Sales of luxury housing units priced over Rs 10 crore in Mumbai jumped more than two-fold during 2021 at Rs 20,255 crore, on the back of low interest rates on home loans and increased demand for bigger flats, according to a joint report by India Sotheby's International Realty and CRE Matrix.
Mumbai saw sales of luxury housing properties worth Rs 9,492 crore in 2020. The figure incudes sales in both primary (fresh sale) and secondary markets (re-sale).
In terms of volumes, the total number of luxury housing units sold in Mumbai was 1,214 units during 2021 as compared to 548 units in the previous year.
The top luxury micro markets in Mumbai are Worli, Lower Parel, Bandra, Tardeo, Prabhadevi and Andheri. Worli alone contributes about 20 per cent of the overall Mumbai luxury market.
As per the data, 848 units were sold in Mumbai's primary market for Rs 13,549 crore during 2021 as against 349 units worth Rs 6,275 crore in the previous year. In the city's secondary market, 366 units were sold for Rs 6,706 crore during the last year as compared to 199 units valued at Rs 3,217 crore in 2020.
The ratio of sales in primary and secondary markets has been 2/3rd and 1/3rd, respectively.
"Mumbai's luxury housing market has performed exceedingly well during the last year. This is pretty much in line with the sales velocity for luxury homes we have witnessed across the globe, including global gateway cities like London, New York and Dubai. We believe this is just the beginning of a very positive and bullish residential real estate cycle," said Ashwin Chadha, President, India Sotheby's International Realty.
In Mumbai, several factors have aided strong sales, especially discounts offered by builders and incentives by way of waiver in stamp duty given by the Maharashtra government, added Chadha.
"Housing prices have remained more or less stagnant since the last 5-6 years across all segments and price brackets. The well informed HNI (High Net-worth Individual) buyers have used this as an opportunity to buy right priced assets for wealth creation. We are already witnessing prices firm up and starting to rise," said Abhishek Kiran Gupta, CEO and co-founder, CRE Matrix.
The concept of home ownership has gained tremendous importance during this pandemic. Consumers are looking to buy bigger and better homes from branded developers who have a decent track record of executing projects on time.
"During the lockdowns, HNIs and ultra HNIs got the much-needed break to analyse and strengthen their real estate portfolio," added Abhishek Kiran Gupta.
The sales trend is likely to remain buoyant even during this year as 306 luxury housing units worth Rs 4,877 crore have already been sold in Mumbai during the January-March quarter of 2022 calendar year.
Born from the rich heritage of the Sotheby's Auction House, Sotheby's International Realty (SIR) is present in 79 countries and territories with 1,000 offices and 25,000 sales associates. It achieved a record real estate global sales volume of USD 204 billion in the year 2021.
The brand established its presence in India by setting up its first office in New Delhi in July 2014. It now has offices in Delhi, Mumbai, Kolkata, Bangalore, Goa, Colombo, and the mandate for the Maldives.
CRE Matrix is a deep analytics platform for commercial and residential real estate. It offers real-time, comprehensive data over a cloud-based platform for smarter decision making in real estate