Malabar Hill regains its marquee address status as supply quality, infrastructure improve

Large developers are inking deals to develop housing societies or vacant land in Malabar Hill, one of India's most expensive neighbourhoods

The upscale Malabar Hill neighbourhood in south Mumbai, home to the city's economic and political elite, is once again regaining its status as the most aspirational address, with a surge in deal activity from both developers and buyers, according to real estate experts.

The micro-market, written off over the past five to six years due to slow sales, is back in the reckoning owing to new supply entering the market and improved infrastructure after years of construction activity, they said.

Since the beginning of the year, multiple key deals have been reported in Malabar Hill, both on the homebuyers’ side, as well as from the developers keen to secure more redevelopment deals and some of the scarce land in the area.

In January, fantasy gaming app Dream11's founder Harsh Jain purchased a Rs 138 crore apartment at the landmark Lodha Malabar project in the area, while more recently, an entity named Vageshwari Properties purchased a historic bungalow in the area for Rs 276 crore.

On the developers’ side, K Raheja Homes is slated to redevelop the Pleasant Palace housing society, which can have a development potential of 3 lakh square feet, according to JLL, which brokered the deal. And last week, the Adani Group, which has been expanding its presence in Mumbai's real estate market, entered the luxury market in Malabar Hill by purchasing a 1.1 acre land parcel for Rs 170 crore, taking ownership of one of the few available greenfield land parcels in the neighbourhood.

However, new supply remains limited, according to local brokers, even as several large developers, including listed players, continue talks with housing societies for redevelopment opportunities in the area.

Making a comeback

Malabar Hill is one of the most expensive neighbourhoods in the world, with current home prices in the range of Rs 1.3 lakh to Rs 1.5 lakh per square foot. However, in recent years, luxury homebuyers looked elsewhere in south Mumbai, and even in the suburbs, as the area lost some of its sheen due to its ageing supply, falling behind in terms of quality as compared to new developments.

"In prime areas like Malabar Hill, the supply of high-end products had shrunk by 2019 during the down cycle, which is also one of the reasons why demand there took a hit. However, newer and better quality of supply is now coming to the market, and infrastructure in the region is also witnessing a transformation providing a boost to the potential of this market," said Vivek Rathi, national director of research at Knight Frank India.

In recent years, developers such as Lodha (Macrotech) and Kalpataru, as well as others, have tried to buck the trend at Malabar Hill through new developments in the luxury and ultra-luxury segment. Due to low levels of new-age supply in the area, most of these developments have been sold out within a short while of their launches. Demand has also improved as the much-awaited Coastal Road has reached completion, significantly slashing journey times to and from the area, observers said, with other major infrastructure projects, seen as hindering access to the area, also nearing completion.

Despite the overall housing market showing signs of slow growth, developers have also been encouraged by the continued sales momentum in the luxury and ultra-luxury categories across India, particularly in Mumbai, with Malabar Hill being one of the leaders of that drive. In a recent report, JLL noted that the number of homes worth Rs 100 crore or more nearly doubled year-on-year in 2024.

"Of the 49 (ultra-luxury) homes sold during the last 3 years, Mumbai comprised 69 percent share followed by Delhi NCR. In Mumbai, Malabar Hill and Worli dominated the bulk of these transactions," said Siva Krishnan, head of residential services at JLL India.