Luxury homes sales in Mumbai have risen 50% year on year, touch to Rs 11,400 crore in H1 CY’23

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Mumbai, 24 July— Sales of luxury homes costing Rs 10 crore and above in Mumbai—India’s financial capital and hub of the Hindi film industry—increased nearly 50 percent to Rs 11,400 crore during the January-June period of 2023, coinciding with a boom in residential property sales overall, according to India Sotheby’s International Realty and CRE Matrix report.

India Sotheby’s International Realty, India’s leading transaction and advisory firm for luxury homes, and data analytic firm CRE Matrix on Monday released a report on the Mumbai luxury housing market for H1 CY’23.

The data showed that the luxury real estate sales (above Rs 10 crore) in India’s financial capital and its wealthiest city, registered record-setting 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 the previous year.

Commenting on the latest findings, Mr. Amit Goyal, MD, India Sotheby’s International Realty said that 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 of CRE Matrix and Index Tap shared his insights, “Mumbai city had been witnessing around INR 5,300 Cr. of luxury housing sales every half year, since 2018. In H1 CY’23, luxury Housing sales more than doubled to 11,400 Cr., surpassing even the annual sales of 2018 – 2020. Indians are getting richer and they are not shying from flaunting their wealth. The Richie Rich is 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 the ‘Ultra-Luxury (Rs 40-70 crore)’ segment witnessed a 64 percent growth with 64 units sold (primary) in only the 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 percent 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 Cr

These are the key findings –

  •  Mumbai saw sales of luxury housing properties worth Rs 11,400 crore in H1 of the calendar year 2023, up 50 % y-o-y.
  •  In terms of volumes, luxury housing sales in Mumbai were 533 units during H1 2023 as compared to 419 units in H1 2022.
  •  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 the value of luxury homes sold in H1 CY’23 vs H1 CY’22.
  • As per the data, 388 units were sold in Mumbai’s primary market (fresh sales) for Rs 8,817 crore during H1 2023 as against 267 units worth Rs 4,816 crore in H1 2022.
  •  In Mumbai’s secondary market (re-sale), 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.