The rising demand from industrialists, film celebrities and high-salaried professionals has seen Mumbai emerge as the Numero Uno destination for the luxury housing with Worli, Malabar Hill, Mumbai Central, Lower Parel, Prabhadevi, Bandra West, Tardeo, Mahalakhmi, Andheri West and Santacruz as the star locations.
Sales of luxury homes costing Rs 10 crore and above in Mumbai increased nearly 50 percent to Rs 11,400 crore during January-June period of 2023, coinciding with a boom in overall residential property sales, according to India Sotheby’s International Realty and CRE Matrix report for H1 2023.
The data showed that the luxury real estate sales (above Rs 10 crore) in India’s financial capital and its wealthiest city, registered record sales in the first six months of 2023.The report also highlighted that sales of luxury housing in the primary market surged by 83 percent to Rs 8,817 crore in H1 2023 as compared to Rs 4,816 crore in the same period of previous year.
According to Amit Goyal, MD, India Sotheby’s International Realty , while Mumbai’s luxury housing market has been steadily rising for the last three years, in line with the buoyancy in India’s residential real estate, the increase in the sales of ultra-luxury housing units in H1 CY’ 23 has been a big positive.This signifies that real estate has made a meaningful come-back into the UHNI portfolios. With wealth creation in India growing at a fast pace, and the country’s wealthiest city Mumbai set to enter the list of top 20 cities with the most number of millionaires by 2023, we believe there’s an inherent strength in Mumbai’s luxury housing market which should continue in the future.
Abhishek Kiran Gupta , CEO & Founder CRE Matrix and Index Tap says that Mumbai City that had been witnessing around INR 5,300 Cr. of luxury housing sales every half year, since 2018, saw its sale more than double In H1 CY’23, surpassing even the annual sales of 2018 – 2020. Indians are getting richer and the Richie Rich are now eyeing larger homes than ever before with a clear preference for ocean views, higher floors and amenities galore.
The sharp increase at the top end of the market coincides with a boom in residential property sales overall and is indicative of the return of confidence in India’s residential real estate since 2021. It is noteworthy that this momentum continues even as interest rates have risen by several percentage points.
Another key finding is that ‘Ultra-Luxury (Rs 40-70 crore)’ segment witnessed a 64 percent growth with 64 units sold (primary) in only last 18 months (H1 CY’22 to H1 CY’23) in Mumbai vs 39 units in the preceding 18-month period of H2 CY’20 to H2 CY’21).The robustness of this segment is evident as it even surpassed the 36-month period sales of 57 units in this segment. However, it is the Rs 10 – 20 crore segment that still commands around 71 per cent of sales in the luxury segment, reveals India Sotheby’s International Realty and CRE Matrix data.