India’s financial capital, Mumbai, has been experiencing a surge in its luxury real estate market. Billionaires are signing deals worth hundreds of crores for homes in luxury towers. In February 2023, industrialist B K Goenka, chairman of Welspun Group, purchased a penthouse in a Worli luxury tower for Rs 240 crore.
The same month, industrialist Niraj Bajaj, chairman of Bajaj Auto and promoter-director of Bajaj Group, bought a triplex in an under-construction tower at Walkeshwar for Rs 252 crore. This was described as the most expensive transaction in India. In March 2023, the Taparia family booked six luxury apartments in Lodha Malabar for Rs 369 crore.
Despite these record-breaking deals, experts say that luxury housing in Mumbai still only makes up a small percentage of the market. Only 1% of flats sold in Mumbai in March 2023 were priced above Rs 20 crore, while those priced between Rs 5 crore and Rs 10 crore comprised barely 4% of the sales.
However, Pankaj Kapoor, founder and MD of Liases Foras, a real estate research firm, reported a 76% increase in the new launches of units costing Rs 3 crore and above in 2022. While there were 19% fewer launches in the Rs 5 crore-10 crore segment, “units costing Rs 10 crore-20 crore and above saw a 142% increase in new supply during 2022”.
The unsold stock in Mumbai recorded a 57% increase from 2021 to reach 1,32,253 units, of which luxury housing made up 15% or 19,334 units.
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