July 25, 2023: Sales of luxury homes costing Rs 10 crore and above in Mumbai has increased nearly 50% to Rs 11,400 crore during January-June period of 2023, said a report on Mumbai luxury housing market for H1 CY’23 by India Sotheby’s International Realty and CRE Matrix report. In terms of volumes, luxury housing sales in Mumbai were 533 units during H1 2023 as compared to 419 units in H1 2022.
The report highlighted that sales of luxury housing in the primary market surged by 83% to Rs 8,817 crore in H1 2023 as compared to Rs 4,816 crore in the same period of previous year. The top luxury micro-markets in Mumbai are Worli, Malabar Hill, Mumbai Central, Lower Parel, Prabhadevi, Bandra West, Tardeo, Mahalakshmi, Andheri (West) and Santacruz (West). While Worli contributed 31% to luxury sales of top 10 localities, it was Malabar Hill, at Rs 1,580 crore that recorded the highest increase (481%) in value of luxury homes sold in H1 CY ’23 vs H1 CY’22.
In Mumbai’s secondary market (resale market), 145 units were sold for Rs 2,583 crore during H1 of 2023 as compared to 152 units valued at Rs 2,844 crore in the 2021 calendar year.
Amit Goyal, MD, India Sotheby’s International Realty, said, “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,” he said.
Abhishek Kiran Gupta, CEO and founder CRE Matrix and Index Tap said, “Mumbai city has been witnessing around Rs 5,300 crore of luxury housing sales every half year, since 2018. In H1 CY’23, luxury housing sales more than doubled to 11,400 crore, surpassing even the annual sales of 2018 – 2020. Indians are getting richer and they are not shying from flaunting their wealth. The Rich are now eyeing larger homes than ever before with a clear preference for ocean views, higher floors and amenities galore.”
As per the report, 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% 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% of sales in the luxury segment, reveals India Sotheby’s International Realty and CRE Matrix data.
Some of the noteworthy transactions witnessed were:
Radhakrishnan Damani Family – Oberoi Three Sixty West, Worli – Rs 1,238 crore
JP Taparia Family – Lodha Malabar, Malabar Hill – Rs 310 crore
Jay Mahtani – Morena House, Carmichael Road – Rs 83.4 crore
Alia Bhat – Aerial View CHSL, Bandra (W) – Rs 37.8 crore
Sandeep Khosla – Rustomjee Elements, Andheri (W) – Rs 25.7 crore
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