Luxury home sales in Mumbai rise 50% in CY23

Mumbai Sales of luxury homes costing Rs10 crore and above in Mumbai, India’s financial capital and hub of Hindi film industry—increased nearly 50 per cent to Rs11,400 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 Rs10 cr) in India’s financial capital and its wealthiest city, registered record setting sales in the first six months of 2023. The report also highlighted that sales of luxury housing in the primary market surged by 83 percent to Rs8,817 crore in H1 2023 as compared to Rs4,816 crore in the same period of previous year.

Talking to Bizz Buzz, 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, we believe there’s an inherent strength in Mumbai’s luxury housing market which should continue in the future,” he said.

Abhishek Kiran Gupta, CEO and founder, CRE Matrix and Index Tap, shared his insights, “Mumbai city had been witnessing around Rs5,300 cr of luxury housing sales every half year, since 2018. In H1 CY23, luxury Housing sales more than doubled to Rs11,400 cr, surpassing even the annual sales of 2018-2020. Indians are getting richer and they are not shying 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.”

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 (Rs40-70 cr) segment witnessed a 64 per cent growth with 64 units sold (primary) in only last 18 months (H1 CY22 to H1 CY23) in Mumbai vs 39 units in the preceding 18-month period of H2 CY20 to H2 CY21).

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 Rs10-20 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.