According to reports, luxury housing sales in Mumbai and Pune have been high for four years. It increases trust in the overall economy, improved quality of construction, and enhanced amenities in high-end projects have fueled the demand over the last two years.
In 2021, the largest luxury home sales were in Mumbai (Rs 10 crore) and Pune (apartments costing above Rs 5 crore). According to joint research by India Sotheby’s International Realty and CRE Matrix, they may establish a new record in 2022.
According to CRE matrix data, 1,214 luxurious flats in Pune valued at Rs 20,255 crore were sold in 2021, compared to 598 units valued at Rs 9,872 crore in 2018.
Last year, Mumbai’s luxury home market performed exceptionally well. It is consistent with the sales pace for luxury residences worldwide, especially in global gateway cities like London, New York, and Dubai. We believe we are merely beginning a full and bullish residential real estate cycle,” India Sotheby’s International Realty President Ashwin Chadha said.
Mumbai saw sales of luxury home properties worth Rs 9,492 crore in the preceding fiscal year. In terms of volume, luxury house sales in Mumbai increased to 1,214 units in 2021, up from 548 units the year before. Worli, Lower Parel, Bandra, Tardeo, Prabhadevi, and Andheri are the top luxury micro-markets in Mumbai.
Worli accounted for almost 20% of the whole Mumbai luxury market. The sales ratio in Mumbai’s primary and secondary markets is 2/3 primary and 1/3 secondary. In Mumbai’s secondary market (resale), 366 units were sold for Rs 6,706 crore during the last year as compared to 199 units worth Rs 6,275 crore in the previous year.
According to a real estate consultant in Pune, several reasons have supported robust sales, including discounts offered by builders and incentives provided by the Maharashtra government in stamp duty waivers, stated Chadha.
Similar patterns were observed in Pune, with 208 apartments worth Rs 1,407 crore sold in 2021 compared to 127 units worth Rs 832 crore sold in 2017.
For the past 5-6 years, housing prices have stayed rather stable across all segments and price ranges. HNI purchasers who are well-informed have taken advantage of this opportunity to purchase well-priced assets for wealth growth. CRE Matrix CEO and Co-Founder Abhishek Kiran Gupta stated that prices have risen.
During this epidemic, homeownership has taken on a whole new meaning. Consumers want to buy larger, nicer homes from reputable developers with a track record of completing projects on time. So HNIs and extreme HNIs took a much-needed break during the lockdowns to review and enhance their real estate property in Mumbai holdings.
The sales trend is expected to continue this year since 306 luxury housing units worth Rs 4,877 crore were sold in Mumbai during the January-March quarter of the calendar year 2022.
For roughly Rs 5.5 crores, India Sotheby’s International Realty (ISIR) purchased a 12 percent share in CRE Matrix, a data analytics platform for residential and commercial real estate. During the coronavirus pandemic, there has been a rise in demand for luxury houses, prompting the stake purchase.
In 2021, India SIR sold 182 luxury residences worth $280 million, up from 102 units worth $190 million. In terms of value, property sales increased by 47 percent, while volume increased by 78 percent.