corporation of Greater Mumbai (MCGM). This has opened up immense opportunities for redevelopment, transforming these aging structures into modern, sustainable, and more efficient living spaces, according to Bhandari. However, while the market holds great potential, the redevelopment process is often complicated, heavily relying on navigating complex approval procedures and securing consensus from various stakeholders, according to Shah.
“Cities like Ahmedabad, Rajkot, and Vadodara are transitioning towards modern developments to cater to both residential and commercial needs as more companies establish global capability centres (GCCs) in these areas,” says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
Growth opportunities
The future of the real estate market in the western region is brimming with potential. According to Jain, the market in the western region, particularly in Pune, presents substantial growth opportunities, driven by factors such as rapid urbanization, infrastructure development, and the influx of IT and manufacturing sectors. The demand for both residential and commercial spaces is anticipated to increase, especially with ongoing improvements in metro connectivity, new highways, and smart city initiatives.
