Mumbai sells record ₹12,300 cr of luxury homes in Jan-June period as buyers upgrade to bigger apartments

Luxury homes in Mumbai, India's most expensive real estate market, clocked record sales of ₹12,300 crore in the first half of 2024 on the back of growing demand for high-end properties, with Worli cornering more than a third of the purchases.

In comparison, about ₹11,400 crore of luxury homes - priced ₹10 crore and above - were sold in the first half of last year, according to a joint report by property advisory India Sotheby’s International Realty and data analytics firm CRE Matrix. About ₹3,500 crore of the sales came from the secondary or resale market, up 38% from levels in H1 2023.

While south Mumbai's Worli accounted for 37% of the value of luxury home sales, there was a significant increase in this category in suburban Goregaon East, driven primarily by the Oberoi Elysian project. Other micro-markets that contributed to sales in a big way are Mahalakshmi, Prabhadevi, Mumbai Central, Malabar Hill, Bandra West, Lower Parel, Tardeo and Byculla.

Luxury homes in Goregaon East valued at about ₹881 crore - an over 15-fold increase - were sold in the first half of the year, making it one of the top 10 contributors among the city’s micro-markets.

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There’s been a resurgence in the luxury residential real estate market in top cities such as Gurugram, Mumbai and Bengaluru as buyers upgrade homes, prompting developers to launch higher-priced homes. The report did not mention the value of luxury home sales in Gurugram and Bengaluru.

According to Abhishek Kiran Gupta, co-founder and chief executive officer of CRE Matrix, Mumbai has registered half-yearly sales of about ₹7,100 crore in the luxury housing segment since 2019.

“The city has achieved the highest ever half-yearly sales value in the luxury residential space in 2024. This is a clear indication that the demand for luxury housing is growing and high net worth individuals and startup founders are driving the segment to new heights,” Gupta said.

Big is better

Buyer preferences have shifted towards larger apartments over the past two years. The 2,000 square foot to 4,000 sq. ft segment has emerged as the biggest contributor and remains the sweet spot in terms of size preferences in luxury homes, according to the report.

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Builders including Macrotech Developers, Oberoi Realty Ltd, and K Raheja Corp Homes have actively introduced luxury residential projects in Mumbai. Some of the biggest sale transactions in recent months were in projects such as Lodha Malabar in Malabar Hill and Oberoi Realty's 360 West in Worli.

New high-end projects are coming up as well. K Raheja Corp Homes will launch two such projects in Haji Ali and Worli, both in south Mumbai, with homes priced at ₹30-35 crore. Bengaluru-based Prestige Group will soon start a project in Worli, with four- and five-bedroom apartments sized 3,500-7,000 sq. ft. The still-unnamed project will start to sell at ₹1,00,000-1,10,000 per sq. ft.

“The recent Hurun Global Rich List highlights a 51% increase in Indian billionaires, with 271 billionaires, a majority of whom have a base in Mumbai. We believe the country's expanding wealth and aspirations for luxurious living will keep this segment buoyant,” said Sudershan Sharma, executive director, India Sotheby’s International Realty.