Updated March 21st, 2024 at 03:02 IST

Mumbai soars to 8th position in Global Luxury Real Estate Index with 10% price surge

This jump to the top 10 from its previous 37th position reflects the city's rapid economic growth and increasing demand for high-end properties.

Reported by: Business Desk
Real estate | Image:Pixabay
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Mumbai real estate: Mumbai has emerged as a global powerhouse in luxury real estate, securing the 8th spot in Knight Frank's Wealth Report 2024. This jump to the top 10 from its previous 37th position reflects the city's rapid economic growth and increasing demand for high-end properties, with property prices rising by 10 per cent over the last year. 

The Mumbai Metropolitan Region (MMR) also reported a 40 per cent increase in housing sales in 2023, leading to the completion of new housing projects in major Indian cities. These trends indicate a strong market and high consumer confidence in luxury real estate.

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Mumbai: Half of India's real estate

Aakash Ohri, Joint Managing Director & Chief Business Officer at DLF Ltd, stressed the importance of a rise in realty, commenting, "Mumbai, the financial and entertainment capital of India, has ascended into the top ten of the world's luxury real estate markets, supported by continuous demand for high-end properties and economic growth." Ohri told Republic Business that Mumbai's representation is of nearly half of India's residential real estate market.

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"This dominance highlights the vast demand and opportunity present within this historic and mature market, which remains resilient against short-term trends. The city has experienced a steady shift towards luxury transformation, primarily fuelled by increasing investments from ultra-high-net-worth individuals," Ohri added. 

"Furthermore, the recent infrastructural developments like the Mumbai Trans Harbour Link are poised to further boost the demand for luxury housing, enhancing the city's appeal to those seeking opulence and exclusivity in their living spaces,” he further said.

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India's economic resilience

Mumbai's rise in the global luxury real estate rankings is an achievement that highlights the city's increasing integration and prominence in the global market. This development is a part of the larger narrative of India's economic growth and resilience, positioning the nation as a strong player in the global real estate sector, say experts. 

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India's ultra-high-net-worth individuals (UHNWIs) are notably contributing to this trend, with an average of 2.57 homes owned per individual and a significant portion looking to expand their portfolios in 2024. This reflects a bullish sentiment towards real estate investment within the city.
 

Luxury home | Image credit: Pixabay


“Mumbai's real estate market, often touted as one of the most dynamic in the country, is leading India’s new wave of real estate demand and development opportunities. Being India's largest housing market, MMR contributes to 37 per cent of total residential sales by value of the Top-7 cities," said Mohit Malhotra, Founder & CEO, NeoLiv.  

"Increased need for professionally driven and well-funded developers will further establish Mumbai's real estate market as the most attractive in the country. The surge in property registrations, bolstered by festive fervour, major upgrade in infrastructure and city-centric strategic initiatives, underscores the market's notable resurgence,” Malhotra added.

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Reflecting a global trend, the luxury real estate market has shown surprising resilience with an average price increase of 3.1 per cent in 2023, defying expectations amid economic challenges. This resilience is particularly pronounced in the Indian context, where the market has exceeded global averages, fuelled by a strong economy and a stable real estate environment. 

Delhi climbs to 37th, Bengaluru to 59th

Notably, Delhi and Bengaluru have seen improvements in their rankings, with Delhi rising to the 37th rank with a 4.2 per cent increase in luxury residential prices, and Bengaluru to 59th, marking a 2.2 per cent growth. This nationwide progress speaks volumes about the robustness and attractiveness of India's luxury real estate market, even amidst global economic uncertainties.


 

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Published March 21st, 2024 at 03:02 IST