Luxury homes are Mumbai’s new normal, with Rs. 12,300 crores worth homes sold

Mumbai’s skyline has undergone a dramatic transformation. Where modest apartments once dominated, opulent high-rises now pierce the clouds, redefining the city’s residential paradigm. Luxury homes, once the exclusive domain of the ultra-wealthy, have become increasingly commonplace, reshaping expectations and aspirations across the metropolis.

From expansive penthouses with panoramic sea views to smart homes boasting cutting-edge amenities, these lavish dwellings are no longer outliers but the new standard. As developers cater to evolving tastes and rising incomes, Mumbai’s real estate landscape has shifted, blurring the lines between premium and everyday living. This seismic change reflects not just economic growth, but a fundamental reimagining of urban life in India’s financial capital.

As per a report, the Real estate market of the city sold Rs12,300 crores homes in last six months. Notably, the sales of luxury homes costing Rs 10 crore and above in Mumbai have surged by 8%, reaching a new high of Rs 12,300 crore in the first half of 2024, compared to Rs 11,400 crore in the same period in 2023, according to a report by India Sotheby’s International Realty and CRE Matrix.

The report, titled “Mumbai Luxury Housing H1 CY24,” highlights unprecedented sales figures, indicating robust growth and increased confidence in the city’s real estate market. This significant uptick at the high end of the market mirrors an ongoing bullish trend in residential property sales overall, reflecting the buoyancy and optimism in the Indian economy.

India Sotheby’s International Realty, a leading transaction and advisory firm for luxury homes, and data analytics firm CRE Matrix released the report on Thursday, shedding light on the impressive performance of Mumbai’s luxury housing market in the first half of 2024. Record Sales Value: The luxury housing market in Mumbai achieved its highest-ever half-yearly sales value of Rs 12,300 crore in H1 2024. This marks a significant increase from the average bi-annual sales of Rs 7,100 crore since 2019.

Over the past 12 months, 1,040 luxury units were sold in Mumbai, the highest number ever recorded in any 12-month period. This surge underscores a strong and sustained demand for luxury housing in the city.

The primary luxury segment saw sales worth Rs 8,752 crore, the second-best half-yearly sales value in the past five years. The total value of luxury homes sold in both the primary and secondary segments reached Rs 12,300 crore, setting a new record. 

The secondary segment saw the highest-ever recorded sales value of over Rs 3,500 crore, with a growth rate of 38% in H1 2024 compared to H1 2023. Its market share rose to 32% from 27% in H1 2023, indicating a mature market and growing investor confidence. Buyers have shown a preference for larger apartments, with homes between 2,000 to 4,000 sqft emerging as the most popular segment. This size preference has been particularly noticeable over the last two years.

Sudershan Sharma, Executive Director of India Sotheby’s International Realty, remarked, “Mumbai’s luxury housing market is surging and has touched unprecedented sales highs in H1 2024. Its strength underscores a growing demand for top-end luxury real estate, driven by India’s economic resilience and increasing affluence among the elite.”

Keval Valambhia, COO, MCHI-CREDAI, said, “Mumbai’s luxury real estate market is experiencing an unprecedented boom, driven by increased wealth among high-net-worth individuals and rapid infrastructure development. This growth is a testament to the city’s economic resilience and the evolving preferences of discerning buyers seeking larger, more sophisticated living spaces. The remarkable sales figures and robust demand underscore Mumbai’s status as a prime destination for luxury housing investments.”

Abhishek Kiran Gupta, Co-founder & CEO of CRE Matrix, noted, “Mumbai has witnessed around Rs 7,100 crore of luxury housing sales every half-year since 2019. In H1 2024, the luxury segment achieved its highest-ever half-yearly sales value of approximately Rs 12,300 crore. This is a clear indication of the growing demand for luxury housing, driven by HNIs and startup founders.”

Chintan Vasani, Founder partner at Wisebiz Realty said, “Luxury real estate market has undergone a notable transformation during the pandemic, with a marked increase in demand for larger homes equipped with comprehensive amenities. This surge has resulted in unprecedented wealth creation for Indian entrepreneurs, particularly as luxury real estate flourished alongside the stock market.”

Shraddha Kedia-Agarwal, Director, Transcon Developers said, “The demand for luxury homes has been rising significantly, reflecting the evolving aspirations and lifestyles of modern homebuyers. Today’s buyers seek more than just a place to live; they desire a comprehensive living experience with exceptional comfort, advanced amenities, and a prestigious address. Luxury homes meet these needs by offering well-designed spaces that balance aesthetics, functionality, and exclusivity. Additionally, the post-pandemic era has heightened the appreciation for personal space and wellness-oriented living. Buyers now prioritize homes with spacious layouts, private outdoor areas, and facilities that support a healthy, balanced lifestyle.”

Umesh Jandial, Chief Business Officer, Omkar Realtors & Developers said, “The rising demand for luxury homes is driven by several key factors. Primarily, the changing lifestyle preferences of affluent buyers who seek not just homes but exclusive living experiences. Today’s affluent consumers look for properties that combine opulence, convenience, and bespoke amenities, which luxury homes provide uniquely. Furthermore, the post-pandemic focus on wellness and holistic living has led to a preference for spacious residences with high-quality infrastructure, advanced technology, and recreational facilities. Luxury homes cater to these needs, offering expansive layouts, private outdoor spaces, and wellness features. Additionally, luxury properties are seen as safe and lucrative investments, appealing to sophisticated buyers who seek homes that reflect their success and offer an unparalleled living experience.”

Mayank Sheth , Oneclick Realtors said, “There has been a noticeable trend of younger buyers, aged 35-55, investing in luxury properties, reflecting a long-term shift in preferences towards larger, more comfortable living spaces​ . The market’s maturity is also evident in the increased activity in the secondary market, indicating strong investor confidence and the desire to diversify portfolios. Personalized marketing strategies and the preservation of brand value have further bolstered this sector’s growth.”

Advocate Dhruv Raicha, Partner at Shreeji Constructions, emphasized the importance of a nuanced approach in selling luxury developments, distinct from traditional home sales. “To preserve brand value and ensure sustained success, it is essential to avoid overt marketing tactics and price reductions,” he stated. Raicha highlighted that luxury properties thrive through a gradual sales process and word-of-mouth referrals, which attract discerning buyers who value the exclusivity of high-end residences. He also stressed the significance of personalized interactions and careful vetting of potential buyers to maintain the allure and exclusivity of luxury homes.