Buying a house in a city like Mumbai is a dream for millions in the city and a marker of success in climbing the social ladder for celebrities and CEOs alike. Mumbai, the city with India's most treasured real estate, is also the second most pricey in Asia Pacific after Tokyo and is the 18th most expensive globally. In dollar terms, one can afford a 113 square metre space in the maximum city for $1 million (Rs 8 crore), which is little more than a 4 bedroom hall kitchen flat.
Luxury housing prices in Mumbai have surged by 6.4 per cent, which is higher than the 5.2 per cent spike in rates globally. Even though new property registrations were down by 8 per cent in volume, the collection from them were up 79 per cent in February. This is because of a large number of luxury, high-end flats being sold in the city.
The reason behind this could be the government's announcement to tax capital gains of more than Rs 10 crore from real estate from April 2023. Which means now investing proceeds of real estate sales in another property won't help save taxes after April. The sales are also surging as prices of prime properties in the financial capital are expected to go up by 3 per cent.
