Is Mumbai's growing housing supply leading to price moderation? Netizens weigh in
Mumbai Real Estate: Netizens discuss how job losses, AI adoption, and redevelopment projects have contributed to rising housing inventory and moderating prices
A Reddit post has sparked renewed discussion on whether Mumbai’s real estate prices have stagnated due to factors like job losses in tech and finance, the rising adoption of artificial intelligence, and an increasing number of redevelopment projects, all contributing to a surge in housing inventory.
Users suggest that supply is outpacing demand, prompting developers to offer flexible payment plans, reduced prices, and even indirect discounts such as waived floor rise charges or stamp duty.
"The market is down, layoffs are happening, and AI is changing the job landscape. At the same time, redevelopment projects across Mumbai are on the rise. As a result, both builders and individual sellers are offering discounts, selling at lower prices than before, and coming up with flexible payment plans to attract buyers," the user wrote.
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Are prices more or less stagnant in Mumbai’s suburbs?
One Reddit post noted that property prices in Mumbai's suburbs have remained flat since 2023. “The prices have been more or less stagnant since 2023, at least in the suburbs. I visited a project in Goregaon (ready-to-move-in) in 2023, the developer was quoting ₹38,500 per square foot which I finally bought in February this year at ₹38,300 per square feet,” the post said, reflecting an overall stagnation in that segment.
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Here’s what experts have to say about Mumbai’s real estate market
Real estate experts have said that Mumbai’s real estate market shows signs of moderation, and prospective buyers are now better positioned to negotiate property prices. To stimulate demand, developers are increasingly offering subvention schemes—also known as buy now, pay later, or flexible payment plans—which allow homebuyers to pay in instalments.
According to Divyesh Doshi, director at Kinjal Group in Mumbai, areas in the Western Suburbs like Andheri, Bandra, and Malad, as well as the Eastern Suburbs including Powai and Ghatkopar, continue to see demand for affordable studio apartments. These areas are popular among younger buyers because of their proximity to colleges, entertainment zones, and strong public transport connectivity.
Real estate consultants say buyers with a budget of ₹50 lakh still have several options, especially in the extended suburbs. A 1 BHK apartment can be comfortably purchased in Mira Road, Vasai, Virar, Thane, Kalyan, Dombivli, and Panvel.
Bharat Rathod, a Navi Mumbai-based property consultant, added that for the same budget, compact 2 BHK units are also available in areas like Titwala, Ambernath, Karjat, and Neral—regions often referred to as “Mumbai 3.0.” He also noted that the upcoming Navi Mumbai International Airport will likely boost real estate prices within a 30 km radius, where property rates are still within reach for first-time buyers.
Also Read: Does redevelopment of old buildings impact housing prices and rentals in Mumbai?
Redevelopment projects impacting rentals, capital values
A Reddit post has said with many old buildings being pulled down to make way for new high-rises, the housing supply is increasing, but these units often come at a premium. Buyers looking for affordable options still struggle to find quality homes in central locations within budget.
Mumbai’s skyline is changing rapidly, and many now compare its vertical growth to New York's. Redevelopment plays a major role in this transformation, with more old buildings being torn down to make way for high-rises. Even though the city saw a major jump in housing supply after the pandemic, developers continue to take up redevelopment projects quickly.
Real estate experts say this redevelopment wave pushes up property prices and rents. Once an old building is redeveloped, the cost of an apartment can go up by 40–50%. For example, a flat priced at ₹1 crore before redevelopment could cost anywhere between ₹1.4 crore and ₹1.6 crore afterward, often with a larger carpet area and modern amenities.
Rents have also surged since COVID-19, partly because of this redevelopment-led demand. Experts say that tenants are willing to pay more as new, better-quality homes enter the market in central and suburban locations, pushing rental yields higher.
Rents are on the rise in areas like Chembur and Mulund. Chembur, for instance, saw a 4% jump in Q1 2024, with average monthly rents climbing to ₹62,500 from ₹60,000 in Q4 2023, according to data from ANAROCK.
While redevelopment gives Mumbai a more modern look, it's also reshaping the city’s real estate economics—with buyers and renters feeling the impact.
