Luxury residential properties in Mumbai saw sales worth Rs 20,255 crore in 2021. The increase over 2020 was driven by various factors—rising consumer demand for bigger homes with better amenities, low mortgage rates, discounts offered by builders and incentives by way of waiver in stamp duty given by Maharashtra government—according to a joint report by India Sotheby’s International Realty and deep analytics platform CRE Matrix.
Mumbai saw sales of luxury housing properties worth Rs 9,492 crore in the previous calendar year. However, in terms of volumes, 1,214 units of luxury housing properties were sold in the city during 2021 as compared to 548 units in the previous year.
The top luxury micro-markets in Mumbai are Worli, Lower Parel, Bandra, Tardeo, Prabhadevi and Andheri.
“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, India Sotheby's International Realty.
Interestingly, Worli alone contributes about 20 per cent of the overall Mumbai luxury market. Also, primary market is two-third of the sales pie while the secondary market (re-sale) is one-third. Of the total sales volume, 848 units were sold in the primary market for Rs 13,549 crore during 2021 against 349 units worth Rs 6,275 crore in the previous year. In the secondary market, 366 units were sold for Rs 6,706 crore during the last year as compared to 199 units valued at Rs 3,217 crore in 2020.
“Housing prices have remained more or less stagnant over the last 5-6 years across all segments and price brackets. The well-informed HNI buyers 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, CRE Matrix.
The sales trend is likely to remain buoyant this year as well; 306 luxury housing units worth Rs 4,877 crore have already been sold in Mumbai during the January-March quarter of 2022, the report noted.