Mumbai's luxury real estate market has seen a drastic increase to Rs 20,255 crore, the highest in 2021 in four years, and may already be on its way to setting a new record in 2022, according to a joint report by India Sotheby’s International Realty (SIR) and CRE Matrix.
Total volumes of sales were at 1,214 luxury residential properties (properties priced at over Rs 10 crore each) in 2021, compared to 598 units worth Rs 9,872 crore in 2018.
The luxury market has seen a ramp-up in sales as a result of low mortgage rates, discounts offered by builders and developers, waiver in stamp duty given by state governments, and growing demand for larger houses with luxury amenities, according to the report. The report added that two-thirds of sales were primary with the rest being secondary sales.
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Worli, Lower Parel, Bandra, Tardeo, Prabhadevi, and Andheri emerged as the largest micro-markets with Worli contributing to 20 percent of Mumbai’s entire luxury residential market.
"Mumbai's luxury housing market has performed exceedingly well during the last year. This is pretty much in line with the sales velocity for luxury homes we have witnessed across the globe, including global gateway cities like London, New York and Dubai. We believe this is just the beginning of a very positive and bullish residential real estate cycle," said Ashwin Chadha, president of India Sotheby's International Realty.
High net-worth individuals also used the lockdown period to make investments in the residential real estate market for wealth creation, added the report.
"Housing prices have remained more or less stagnant for the last 5-6 years across all segments and price brackets. Well-informed HNIs have used this as an opportunity to buy right-priced assets for wealth creation. We are already witnessing prices firm up and starting to rise," said Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix.
But despite the pandemic conditions mostly retreating from the country, the bullish upcycle looks to remain in strength at least for 2022. About 306 luxury housing units worth Rs 4,877 crore have already been sold in Mumbai during the first quarter of the calendar year.
