Luxury homes are driving housing sales across MMR

Manju Yagnik,

Vice Chairperson, Nahar Group and Senior Vice President, NAREDCO - Maharashtra

The demand for luxurious residences that offers a unique living experience has been growing in the Mumbai Metropolitan Region (MMR) market over the last few years. An increased number of high-net-worth individuals, rapid urbanization, and rising incomes are just some factors contributing to that growth.

According to recently released statistics from market research done by Anarock, the MMR's high demand for luxury properties has prompted a substantial fall in unsold inventories of such homes during the March quarter. To this research, the number of unsold homes costing more than Rs 2.5 crore decreased from 20,480 units in Q1 2023 to 15,520 units in Q2 2023—a 24% annual decline. Before Covid Q1 2019, MMR's luxury stock comprised around 23,130 units.

Several factors are driving the growth of the luxury home market in MMR. One factor is the strong economic performance of the region. The MMR is home to some of India's largest and most successful businesses, leading to a rise in disposable incomes among high-net-worth individuals. Many new start-up founders with high valuation are joining the clique every day. This, in turn, has created a demand for luxury homes.

Also driving the growth of the luxury home market is the increasing number of NRIs (Non-Resident Indians) looking to buy homes in India. The favourable exchange rate between the Indian rupee and the US dollar has made it more affordable for NRIs to buy homes in India, and many of them are opting for luxury homes in the MMR. NRIs engage in real estate in India for their use, as investors, or as rental properties. The majority of these NRIs are among India's UHNIs from overseas. The surge in customer interest and trust will likely lead to new heights in the luxury housing market this year.

The increasing hybrid work culture contributes to the demand for luxury homes. As hybrid work cultures have become more prevalent, there has been an increase in the demand for larger homes with workstations. Homebuyers want properties with extra office space and facilities to promote a comfortable and effective working environment. Consequently, investing in opulent real estate has increased greatly in value.

Overall the idea of luxury living has changed over time; modern customers seek to live in settings with good connectivity and various work-live-play options. Individualized and fully serviced properties with maintenance, concierge services, upscale facilities, cutting-edge security, and other essential amenities have become more common in the luxury living market. This is due to the fact that consumers are starting to recognise the value that such services and these homes offer as investments. Additionally, today's homebuyers look for bigger houses with flexible floor plans, designated workplaces, more windows and ventilation, outdoor spaces, and other amenities that enhance their general well-being. New-age purchasers are drawn to properties with a robust social infrastructure, including the best foreign schools, hospitals, retail locations, banks, and more.

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