 "How Mumbai has broken into world’s top 10 luxury real estate markets")
‘Roti, kapda aur makaan’ are the three necessities of life, we were once told. However, in Mumbai, for many, it is ‘roti, kapda aur luxurious makaan’. The Knight Frank’s The Wealth Report 2024, has ranked the megacity among the top 10 luxury residential markets in the world.
The report has ranked Mumbai at number eight in their list, while Delhi and Bengaluru occupy the 37th and 59th rank on the listings.
But how much has Mumbai’s luxury real estate market grown? And what’s fuelling this growth? We explore this and give you the answers.
Luxury real estate rankings
Mumbai, which is India’s largest and most expensive luxury real estate market, has been accorded the eighth rank in Knight Frank’s The Wealth Report 2024. This opposed to the 37th rank it occupied in 2022.
The report stated that $1 million (Rs 8.24 crore) in Mumbai would help you acquire a 1,108 square feet of prime residential space. However, in Monaco, which continues its reign as the world’s most expensive city, $1 million will get you only 172 sq ft of space. Similarly, in Hong Kong, it would get you 236 square feet and in Singapore it would be 344 square feet.
The luxury property market of Delhi has also seen a rise and has been ranked 37th, as compared to 77th rank in 2022, recording an annual price rise of 4.2 per cent year-on-year in 2023. Bengaluru stands at 59th rank compared to 63rd in 2022 recording a 2.2 per cent increase.
Impact Shorts
More ShortsShishir Baijal, CMD, Knight Frank India, told Economic Times, “Mumbai’s ascent to the eighth rank globally, with a staggering 10 per cent on-year increase in luxury residential prices, underscores the city’s enduring appeal. While Mumbai logged into the top 10 league among PIRI 100 cities, Delhi and Bengaluru also demonstrated positive momentum by improving their ranks.”
He added that the firm predicted a bright future of Mumbai in 2024 with a 5.5 per cent prime price growth forecast.
Mumbai’s big, big real estate deals
Maximum City’s rise in ranks in the luxury real estate sector has been driven by tony properties selling like hotcakes in the previous year. In fact, according to a LinkedIn report, close to 3,000 new luxury apartments worth over Rs 38,000 crore were sold in Greater Mumbai in 2023. And there were some notable purchases.
For instance, in March of 2023, chairman of Bajaj Auto, Niraj Bajaj, purchased an 18,000 sq ft triplex in Mumbai’s Walkeshwar area for a whopping 252 crore. Prior to that, in February last year, Welspun Group Chairman B K Goenka bought a 30,000 square feet penthouse in Mumbai’s Worli for Rs 240 crore. At that time, Pankaj Kapoor, founder and MD of real estate rating and research firm Liases Foras, had told Times of India, “This is the costliest apartment sold to date in India.”
In July, Bollywood film producer and director Dinesh Vijan bought a luxury duplex apartment spread over nearly 7,800 sq ft in Mumbai’s Bandra suburb for nearly Rs 103 crore. Siddharth Jain, part of INOX Group’s promoter family also spent Rs 144 crore for a sea-view luxury quadruplex apartment in Worli.
**Also read: A look at Ranveer-Deepika's new purchase and other expensive homes in India**As real estate experts note, the Mumbai market has seen a consistent increase in premiumisation. According to a Moneycontrol report, from January to November 2023, the share of property registrations valued at Rs 1 crore and above rose from 54 per cent in 2022, to 57 per cent in 2023.
And another report from last year revealed that of the 58 ultra-luxury homes, costing more than Rs 40 crore, that were sold in India last year until November, 53 were from Mumbai. The research report by Anarock further revealed that at least three deals were above Rs 200 crore, seven were in the Rs 100- Rs 200 crore price bracket.
Why Mumbai’s real estate is on fire
There are a number of reasons why Mumbai’s luxury real estate market is growing at such a good pace. The surge can be attributed to the rise of ultra-high-net-worth individuals in the financial capital investing in Mumbai’s real estate. In fact, Knight Frank had stated that 32 per cent of India’s ultra-rich individuals (those with a net worth of $30 million and above) invest their wealth in residential real estate.
India’s consistent growth and stability is another reason why luxury real estate sales have risen.
Some experts also note that infrastructure projects are also helping Mumbai’s real estate market. For instance, it is speculated that the Mumbai Coastal Road Project, which aims to connect Marine Lines in the south to Kandivali in the north, will revolutionise the city’s real estate landscape, especially in the western suburbs.
The Mumbai Trans Harbour Link is another example of an infrastructure project that would help boost sales of luxury apartments.
There’s also the fact that Mumbai is the city’s financial and entertainment capital of India. Big business houses and Bollywood stars continue to maintain their base in Mumbai.
Hence, Mumbai continues to be the leader in luxury real estate, but experts note that other cities like Gurugram, could soon rival Mumbai. But for now, it’s Mumbai, the concrete jungle where dreams are made.
With inputs from agencies
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