The city of Mumbai emerged as the leader in this segment, witnessing a total of at least 29 luxury homes sold, with a combined value of Rs 3,031 crore.
The real estate market in India experienced a remarkable increase in the sales value of luxury homes priced at Rs 50 crore and above, reaching Rs 4,319 crore in 2023, a significant increase of approximately 1.5 times compared to the value of Rs 2,859 crore recorded in 2022, according to JLL.
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This surge in sales value was accompanied by a rise in the number of transactions, with at least 45 luxury homes sold in 2023, compared to 29 homes sold in the previous year. Out of the 45 transactions, 58% were apartments and the rest 42% were bungalows.
The city of Mumbai emerged as the leader in this segment, witnessing a total of at least 29 luxury homes sold, with a combined value of Rs 3,031 crore. Delhi NCR followed closely with at least 12 luxury homes sold, worth Rs 1,043 crore. Bengaluru also witnessed at least 4 transactions in this segment, amounting to a sales value of Rs 245 crore.
The luxury residential market showcased its resilience and vigour, with a combined sales value of around Rs 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.
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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.
Looking at the combined sales for the years 2022 and 2023, the luxury residential market recorded a substantial value of around Rs 7,177 crore.
According to Dr. Samantak Das, Chief Economist and Head Research & REIS, India, JLL, “The increase in 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 Rs 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.”
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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, 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 Rs 50 crore and above have already been sold with a combined worth of Rs 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 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.
