Sales of luxury homes costing Rs 10 crore and above in Mumbai—India's financial capital and hub of Hindi film industry—increased nearly 50 per cent to Rs 11,400 crore during 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 Mumbai luxury housing market for H1 CY’23.
The data showed that the luxury real estate sales (above INR 10 crore) in India’s financial capital and its wealthiest city, registered record setting sales in the first six months of 2023.
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The report also highlighted that sales of luxury housing in the primary market surged by 83 per cent to INR 8,817 crore in H1 2023 as compared to INR 4,816 crore in the same period of previous year.
Commenting on the latest findings, 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.
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 per cent 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.
These are the key findings –
Some of the noteworthy transactions witnessed were: