Luxury Real Estate Market in India Witnesses 1.5X Year-on-Year Surge: Mumbai Leads Demand

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In a remarkable development, the luxury real estate market in India has experienced a substantial surge in sales value, particularly in the segment of luxury homes priced at ₹50 crore and above. According to an analysis conducted by JLL, the combined sales value of luxury properties soared from ₹2,859 crore in 2022 to ₹4,319 crore in 2023, representing an impressive increase of nearly 1.5 times.

The surge in sales was primarily driven by Mumbai, which emerged as the epicenter of demand for luxury properties. The city witnessed the highest number of transactions, with at least 29 luxury homes sold, amounting to a staggering ₹3,031 crore. Following Mumbai, Delhi NCR recorded significant activity in the luxury real estate sector, with at least 12 homes sold, totaling ₹1,043 crore in sales value.

The luxury residential market demonstrated resilience and robustness, with a combined sales value of approximately ₹7,177 crore for the years 2022 and 2023. This upward trajectory underscores the strong economic fundamentals of the luxury real estate market and the growing demand for distinctive living experiences among affluent homebuyers.

Mumbai's dominance in luxury real estate transactions was further highlighted by the fact that out of the 45 luxury homes sold in 2023, 14 homes were priced at ₹100 crore and above, with a majority (79%) of them located in the city.

In terms of property types, apartments accounted for 58% of the total luxury deals, while bungalows comprised the remaining 42%. Mumbai witnessed the majority of apartment transactions, while Delhi NCR saw significant activity in the bungalow segment.

The analysis also revealed an interesting trend indicating a preference for larger homes, as the average size of apartments sold increased by 18% compared to the previous year.

Looking ahead, experts anticipate a continued upward trend in luxury residential transactions in 2024. With a growing segment of high-net-worth individuals seeking exclusive and opulent living spaces, coupled with the increasing number of affluent buyers in the country, the demand for luxury properties is expected to surge further.

The luxury real estate market in India is poised for continued growth and presents lucrative opportunities for developers and investors alike, with Mumbai emerging as a key hotspot for luxury living experiences.