In 2023, Greater Mumbai saw a boom in the luxury real estate market. Over 3000 new, luxury flats were sold, totaling a sales value of INR 38,000 crore. These sales accounted for 8% of all flat sales.
The pandemic has increased the demand for luxury real estate, with central and south Mumbai being the preferred locations.
Worli, Walkeshwar, Grant Road, Marine Lines, Dadar, and Khar (West) have emerged as the most sought-after locations for luxury and ultra-luxury residences.
These luxury apartments are attracting a diverse group of buyers. Celebrities, businessmen, and high-net-worth individuals (HNIs) are the main purchasers. The year 2023 witnessed several high-profile real estate transactions.
Businessman Niraj Bajaj made one of the largest purchases, buying an 18,000 square-foot triplex in the under-construction Lodha Malabar skyscraper in Walkeshwar for INR 252 crore. Another notable transaction was by industrialist B. K. Goenka, who bought a 30,000-square foot penthouse in the opulent Worli building Three Sixty West for INR 240 crore.
According to a report using data from Liases Foras, 1,916 luxury flats were sold last year. Most of these flats were priced between INR 5 and INR 10 crore. Around 1000 homes were sold for more than INR 10 crore.
Sales of luxury and ultra-luxury residences in Mumbai increased by 86% in 2023. There was a 62% rise in sales of apartments priced between INR 5-10 crore, while sales of apartments priced over Rs 10 crore rose by a staggering 164%.
A separate report by real estate consultant CBRE shows that HNIs are showing a strong interest in luxury residential properties. Sales of homes priced at INR 4 crore and above increased by 75% in seven major cities last year.
For Mumbai, CBRE research shows that sales of luxury homes priced at INR 4 crore and above increased from 3,390 units to 4,190 units. Driven by strong sales growth and new product launches, luxury property prices in Greater Mumbai increased by 12% year over year in 2023, breaking a nearly 10-year period of stagnation.
In response to the booming market, developers introduced 2,526 new units in the luxury and ultra-luxury markets, which is 2.5 times the number of units introduced the previous year. This strong sales performance reduced the overhang of luxury apartment inventory from 50 to 27 months in 2023.
Meanwhile, micro markets in south-central Mumbai today have emerged as home to some of the biggest and most prestigious luxury housing projects in the city. These localities include Worli, Prabhadevi, Mahalaxmi, Tardeo and Lower Parel, among others in south-central Mumbai.
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