The Mumbai real estate market has witnessed a consistent preference for properties priced up to ₹2 crore, with this segment accounting for nearly 80% of all property transactions annually, according to data from the Maharashtra government collated by Knight Frank India. This trend highlights the enduring appeal of this price range in India’s costliest residential market.
Market Dynamics
In 2023, Mumbai recorded 1.14 lakh property registrations, with over 94,000 or 82% of these falling in the up to ₹2 crore segment. Similarly, 2024 saw 1.28 lakh property registrations, a 12% increase from the previous year, with 78% of transactions in the same price bracket. Properties priced between ₹2 crore and ₹5 crore accounted for 15%, while those above ₹5 crore represented just 5% of total transactions.
The demand is driven by a mix of first-time buyers seeking 1 BHK homes and those upgrading to 2 BHK apartments in suburban Mumbai. The city’s competitive real estate market offers apartments priced from ₹20,000 per sq ft to over ₹1.5 lakh per sq ft, making the ₹2 crore range a practical choice for many.
Developer Insights
Developers catering to this segment attribute its popularity to its balance of affordability and aspirations.
“The ₹2 crore range strikes a perfect balance between comfort and affordability, attracting a wide spectrum of buyers,” said Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO Maharashtra. “At Nahar Group, we focus on this segment with projects like Nahar Amaryllis in Chandivali, offering quality construction and modern amenities to homebuyers in western and central suburbs.”
Factors Driving Demand
Vivek Rathi, National Director of Research at Knight Frank India, explains that properties in this segment appeal to middle and upper-middle-income groups, representing a significant portion of Mumbai’s population.
“This price range constitutes the backbone of Mumbai’s housing market, catering to first-time and upgrade buyers alike. It is supported by government incentives, such as reduced stamp duty for women homebuyers, and accessible home loan options,” Rathi said.
Local brokers also highlight the traction for up to ₹2 crore properties in areas like Borivali, Kandivali, Mulund, Bhandup, and Vikhroli, where homebuyers can find options ranging from studio apartments priced at ₹50–₹60 lakh to compact 2 BHKs at ₹1.5–₹2 crore.
Affordability Matters
For many buyers, affordability is key. Real estate consultant Dhiren Vakil explains that individuals earning ₹12–₹24 lakh annually can typically afford home loans ranging from ₹50 lakh to ₹1 crore, making this segment viable for them.
“Most buyers in this income bracket save around ₹20–₹50 lakh, which influences their preference for properties in the ₹50 lakh to ₹2 crore range. This makes studio apartments and 1 BHKs the most sought-after options,” Vakil added.