Mumbai Residential Market on a Luxury High

Riding high on the luxury housing market, the Mumbai residential market has seen the highest ever secondary market sales and recorded robust sales in key primary micro markets of the metropolis.  

Sales of luxury homes costing Rs 10 crore and above in Mumbai have risen 8 percent making another new high of Rs 12,300 crore in H1 CY’24, compared to Rs 11,400 crore in H1 CY’23, according to a report by India Sotheby’s International Realty and CRE Matrix.

This significant surge at the high end of the market aligns with an ongoing bullish trend in residential property sales overall, reflecting the exuberance and confidence in the Indian economy.

Key Highlights

• Record Sales Value:Mumbai’s luxury housing market achieved its highest-ever half-yearly sales value of Rs 12,300 crore in H1 CY24. This marks a significant increase from the average bi-annual sales of Rs 7,100 crore since 2019.

• Unprecedented Unit Sales:A total of 1,040 luxury units were sold in Mumbai over the past 12 months, the highest number ever recorded in any 12-month period. This surge is indicative of a strong and sustained demand for luxury housing in the city.

• Primary Market:The primary luxury segment saw sales worth Rs 8,752 crore, the second-best half-yearly sales value in the past five years, just slightly below the high of H1 CY23. The total value of luxury homes sold in both the primary and secondary segments reached Rs 12,300 crore, setting a new record.

• Secondary Market: Rs 3,500+ Cr. highest-ever recorded sales value in secondary segment in Mumbai with growth rate of 38 percent  in H1 CY’24 compared to H1 CY’23. The secondary segment, in particular, has experienced growth in both sales and market share within the luxury housing sector. In H1 CY’24, the market share of the secondary segment reached 32 percent , up from 27 percent in H1 CY’23. This signifies the market’s maturity and demonstrates investor confidence in diversifying their portfolios.

• Dominant Localities:The top 10 localities in Mumbai contributed 80 percent of the total luxury housing sales value, with Worli leading the charge, accounting for 37 percent of the overall luxury sales value. Goregaon East saw a remarkable 1,444 per cent increase in luxury home sales value, driven primarily by high sales in Oberoi Elysian.

• Age Profile of Buyers:It is significant to note that more than half of homebuyers in the more than Rs 10 Crore luxury market belong to the 35-55 age category. This indicates a long-term trend of younger buyers preferring to buy luxury homes in India’s financial capital.

•  Preferable Size: Over the last two years, the trend of buyer preferences has shifted towards buying larger apartments. We see this trend is particularly noticeable in all sizes of homes between 1,000 to 8,000 sqft. in the last 2 years. The 2,000 to 4,000 sqft. size segment has emerged as the largest contributor – this remains the sweet spot in terms of size preferences for luxury homes priced above Rs 10 crore.

Sudershan Sharma, Executive Director, India Sotheby’s International Realty said, ” The strength of Mumbai market underscores a growing demand for top-end luxury real estate, driven by India’s economic resilience and increasing affluence among the elite. The latest Hurun Global Rich List highlights a 51 percent increase in Indian billionaires, with 271 billionaires, a majority of whom have a base in Mumbai. Unprecedented infrastructure development in the city has also opened new markets for luxury housing. We believe the country’s expanding wealth and aspirations for luxurious living will keep this segment buoyant.”

Abhishek Kiran Gupta, Co-founder & CEO of CRE Matrix, noted, ” That the luxury segment in Mumbai has achieved its highest ever half yearly sales value, is a clear indication that the demand of luxury housing is growing and HNIs and start-up founders are driving the segment to newer heights”.

 Key Trends

• Units over 4,000 sqft contributed 18 percent to overall primary sales in Mumbai’s luxury housing in H1 CY’24, up from 13 percent in H1 CY’22.
• 24 percent of buyers from top 10 localities for luxury housing in Mumbai originated from areas beyond South Mumbai, indicating an upgrade in lifestyle and non-stickiness to original localities.
• Goregaon East accounted for 14 percent of homebuyers among the top 10 localities for luxury home purchases.
• The 65 years plus age segment is emerging as a strong buyer group as India’s seniors convert business gains into real estate assets.

Noteworthy Transactions

• Rs 270 crore by Anil Gupta & Well-known Polyester Ltd at Lodha Malabar, Malabar Hill
• Rs 156.5 crore by Rekha Jhunjhunwala & Family at Rockside Apartment, Malabar Hill
• Rs 116.4 crore by Vratika Gupta at Oberoi 360 West, Worli
• Rs 101 crore by Girdharlal Bawri & Others at G+1 Bungalow, JVPD Scheme, Juhu
• Rs 97.4 crore by Mavjibhai Shamjibhai Patel at Oberoi 360 West, Worli

With the market showing resilience and continuous growth, the outlook for the remainder of 2024 remains positive.