Luxury Real Estate Market Trends in Mumbai (2023)

Luxury housing in Mumbai has been doing exceptionally well in the last couple of years, and there is an increase in high-ticket transactions across the city. Numerous factors have fuelled the growth of Mumbai's real estate market over the years and economic recovery and increasing demand for residential and commercial properties will continue to drive Mumbai's real estate trends in 2023.

What Does Luxury Real Estate in India Mean?

The definition of luxury housing in India has evolved beyond opulence and extravagance to include a holistic way of living. Luxury housing mainly focuses on thoughtful design, functionality, sustainability, and a sense of community. Home buyers are now seeking properties that align with the new definition of luxury housing and sustainable living.

Many celebrities, business tycoons, wealthy individuals, and foreign expats who exhibit their plush lifestyles often buy luxurious villas, penthouses, and high-end apartments in the luxury housing segment. They offer world class amenities, like concierge services, infinity pool, private gyms and movie theatres, clubhouses, spa and wellness centres, rooftop lounges, and a stunning view.

Upward Surge in India’s Luxury Real Estate

Key metro cities in India are witnessing a surge in demand for luxury real estate. In 2019, almost 17,740 luxury homes were across the country. But in 2022, the number of sold luxury properties was approximately 65,680, which is almost a 200% jump in the demand. It is expected that this trend will continue through 2023.

Here are some facts and data on the luxury home market —

India's seven prime residential markets sold 4,000 luxury housing units in the first quarter of 2023 (Q1 2023), compared with 1,600 units in Q1 2022.

Luxury residences are usually associated with prestigious developments, elite neighbourhoods, exclusive amenities, and global conveniences.

What's Driving Mumbai's Luxury Real Estate Boom?

The following factors are responsible for the upward swing in luxury real estate trends over the past few years.

• A Robust Economic Growth Rate

  A new class of wealthy individuals has emerged due to the expansion of the Indian economy and the emergence of diverse business models, including technology, venture capital, social media, and start-ups. These people have substantial purchasing power.

• An Increase in Lifestyle Investments

  Today, affluent buyers are driven by their desire to acquire a home, expand their living space, and purchase second homes to improve their lifestyle.

• HNIs and UHNIs

  Real estate represents a long-term hedge against inflation for those with high net worths and ultra-high net worths (UHNIs). Increasing raw material prices, such as steel and cement, suggest that property prices will likely rise soon, making it an ideal investment opportunity.

• Growing Income and ROI

  NRI investments have significantly impacted Mumbai's luxury real estate growth since Mumbai's ROI growth rate has been among the best for many years. Rental, commercial, and residential investments have benefited from increased appreciation value. This phenomenal growth in investment returns has motivated NRI investors and potential buyers to make their mark on Mumbai projects. And also, in response to strengthening the US Dollar against the Indian Rupee, there has been increased demand from Non-Resident Indians (NRIs).

• The Cap on Capital Gains

  The government's decision to cap capital gains at ten crores (as announced in the Union Budget) might have contributed to an increased demand for luxury homes. Due to this, big cities like Mumbai-MMR, Delhi-NCR, Hyderabad, Pune, and Bangalore have seen the highest demand for luxury real estate among all metro cities, with MMR and NCR accounting for over 50% of sales.

Conclusion

Mumbai’s luxury real estate housing market in 2023 is expected to undergo substantial changes driven by various trends and factors. There were several localities in Mumbai where luxury homes were sold for more than ten crores. A significant contributor to luxury home sales in Q1 2023 is Mumbai's Mahalaxmi, a locality in south Mumbai. The impeccably designed luxury residence like Piramal Mahalaxmi is an excellent choice for people looking for a beautiful luxury residential property in Mumbai.

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