Posted on 1 March, 2024 by Sugee Group
Luxury housing encompasses super-spacious homes in strategic locations, built using the latest technology and high-quality construction materials. These aspirational addresses often offer stunning views as well as luxurious amenities and an exclusive lifestyle to discerning and affluent buyers. In recent times, several factors such as evolving lifestyles and improving economic status have led to a new phase of growth for the luxury housing market in India. Even as many major cities in India have seen an upsurge in demand for luxury homes, the financial capital has stood out for its buoyancy and big-ticket deals by top builders in Mumbai. On the back of multiple high-value transactions, Mumbai’s luxury housing market has gained tremendous sales momentum turning the city into the nation’s luxury capital.
Record-high Sales of Luxury Homes
Today, luxury homes are synonymous with prime locations, state-of-the-art features, splendid views and most importantly quality in building design, materials and maintenance. According to data released by property consultancy Anarock, over 55 ultra-luxury homes priced at Rs 40 crore were sold till November 2023 across seven major cities and their cumulative sales value added up to Rs 4,063 crore. Mumbai dominated the sales with 53 of these big-ticket deals. Mumbai’s supremacy is backed by the Prime Global Cities Index Q3 2023 released by estate consultancy Knight Frank which ranks the city fourth amongst 46 cities globally in terms of price rise of luxury homes.
Liases Foras Real Estate Rating & Research has also released data that shows that in the last year, Mumbai’s real estate market witnessed the sale of 722 apartments priced at Rs 10 crore and above. The data also confirmed the status of South and Central Mumbai is considered as the hub of the ultra-luxury segment with nearly three times the sales growth. The allure of an opulent lifestyle curated by developers in Mumbai in plush areas such as Worli, Dadar, Lower Parel, and Malabar Hill has attracted the upper management of organizations, industrialists and celebrities. Prime developments in these areas have redefined luxury with their spacious 3 BHK and 4 BHK luxury flats that offer a range of premier amenities. The Worli sea-facing flats are highly sought-after for their uninterrupted, panoramic and stunning views of the Arabian Sea.
What Sets Mumbai Apart?
Mumbai’s property market has demonstrated remarkable resilience and has remained strong and buoyant in facing challenges like higher interest rates. This is evident from increased stamp duty collection that has been primarily driven by activity in the premium segment. According to official figures, the state government has collected over Rs 9,220 crore through stamp duty till October 2023 and has surpassed the record high of Rs 8,893 crore in 2022. There are several factors that have contributed to Mumbai’s burgeoning luxury housing market, let’s briefly look at what sets the city apart:
1. Rising Affluence and Evolving Lifestyle
The maximum city is home to a growing number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) including industrialists, tycoons, CXOs, actors, and sportsmen. This well-heeled set of buyers seeks exclusive residences offering an opulent and elevated lifestyle. This has prompted top builders in Mumbai to conceptualize and create ultra-luxury properties that cater to unique preferences. From the ticket size of apartments to the quality of building materials and level of amenities offered and sea views, the definition of luxury homes is being rewritten.
2. Evolution of amenities
While luxury homes have always held a strong appeal, they have truly evolved with an emphasis on bespoke design and exclusive lifestyle in the form of high-end amenities. When it comes to differentiating their luxury offerings, developers in Mumbai are going the extra mile to integrate varied amenities into their projects. From double-height ceilings to a mini-theatre and swimming pool, these amenities offer a lifestyle that’s specially curated for the well-traveled and discerning buyers. The sky deck to experience the calmness of the sea and stunning views of the city add another level of sophistication to Mumbai’s luxe addresses.
3. Infrastructure Development and Connectivity
Mumbai is currently witnessing a major infrastructure overhaul with the development of several major projects that will augment connectivity and improve the quality of life in the city. Multiple Mumbai Metro corridors, the Coastal Road and Mumbai Trans Harbor Link are set to connect many prime areas of the city including Central Mumbai, South Mumbai, Navi Mumbai and Bandra. These infrastructural advancements have also opened up new locations for developers to execute the redevelopment of buildings and create luxurious offerings for well-heeled buyers.
4. Stable Investment Option
India’s strong economic dynamics and a stable real estate market have prompted luxury homebuyers to invest in this category. Luxury housing is being widely favoured by investors looking to diversify their portfolios. High-end projects offered by the top ten builders in Mumbai have come up as a lucrative investment option offering stability and high returns.
5. Exclusivity and Stature
A distinguished address in one of the city’s most sought-after localities by top builders of Mumbai is considered a definite status symbol. It’s only in Mumbai that one gets a chance to live next to affluent personalities from different fields. The allure of a swanky locality and an exclusive pin code elevates your social stature to the highest strata of society. Developers are upping the ante by redeveloping residential buildings and creating landmark projects that offer 3 BHK and 4 BHK luxury homes in Worli and other prime locations with top-notch amenities, panoramic sea views and unique design and architecture.
Top Luxury Markets in Mumbai
Micro markets such as Worli, Dadar, Prabhadevi, Mahalaxmi, Tardeo, and Lower Parel have emerged as the top destinations for luxury housing in Mumbai. With limited land parcels, most developers are opting for redevelopment of buildings and creating luxurious structures that appeal to connoisseurs of high living. The aspirational value of these localities as well as exclusive lifestyle amenities is a winning combination that attracts several HNIs.
Promising Future
According to the ‘India Industry Monitor Q1 2023’ report by property consultancy CBRE, the luxury housing segment continues to grow at an astounding rate with the first quarter of 2023 witnessing a remarkable jump of approximately 151 percent. Amidst a spate of new launches, the premium housing market is expected to grow at a healthy rate in 2024. The rise of millennial buyers seeking uber-luxe homes to match their aspirations is likely to add further traction to the luxury segment.
With the luxury housing segment showing promise, top developers are keenly eyeing this space. Mumbai’s luxury market is only taking off and is showing no signs of slowing down. It presents immense opportunities to developers as well as affluent buyers seeking a world-class address in one of the world’s most aspirational locations.