Mumbai becomes the Hero of Luxury Real Estate, boasts 40% of total sales

The luxury real estate market of India is flourishing, as it recorded a 10 percent year-on-year (Y-o-Y) development in overall deals during the primary quarter Q1 of 2024, as per a report by leading real estate consulting firm, CBRE. 

This growth comes amid a strong residential market overall, with nearly 85,000 units sold in the first quarter of 2024, an increase of 8 percent from the previous year. 

The luxury section lodging units are estimated upwards of Rs. 4 crore & Mumbai recorded the biggest number of luxury real estate deals with in excess of 1,300 units in Q1 2024. 

Between January & March of this year, there was also a 64 percent year-over-year increase in new luxury segment unit launches.  

Over the total sales, Mumbai arose as the leading performer in the segment of luxury real estate seeing a 15 percent year-on-year in deals. With its premium locations like Altamount Road, Nepean Sea Road, Bandra, and Worli, the city attracts high-net-worth individuals - HNIs & ultra-high-net-worth individuals - UHNIs. The city has over 40 percent of the country’s total luxury housing inventory. 

These regions acquires high costs, with average property estimations ranging from Rs. 20 crore to over Rs. 60 crore. Occasionally, apartments evaluated above Rs. 100 crore are additionally recorded. 

Regarding to this, the report states, "The resurgence in India’s luxury residential real estate has spurred robust growth, as about 45 percent of the overall luxury stock was injected in the last five years alone. The segment has also grown at a CAGR of over 9 percent since 2019 across the gateway cities”.

Pointing out this subject, Anshuman Magazine, Chairman  & CEO of CBRE - India, South-East Asia, Middle East & Africa says, "The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power. These factors are anticipated to cultivate a segment characterized by discerning buyers prioritizing quality, financial prudence, and a desire for an elevated living experience”.