Sales of luxury homes priced above Rs 10 cr in Mumbai up 49% to Rs 11,400 cr: Report

New Delhi: Sales of residential properties, priced above Rs 10 crore, in Mumbai's primary and resale market rose 49 per cent in value terms to Rs 11,400 crore during the January-June period on strong demand, according to India Sotheby’s International Realty and CRE Matrix report.

During the year-ago period, the sales of luxury homes in Mumbai stood at Rs 7,660 crore.

Real estate consultant India Sotheby's International Realty, and data analytic firm CRE Matrix on Monday released a report on Mumbai luxury housing market for H1 CY'23.

The report noted that the demand for luxury apartments in the financial capital was mainly driven by industrialists, Bollywood celebrities and high-salaried employees.

As per the data, sales of luxury housing in the primary (fresh launch) market surged by 83 per cent to Rs 8,817 crore during January-June period, as compared to Rs 4,816 crore in the same period of the previous year.

However, the sales in the secondary (re-sale) market were down 9 per cent to Rs 2,583 crore from Rs 2,844 crore during the period under review.

Amit Goyal, MD, India Sotheby’s International Realty said, "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 of calendar year 2023 has been a big positive." This signifies that real estate has made a meaningful come-back into the UHNI portfolios, he added.

Abhishek Kiran Gupta, CEO and Founder of CRE Matrix and Index Tap, said that Mumbai city had been witnessing around Rs 5,300 crore of luxury housing sales every half year, since 2018.

In the first half of this year, luxury housing sales more than doubled to Rs 11,400 crore, surpassing even the annual sales of 2018–2020.

"Indians are getting richer and they are not shying away 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," Gupta said.

In terms of volumes, the report said that luxury housing sales in Mumbai were 533 units during January-June 2023, as compared to 419 units in the corresponding period last year.

Sales in the primary market rose to 388 units from 267 units, while sales in the secondary market were down to 145 units from 152 units.

According to the report, 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 per cent to luxury sales of top 10 localities, it was Malabar Hill, at Rs 1,580 crore that recorded the highest increase (481 per cent) in value of luxury homes sold during the period under review.