Average Home Prices in Thane up 46% in Last 3 Years, 2BHKs Dominate New Supply

Mumbai, July 17, 2025: Thane, once seen as a supporting suburb, now headlines the Mumbai Metropolitan Region (MMR) residential real estate revolution, riding on rapid infrastructure upgrades, surging buyer interest and a hot housing market.

A report by ANAROCK titled ‘Thane: The Rising Star of MMR Real Estate’ highlights the city’s explosive housing price growth—a whopping 46 per cent leap in average residential prices in just three years from INR 13,550/sq ft in Q2 2022 to INR 19,800/sq ft in Q2 2025.

Aayush Puri, Head, ANAROCK Channel Partners (ACP) & ANACITY, points out that prices in Thane have rocketed 60 per cent since 2020, when the average was around INR 12,400 per sq ft.

“Thane is not just a hot residential destination—it has also played a key role in redefining the MMR housing landscape. “Thane’s steady capital values growth has largely been fuelled by infrastructure upgrades that have ignited homebuyer interest. Demand for under-construction homes outperforms ready-to-move-in units in 2025 so far largely because the city offers luxury homes at relatively affordable prices in contrast to Mumbai’s prime markets.”

A total of 65,800 units were launched in Thane between FY 2020 to FY 2025, according to the report. Nearly 45 per cent of the overall new supply in this period comprises 2BHKs, followed by 42 per cent of 1BHKs. Three BHKs comprise an 11 per cent share and 4 BHKs just 2 per cent.

“Affordability is a major keyword in Thane’s housing market,” says Puri. “We are seeing a strong market inclination towards smaller residential units. On that front, Thane is at least 78 per cent more affordable than suburban Mumbai.”

For instance, a 2BHK home with an average carpet area of 650 sq ft costs about INR 1.25 crore while in Mumbai’s central suburbs, it will cost around INR 2.11 crore. In the western suburbs, it goes as high as INR 2.36 crore—and this is just the BSP, not factoring in GST, registration and other charges.”

Amid core Mumbai’s skyrocketing property values, Thane is increasingly becoming the destination of choice for homebuyers and investors seeking better value without compromising on quality. The report adds that Thane’s residential skyline boasts of 89 skyscrapers of 40-plus floors, mirroring the land scarcity-driven vertical growth imperative of Mumbai City.

There have been some notable changes on the Thane real estate market. Between COVID-struck FY 2020 and FY 2025, FY 2023 saw new housing supply there grow by almost 103 per cent when compared to FY 2020 while absorption rose a dizzying 78 per cent to 19,600 units in FY 2024 from FY 2020. In Q1FY 2026, Thane saw around 3,130 residential units sold while new supply stood at 2,910 units.

Other Report Highlights:

• 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. Forty-seven per cent of the new supply being delivered by Grade A developers
• Around 44 per cent of Thane’s residential supply is in the INR 80 lakh to INR 1.6 crore budget segment, which will likely dominate the market going forward given the prevailing capital value trends in the region
• Thane, being in the heart of MMR, is assured of sustained real estate growth thanks to large-scale planned and ongoing infrastructure enhancements worth INR 59,000 crore