Mumbai’s rich & famous are buying luxury homes for maximum money

• Luxury homes that cost over ₹10 crore, clocked in sales to the tune of ₹11,400 crore in the first half of 2023.
  
• The preference for 4,000-8,000 square feet homes tripled in the first half of 2023 as compared to 2018, says a report by Sotheby’s International Realty and CRE Matrix.
  
• Real estate has made a meaningful comeback to UNHI portfolios, says Sotheby’s.
  

What’s common between DMart promoter Radhakrisha Damani and Alia Bhat? Well, apart from being highly successful in their own spheres – business and show biz – they’ve also recently bought luxury homes in the Maximum City.

While billionaire Damani spent a whopping ₹1,238 crore for a property at Oberoi Three Sixty West in Worli, Bhat splurged ₹37.8 crore for an address at Aerial View CHSL in Bandra West.

Apart from these two, JP Taparia and family who own Famy Care Group, Dubai businessman Jay Mahtani and fashion designer Sandeep Khosla are a few of the big names that have snapped up luxury homes this year. What's more? This tribe, which spends mega bucks for large, spacious homes with spectacular views, is only growing, says a report by Sotheby’s International Realty and CRE Matrix.

Luxury homes are defined as those that cost over ₹10 crore and the first half of 2023 has seen sales of a whopping ₹11,400 crore in this segment.

“Mumbai had been witnessing around ₹5,300 crore of luxury sales every half year, since 2018. In H1 2023, this number more than doubled to ₹11,400 crore, surpassing even the annual sales of 2018 – 2020,” says Sotheby’s.

Amit Goyal, MD India at Sotheby’s International Realty believes that this indicates that real estate has made a meaningful comeback to ultra high-networth individuals’ portfolios.

“With wealth creation in India growing at a fast pace, and the country’s wealthiest city Mumbai set to enter the list of top 20 cities with the most number of millionaires by 2023, we believe there’s an inherent strength in Mumbai’s luxury housing market which should continue in the future,” said Goyal.

Size does matter

Sales of homes that cost around ₹10-20 crore made up for around 71% of sales in the luxury segment, but there has been good traction in homes that cost ₹40-70 crore too, as per the report.

Nine homes that cost over ₹70 crore were sold in the first half of the year, while 10 such sold in all of 2022, the report says.

In the world of luxe, the size of homes is also growing, as per the report. Most of the luxury homes sold were in the 1,000-2,000 square feet range while the preference for 4,000-8,000 square feet homes tripled in the first half of 2023 as compared to the same period in 2018.

“The Richie Rich is now eyeing larger homes than ever before with a clear preference for ocean views, higher floors and amenities galore,” says Abhishek Kiran Gupta, co-founder & CEO, CRE Matrix & IndexTap.