Home prices in Thane have experienced a significant surge, with a 46% increase over the past three years. The majority of the new housing supply consists of 2BHK properties.
Thane, a city in the Mumbai Metropolitan Region (MMR), has emerged as a significant player in the residential real estate market. Over the past few years, the city has witnessed a remarkable growth in its residential prices and new supply, making it an unexpected driver of real estate growth within the wider MMR.
According to a report titled "Thane: The Rising Star of MMR Real Estate," the average residential prices in Thane have seen a 46% increase in three years, from INR 13,550/sq. ft. in Q2 2022 to INR 19,800/sq. ft. in Q2 2025. This growth is primarily driven by infrastructure progress, buyer demand for affordable luxury housing, and strong sales growth in well-connected corridors.
Panchpakhadi and Naupada in Thane Central, Pokhran Road, Majiwada-Balkum, Kolshet Road, and Kasarvadavali are the top five micro-markets based on maximum new supply. In FY 2020 to FY 2025, a total of 65,800 units were launched in Thane, with around 44% of the residential supply falling in the INR 80 lakh to INR 1.6 Cr. budget segment.
The demand for under-construction homes in Thane outperforms ready-to-move-in units in 2025. The city offers luxury homes at relatively affordable prices compared to Mumbai's prime markets. For instance, the cost of a 2BHK home with an average carpet area of 650 sq. ft. in Thane is approximately INR 1.25 Cr, while in Mumbai's central suburbs it is around INR 2.11 Cr, and in the western suburbs, it goes as high as INR 2.36 Cr. Thane is at least 78% more affordable than suburban Mumbai for 2BHK homes.
The steady capital values growth in Thane is largely due to infrastructure upgrades that have sparked homebuyer interest. Between FY 2020 and FY 2025, the new housing supply in Thane grew by almost 103% in FY 2023 compared to FY 2020. This growth can be attributed to the rapid infrastructure upgrades that have significantly enhanced connectivity and accessibility in Thane.
Residential absorption in Thane rose by 78% to 19,600 units from FY 2020 to FY 2024. In Q1FY 2026, Thane saw approximately 3,130 residential units sold, while new supply stood at 2,910 units. The city's housing market is characterized by a strong market inclination towards smaller residential units. Approximately 45% of the overall new supply in this period consists of 2BHKs, followed by 42% of 1BHKs.
Thane's real estate growth is assured due to large-scale planned and ongoing infrastructure enhancements worth INR 59,000 Cr. The expansion and growth along key corridors such as Ghodbunder Road have contributed to the ongoing real estate revolution. Ghodbunder Road has become an affordable housing corridor showing a 28.1% year-on-year increase in residential sales agreements.
In summary, Thane's real estate boom is primarily driven by infrastructure progress, buyer demand for affordable luxury housing, and strong sales growth in well-connected corridors. The city offers a promising investment opportunity for those looking for affordable luxury homes in the Mumbai Metropolitan Region.
Investors should consider the growing real estate market in Thane, as it presents an attractive investment opportunity for affordable luxury housing. The city's infrastructure upgrades, such as Ghodbunder Road, have significantly improved connectivity, leading to a surge in residential sales.
Thane's housing market shows a strong market inclination towards smaller residential units, with 45% of the overall new supply consisting of 2BHKs and 42% of 1BHKs. This growth can be attributed to the ongoing infrastructure improvements and the rising demand for affordable housing.
The expansion of infrastructure in Thane, estimated to cost INR 59,000 Cr, is guaranteed to further fuel the growth of the real estate market, making it a promising investment for those interested in the Mumbai Metropolitan Region.
