Luxury homes priced above ₹50 crore and above witness a 1.5X y-o-y increase; Mumbai dominates demand

Mumbai leads with a total of at least 29 luxury homes sold worth ₹3,031 crore. Delhi NCR followed with at least 12 units sold worth ₹1,043 crore

Luxury homes priced ₹50 crore and above have seen a surge in sales value from ₹2,859 crore in 2022 to ₹4,319 crore in 2023, an increase by almost 1.5X. Mumbai witnessed the maximum number of transactions on the back of demand for luxury properties, an analysis by JLL has said.

Luxury homes priced ₹50 crore and above have seen a surge in sales value from ₹2,859 crore in 2022 to ₹4,319 crore in 2023, an increase by almost 1.5X. (Picture for representational purposes only) (Pexels)

The combined sales for the years 2022 and 2023 in the luxury residential market recorded a substantial value of around ₹7,177 crore. At least 45 luxury homes were sold in 2023 as compared to 29 homes in 2022. Out of the 45 luxury homes sold in 2023, 14 homes were in the price segment of ₹100 crore and above, with majority (79%) of them in Mumbai.

Mumbai led with a total of at least 29 luxury homes sold worth ₹3,031 crore. Delhi NCR followed with at least 12 homes sold worth ₹1,043 crore. Bengaluru also saw at least four such transactions with a total sales value of ₹245 crore, it said.

Apartments accounted for 58% of the total luxury homes sold, while bungalows comprised the remaining 42%, it noted. These encompassed both primary market and resale transactions.

The luxury residential market showcased its resilience and vigor, with a combined sales value of around ₹7,177 crore for the years 2022 and 2023. This upward trajectory in sales reflects the strong economic fundamentals of the luxury real estate market and the rising demand for distinctive living experiences among affluent home buyers, it showed.

Mumbai leads demand for luxury homes

Mumbai witnessed most transactions, primarily in the Malabar Hill and Worli micro markets. Golf Links and Vasant Vihar were the top performing submarkets in terms of luxury residential sales in Delhi NCR. Gurgaon also saw a couple of luxury apartment transactions. The average size of apartments sold increased by 18% compared to the previous year, indicating a preference for larger homes, the JLL analysis noted.

“The increase in the number of luxury residential transactions in 2023 demonstrated the robust demand for such high-end properties in India. Notably, out of the 45 luxury homes sold in 2023, 14 homes were in the price segment of ₹100 crore and above, with majority (79%) of them in Mumbai. The interest for such properties is expected to strengthen in future as there is both the aspiration for high-end bespoke living and the confidence of affluent buyers in the long-term value that these properties hold,” said Samantak Das, Chief Economist and Head Research & REIS, India, JLL.

Apartments account for 58% of the total luxury deals

It is interesting to note that in terms of transaction breakdown, apartments accounted for 58% of the total luxury deals, while bungalows made up the remaining 42%. Twenty-six apartment transactions were closed, the majority (92%) of them in Mumbai. Whereas most of the bungalow transactions were recorded in Delhi NCR.

“In the first two months of 2024, at least four homes priced at ₹50 crore and above have already been sold with a combined worth of ₹397 crore. We foresee an upward trend in luxury residential transactions in 2024. With a growing segment of high-net-worth individuals seeking exclusive and opulent living spaces, the demand for luxury properties is expected to surge. Moreover, with the growing number of HNIs in the country, the demand for these homes will grow further,” said Ritesh Mehta, Senior Director, and Head (North and West), residential services and developer initiative, JLL India.