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The Mumbai luxury housing market has experienced a significant boost in sales, marking a remarkable growth of nearly 50%. The sales figures surged from ?4,524 crore during the first half of 2022 to a substantial ?8,817 crore in the corresponding period of this year. A recent report, jointly released by India Sotheby's International Realty and CRE Matrix, a real estate data analytics firm, sheds light on these impressive developments. The report highlights the favourite luxury destination for buyers, which remains Worli. Let's delve deeper into the details.
In terms of the number of units sold, the luxury housing market in Mumbai has witnessed a positive trend. During the first half of 2023, there were 533 units sold, which is a significant rise compared to the 419 units sold during the same period in 2022. The data presented by the report reveals that the primary market in Mumbai saw the sale of 388 units valued at ?8,817 crore in the first half of 2023. This is in contrast to the 267 units that were sold for ?4,816 crore during the same period in 2022.
Furthermore, the secondary market in the city also showed movement, with 145 units being sold for ?2,583 crore in the first half of 2023. This is slightly lower compared to the 152 units that were sold for ?2,844 crore in the entire calendar year of 2021.
In the past five years, luxury apartments have been getting much bigger. In the beginning of 2018, only 18 luxury homes with sizes between 1,000 to 2,000 square feet were sold. But in 2023, this number increased to 63 homes. More people also started showing interest in apartments in the 2,000 to 4,000 square feet range. In 2018, 101 of these apartments were sold, but in 2023, the number went up to 240.
Even larger apartments, between 4,000 to 8,000 square feet, saw a rise in sales. In 2018, 15 of these were sold, and in 2023, it became 73. In 2018, only 4 apartments bigger than 8,000 square feet were sold, but this went up to 12 in 2023. A big part of the sales in the first half of 2023, around 62%, were apartments in the 2,000 to 4,000 square feet range.
Worli’s popularity emerged as a driving force in the luxury housing market, setting the stage for other localities. The top localities where luxury homes priced above ?10 crore were sold included Malabar Hill, Mumbai Central, Lower Parel, Prabhadevi, Bandra West, Tardeo, Mahalakshmi, Andheri West, and Juhu-Santacruz West. This suggests that the demand for luxury homes extends not only to South and Central Mumbai but also to the western suburbs. Surprisingly, these top 10 localities accounted for a significant 86% of the total primary luxury sales by value in the first half of 2023.
A few noteworthy projects made a substantial impact on the luxury housing market. Notably, four projects, Three Sixty West in Worli, Lodha Malabar Hill in Malabar Hill, Raheja Modern Vivarea at Mahalaxmi, and Oberoi Sky City in Borivali, contributed greatly to the total sales of ?8,817 crore in the first half of 2023. These sales gained momentum after the removal of the capital gains tax benefit, which was announced in the union budget on February 1, 2023. This led to increased sales activity, particularly among high-net-worth individuals, who rushed to invest in luxury homes before the new regulation took effect.
In conclusion, Mumbai's luxury housing market has experienced a remarkable surge in sales, with primary sales nearly doubling in the first half of 2023 compared to the previous year. Localities such as Worli have played a pivotal role in driving this growth, and the market has extended its reach beyond traditional luxury hotspots. The removal of certain tax benefits triggered a surge in luxury home sales, particularly among high-net-worth individuals. With modern amenities like spacious terraces and technological advancements, the luxury housing market is catering to the evolving needs and preferences of affluent buyers. The benefits of investing in luxury properties are not only monetary but also encompass exclusivity and a tranquil lifestyle amidst the bustling city.
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