Mumbai sees surge in ultra-luxury home sales in 2024, dominating the Indian market

The market for ultra-luxury homes, priced at over Rs 40 crore, continues to thrive in India, with 25 such properties sold across Mumbai, Hyderabad, Gurugram, and Bengaluru in the first eight months of 2024. According to data from the real estate consultancy firm Anarock, these sales amount to approximately Rs 2,443 crore, with Mumbai leading the charge.

In a breakdown of the year’s ultra-luxury home sales, Mumbai claimed 21 of the 25 deals, contributing Rs 2,200 crore, or 84% of the total sales in this segment. The financial capital remains a magnet for high-net-worth individuals (HNIs) and ultra-HNIs seeking trophy homes, either for investment or personal use. Hyderabad recorded two deals worth Rs 80 crore, while Gurugram and Bengaluru each saw one ultra-luxury home sold for Rs 95 crore and Rs 67.5 crore, respectively.

Anuj Puri, Chairman of Anarock Group, emphasised the continued strength of this market. “In 2023, we saw 61 such deals with a cumulative value of approximately Rs 4,456 crore. With four months left in 2024, including the festive quarter, we expect more high-ticket sales before the year concludes,” he said.

The demand for ultra-luxury homes has not been deterred by rising prices. In 2024, the average price for properties priced over Rs 40 crore increased by 2%, while homes exceeding Rs 100 crore saw a significant 14% price jump. These larger properties, particularly in Mumbai’s South Central area and upscale neighbourhoods like Bandra and Juhu, remain highly sought after, with nine of the 25 deals this year exceeding Rs 100 crore each.

Apartments remain the preferred choice for buyers, with 20 of the 25 ultra-luxury deals being high-rise apartments, collectively worth Rs 1,694 crore. The remaining five sales were for independent bungalows, amounting to Rs 748.5 crore. Businessmen accounted for 80% of the purchases, while senior professionals, Bollywood celebrities, and legal and medical professionals made up the rest.

The trend of increasing demand for ultra-luxury homes has been on the rise since the pandemic. Between 2022 and 2024, 99 ultra-luxury residential deals worth over Rs 8,069 crore were closed in India's top cities. In 2022 alone, 13 deals worth approximately Rs 1,170 crore were completed, primarily in Mumbai.

With the festive season approaching and Mumbai continuing to dominate the market, the appetite for high-value properties shows no sign of slowing down. According to Anarock, 2024 may set new records in this segment as developers continue to cater to the growing demand for ultra-luxury homes across the country.