Mumbai's ultra-luxury real estate market, featuring homes over Rs. 40 Crore, has seen a phenomenal 247% increase in sales value in 2023 compared to the previous year. Dominating the sector, Mumbai recorded 53 of the 58 high-end transactions in top Indian cities. The market, fuelled post-COVID-19, attracted predominantly businessmen and professionals, highlighting a shift in luxury housing demand. This surge underscores a significant recovery and transformation in the luxury real estate sector, marking a new era of upscale living preferences among India's wealthy populace.
The ultra-luxury real estate market, representing properties priced above INR 40 Crore, has witnessed a staggering 247% year-over-year increase in sales value in 2023. This remarkable surge in the luxury segment marks a significant deviation from the previous year's trends.
Mumbai, India's financial capital, has emerged as the prime location of this luxurious real estate boom. Out of at least 58 ultra-luxury properties sold in the top seven Indian cities this year, Mumbai accounted for a whopping 53 transactions, which is 91% of the total ultra-luxury real estate deals. These included at least three transactions exceeding INR 200 Crore, and seven between INR 100 - 200 Crore, all facilitated by ANAROCK, a prominent real estate consultancy.
Delhi-NCR also made its mark in this segment with notable sales, including two high-end apartments in Gurgaon and two extravagant bungalows in New Delhi, each surpassing the INR 40 Crore threshold. Additionally, Hyderabad witnessed a significant sale in Jubilee Hills, further underscoring the nationwide appeal of ultra-luxury properties.
Interestingly, apartments have been the preferred choice among High-Net-Worth Individuals (HNIs), as evidenced by the fact that 53 out of the 58 transactions involved apartments, while the remaining five were for bungalows. A majority of these buyers, approximately 79%, are businessmen, followed by 16% being senior professionals across various industries. The remaining 5% of buyers include politicians and Bollywood celebrities.
This upsurge in ultra-luxury real estate transactions is a direct consequence of the changing market dynamics post-COVID-19 pandemic, which has intensified the demand for luxury and ultra-luxury homes. When comparing the data from 2022 and 2023, it is evident that a total of 71 ultra-luxury residential deals, amounting to approximately INR 5,233 Crore, have been sealed in the top seven cities.
In contrast, 2022 witnessed 13 deals in this segment, cumulatively valued at around INR 1,170 Crore. Out of these, 10 were for apartments and 3 for bungalows, with 11 transactions in Mumbai and two in Delhi-NCR. It is noteworthy that the other five top cities did not experience such high-value deals in 2022. Of the transactions in 2022, nine were priced between INR 100 - 150 Crore and all of them were in Mumbai.
In conclusion, the year 2023 has proven to be a landmark year for India's ultra-luxury real estate market, particularly in Mumbai. The substantial increase in sales value reflects a robust post-pandemic recovery and a heightened demand for premium living spaces. This trend signifies not just a recovery but a remarkable transformation in the preferences and investment behaviours of India's affluent class.
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