Thane housing prices soar 46% in 3 years-Should you still buy here?

 Thane is no longer just a Mumbai suburb—it’s a booming residential hub. Over the past three years, average home prices in Thane have jumped a steep 46%, from ₹13,550/sq. ft. in Q2 2022 to ₹19,800/sq. ft. as of Q2 2025, according to a new ANAROCK report titled “Thane: The Rising Star of MMR Real Estate.” 

Real Estate Snapshot

 

Between FY 2020 and FY 2025, Thane saw steady capital value growth fuelled by infrastructure upgrades and rising homebuyer interest, with under-construction homes outperforming ready units in 2025

         

  But what does this mean for long-term homebuyers? Is it too late to enter this fast-appreciating market?

 

 

"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," said Aayush Puri, Head – ANAROCK Channel Partners(ACP) & ANACITY.

 

A total of 65,800 units were launched in Thane between FY 2020 to FY  2025, finds the report. Nearly 45% of the overall new supply in this  period comprises of 2BHKs, followed by 42% of 1BHKs. 3BHKs  comprise a 11% share, and 4BHKs just 2%

 

 What’s Fueling Thane’s Property Boom?

Massive Infrastructure Push: With projects worth ₹59,000 crore underway—including new metro lines, road upgrades, and connectivity to Mumbai, Navi Mumbai, and beyond—Thane’s accessibility is rapidly improving.

 

Affordable Luxury: A 2BHK in Thane (~650 sq. ft.) costs around ₹1.25 crore—at least 78% cheaper than a similar unit in Mumbai’s western suburbs.

 

Post-Covid Momentum: New housing supply surged 103% in FY23 over FY20, and sales jumped 78% by FY24, with 19,600 units sold.

 

Buyer Preferences: Smaller, Smarter, and Skyscraper Living

Between FY2020 and FY2025:

 

2BHKs accounted for 45% of new launches.

 

1BHKs came in close at 42%.

 

Only 11% of launches were 3BHKs and just 2% were 4BHKs, reflecting demand for budget-conscious homes.

 

Vertical growth is booming too—Thane now has 89 residential towers with 40+ floors, reflecting rising land scarcity and urban densification.

 

Why Investors Are Still Interested

Grade A Confidence: 47% of new supply is from top-tier developers, ensuring quality and buyer trust.

 

Mid-Budget Sweet Spot: 44% of supply is priced between ₹80 lakh and ₹1.6 crore—a range that suits both end-users and investors.

 

Consistent Demand: In Q1 FY26 alone, 3,130 homes were sold against 2,910 new launches—a healthy absorption rate.

 

“Thane is not just a satellite city anymore—it’s a value-rich real estate magnet,” said Puri. 

 

"We are seeing a strong market inclination towards smaller  residential units. On that front, Thane is at least 78% more affordable  than suburban Mumbai. For instance, a 2BHK home with an average  carpet area of 650 sq. ft. costs about INR 1.25 Cr, while in Mumbai’s  central suburbs it will cost around INR 2.11 Cr. In the western suburbs, it  goes as high as INR 2.36 Cr – and this is just the BSP, not factoring in  GST, registration, and other charges," Puri added.

 

Where Is the Action?

Top 5 high-growth micro-markets:

 

Panchpakhadi & Naupada (Thane Central)

 

Pokhran Road

 

Majiwada-Balkum

 

Kolshet Road

 

Kasarvadavali

 

These zones dominate new launches and are emerging as investment hotspots thanks to proximity to transport corridors and social infrastructure.

 

At what price?

Around 44% of Thane’s residential supply is in the Rs 80 lakh to Rs 1.6 Cr. budget segment, which will likely dominate the market  going forward given the prevailing capital value trends in the region, as per Anarock.

 

Bottom Line: Should You Buy in Thane?

Yes, if you want a long-term asset with solid appreciation potential—and especially if you're priced out of Mumbai’s prime areas. The sweet spot remains 1–2BHKs in well-connected zones, ideally with upcoming infrastructure and from reputed developers.

 

But be cautious of overpaying—prices have surged fast, and new supply is catching up. Focus on projects with clear delivery timelines and long-term growth prospects.

 

 Tip for First-Time Buyers: Use Thane’s price differential to your advantage. Opt for under-construction homes from trusted names for the best value. Just remember to factor in GST and other hidden costs before signing.