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Thane's residential property market has recorded a steep 46% surge in average prices over the past three years, with rates reaching INR 19,800 per sq. ft. by the end of Q2 2025. The transformation, driven by infrastructure development and affordability, has seen a 103% spike in new housing supply and 78% rise in absorption since FY 2020. ANAROCK's latest report notes that compact homes, particularly 1BHK and 2BHK units, dominate the market. Approximately 44% of housing falls within the INR 80 lakh to INR 1.6 Cr range, attracting buyers priced out of core Mumbai.
Thane's housing market has undergone a sharp transformation over the last five financial years, with average residential property prices rising from INR 13,550 per sq. ft. in Q2 2022 to INR 19,800 per sq. ft. by the close of Q2 2025, marking a 46% increase. ANAROCK's report, Thane: The Rising Star of MMR Real Estate, highlights how this once-satellite suburb has now become a central player in the Mumbai Metropolitan Region (MMR)'s real estate narrative. Advertisement
Aayush Puri, Head of ANAROCK Channel Partners (ACP) and ANACITY, observed that since 2020, when rates hovered around INR 12,400 per sq. ft., prices in Thane have shot up by nearly 60%. He attributed this to extensive infrastructure upgrades and rising interest from homebuyers. Puri also noted that the demand for under-construction projects has surpassed ready-to-move-in options in 2025, largely due to the availability of high-quality housing at comparatively moderate prices versus Mumbai's premium areas.
The report indicates that 65,800 new units were launched between FY 2020 and FY 2025, with a dominant preference for compact units 45% of the supply comprises 2BHKs and 42% are 1BHKs. Larger homes make up a smaller share: 3BHKs stand at 11%, and 4BHKs account for just 2%. The affordability of compact residences remains a core strength. According to Puri, a 2BHK home in Thane with a 650 sq. ft. carpet area typically costs INR 1.25 Cr, whereas comparable units in Mumbai's central and western suburbs cost around INR 2.11 Cr and INR 2.36 Cr respectively, excluding GST, registration, and other charges.
Thane's evolution is further marked by its skyline. The city now hosts 89 skyscrapers of over 40 floors, reflecting a shift towards vertical development amid shrinking land availability. Developers have capitalised on this opportunity to offer luxury living within a more accessible price range.
Between FY 2020 and FY 2025, housing supply in Thane doubled, with a 103% rise recorded in FY 2023 as compared to FY 2020. Sales figures also saw a sharp uptick, with 19,600 residential units absorbed in FY 2024-a 78% increase from FY 2020. The momentum appears sustained, as Q1 FY 2026 reported the sale of approximately 3,130 residential units alongside a new supply of 2,910 units.
The report further identifies five key micro-markets based on the highest volume of new launches: Panchpakhadi and Naupada in Thane Central, Pokhran Road, Majiwada-Balkum, Kolshet Road, and Kasarvadavali. Notably, 47% of the new supply is being delivered by Grade A developers, which has played a significant role in boosting buyer confidence.
Roughly 44% of the housing supply in Thane falls within the INR 80 lakh to INR 1.6 Cr price range, which continues to attract strong demand. The region's real estate prospects remain bolstered by ongoing and planned infrastructure projects worth INR 59,000 Cr, cementing Thane's place as a critical growth centre in the heart of the MMR.
The city's ability to accommodate buyers priced out of central Mumbai, without compromising on quality or connectivity, has positioned it as a compelling alternative. With a significant share of new supply coming from top-grade developers and backed by large-scale infrastructure investments, Thane's real estate trajectory shows no sign of plateauing in the near term.
Source - PTI
5th Jun, 2025
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