Upscale Malabar Hill area, home to high net worth individuals in Mumbai recorded a staggering 79 per cent increase in premium housing sales over the last one year with the average carpet rate zooming to Rs1,01,650 per sq ft from Rs. 95,240 per sq ft in the previous five years. This comes after a long period of stagnancy and lull.
“There is sudden spurt in price appreciation making this high end demographic zone which encapsulates Walkeshwar and Cumballa, competitive with other prominent micro markets like Worli, according to a study by Liases Foras, an independent non-broking real estate research company.
Liases Foras Director Pankaj Kapoor told the FPJ that Malabar Hill micro market has seen sales of 52 ultra luxury units in the last 12 months marking a 10 per cent appreciation in premium housing in Q3 OF 2023-24.
The report threw light on 14 different projects at different stages of construction by 12 A-listed developers that lie in this catchment. One of the top projects is Lodha Malabar, on Walkeshwar Road, which is expected to be completed by 2027. This project, Kapoor says sold 10 luxury units worth ₹1,202 crore between January and March 2023.
With top builders already active in the market, three more A-grade builders are in line to launch their projects.
Kapoor pointed out that Individuals who can afford a rate of ₹1 lakh per sq ft have aspirations for bigger luxurious spaces; the demand quotient is high with demographic density of Malabar Hill having its own pull attracting the super rich.
Infrastructure projects upped the real estate prices in area
One of the prime reasons for price appreciation of this zone is the upcoming infrastructure projects taking shape in South Mumbai. The Cuffe Parade to Seepz underground Aqua Metro Line and the Coastal Road Project are expected to improve connectivity to this area which has been home to the city’s richie rich for decades!
The study pointed out that the Girgaon metro station is at a distance of 2.1 km from Malabar Hill, via Walkeshwar Road. It will take a seven-minute commute between the two points. It will take 11 minutes to commute from Malabar Hill to Grant Road by metro. Similarly, the Coastal Road will connect Kandivali in north Mumbai to Marine Drive in the south, increasing footfall from the western suburbs.
According to the report, the new housing supply infused into this micro market increased from 14 units in 2019, 95 in 2020, 31 units in 2022 to 64 in 2023. The sales stood at 17 units in Q3 of 2019 which increased to 29 in Q3 2022 in the post-Covid recovery and jumped to 52 in Q3 of 2023. The unsold inventory which stood at 248 units in 2019 came down to 146 units in Q3 of 2023.
According to Kapoor, in 2022, market dynamics saw the average weighted carpet area price of Malabar Hill gradually decline from ₹95,240 per sq ft to ₹92,718 per sq ft. But for the first time in five years the recent momentum in sales and supply has propelled the average price to cross ₹1 lakh per sq ft.
4BHKs are preferred choice among buyers
The analysis of the carpet area and ticket sizes indicated that 4BHKs were the preferred choice with 67 per cent sales in this segment. Ultra luxury homes with carpet area size between 2,400 to 2,700 sq ft in the price bracket of ₹30-35 crore were hot favourites.
The base price analysis showed that 13 of the 52 units were sold in the ₹30-35 crore price bracket followed by 10 sold in the ₹45-50 crore and six in the ₹95-100 crore. 35 of these units were 4BHKs and maximum marketable supply of 150 units came in this segment. Seven homes sold in last 12 months were in 5HK, four were duplex, one 6BHK duplex, one 5BHK penthouse and two triplexes, the report said.
Kapoor pointed out, “Prices were not appreciating in this market between 2016 and 2021 because the high net worth individuals were not locking their money in real estate assets. We are now out of this price correction regime. The growth in HNI wealth has also seen them investing in everything from luxury homes to luxury products and booking profits.”
He added, “This momentum will continue with an average price appreciation of at least 5 per cent to 6 per cent in Malabar Hill for next two years”.
