Tuesday, March 5, 2024

Embracing elegance: Mumbai’s luxury real estate gears up for a stellar 2024

Based on data from the Maharashtra Real Estate Regulatory Authority (MahaRERA), the Mumbai real estate market, famous for its luxurious properties, saw an average daily launch of almost 150 property units during the first half of 2023. This number had almost doubled to about 200 units per day in 2022 compared to the pre-covid pandemic when around 100 units were launched daily.

The substantial volume of launches indicates that the sales momentum generated by these releases will help maintain market growth and stability in 2024. This is especially relevant as construction continues on under-construction projects, and developers work towards consolidation. In a noteworthy development, the Mumbai property market has exhibited remarkable stability over the past five months, with monthly property registrations consistently falling within the range of 9,000 to 10,500. This trend is poised to bring significant advantages to the luxury housing sector, with several esteemed developers actively engaged in prestigious projects within this segment.

Luxury home sales have experienced a robust surge of nearly 50% during the first half of 2023. Market data reveals that, in terms of volume, the luxury housing market in Mumbai saw a substantial increase, with 533 units sold in H1 2023 compared to 419 units in the same period of 2022. Notably, there has been an unprecedented demand for luxury homes priced above 10 crore, resulting in record-breaking sales.

Ongoing festive season

These numbers are poised to rise even further as we approach the festive season. Among the most significant beneficiaries of this anticipated surge will be the premium and luxury segments. This trend is supported by data from MahaRERA, which has shown an increase in the launch of larger 3 and 4 BHK apartments in the past two years.

Business for the real estate market in Mumbai will not be as usual in the upcoming festive season, but there is an expectation that sales might go up by 15% to 25%. Unlike Pune or Bengaluru, Mumbai is a more end-user-driven market when it comes to the residential real estate market, and these end users will get more active during the festive which will help boost sales.

Not only end users, but now is the time for retail and institutional investors to play a big role in the Mumbai real estate market. The surge in project launches, with some even doubling over the past two years, has created a scenario where numerous opportunities await investors in the market. They can strategically select projects from reputable developers and make sound investments, particularly in cases where developers are seeking consolidation. The increase in launches also opens gates for better rental yield especially with the ongoing infrastructure overhaul being undertaken in Mumbai city.

Good time for investors to be back in Mumbai

Following Dubai, Tokyo, and Singapore, Mumbai stands out as one of the top choices for investment appreciation and return on investment. Among the 26 prime residential markets worldwide, both Mumbai and Auckland are projected to take the lead in terms of the highest surge in prime residential prices in 2024, with both cities expected to witness a remarkable 5% increase. This substantial growth can be attributed to improving GDP figures and the city’s attractive value proposition, coupled with significant investments in infrastructure, which will serve as the primary driving forces behind the surge in luxury housing prices in Mumbai.

Boost in luxury living 

Covid-19 has not only made homebuyers realize the importance of extra space in the house but it has also increased the aspiration of home buyers. Digital penetration has exposed discerning customers to luxurious lifestyles sparking that ambition and desire for ultra-luxury living. This coupled with the infrastructure boost in the form of Mumbai Metro corridors, Coastal Road, Mumbai Trans Harbor Link, etc. are all ensuring increased sales momentum of high-value transactions around Central Mumbai, Bandra, and South Mumbai. 

Today, luxury home sales are not confined solely to South Mumbai; instead, we are witnessing significant opportunities emerging in up-and-coming micro markets such as Chembur in Central Mumbai, as well as the western suburbs. Another phenomenon — buyers prefer bigger size of luxury apartments. These have been expanding exponentially from the 2000 sq ft range to above 8000 sq ft. Buyers are purchasing ‘jodi flats’ or duplexes to enjoy the lavishness of space. Luxury housing sales are shattering records, and this momentum is projected to persist not only throughout the remainder of this year but also well into 2024. This surge is underpinned by an overwhelming level of interest from high-net-worth individuals (HNIs) and ultra-high net worth individuals (Ultra-HNIs).

Sunny Bijlani is joint managing director of Supreme Universal

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Updated: 03 Oct 2023, 01:51 PM IST

#Embracing #elegance #Mumbais #luxury #real #estate #gears #stellar

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