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Luxury property sales in Mumbai jump more than two times in 2021: India Sotheby’s International Realty

Mumbai saw sales of luxury housing properties worth Rs 9,492 crore. In terms of volumes, sales were 1,214 units as compared to 548 units in the previous year, the report noted.

Sales of luxury residential properties priced at over Rs 10 crore each in Mumbai jumped more than two times in 2021 at Rs 20,255 crore driven by rising demand for bigger homes with better amenities and low mortgage rates, according to a joint report by India Sotheby’s International Realty (SIR) and CRE Matrix.

India Sotheby's International Realty recently deepened its proptech-led offering with a strategic investment in CRE Matrix, a deep analytics platform for residential and commercial real estate.

Mumbai saw sales of luxury housing properties worth Rs 9,492 crore. In terms of volumes, sales were 1,214 units as compared to 548 units in the previous year, the report noted.

The top luxury micro-markets in Mumbai are Worli, Lower Parel, Bandra, Tardeo, Prabhadevi and Andheri. Worli alone makes up about 20 per cent of the Mumbai luxury market, it said.

In Mumbai, two-thirds of sales were primary (fresh sales) and the rest one-third secondary (re-sale). As per data, 848 units were sold in primary market for Rs 13,549 crore during 2021 as against 349 units worth Rs 6,275 crore in the previous year.


In Mumbai's secondary market, 366 units were sold for Rs 6,706 crore during the last year as compared to 199 units for Rs 3,217 crore in 2020.

"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 of 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 Maharashtra, added Chadha.

"Housing prices have remained more or less stagnant for the last 5-6 years across all segments and price brackets. Well informed HNIs 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 of 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," said Gupta.

In Mumbai the sweet spot for a luxury home was Rs 16 crore while in Pune it was Rs 6 crore, he said, adding that the surprising trend that emerged from the Mumbai luxury market was the fact that Andheri West is now among the top five markets for luxury real estate.

The 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 March quarter.

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Moneycontrol News
first published: Apr 29, 2022 01:08 pm
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