Ultra-luxury Home Sales Remain Strong In 2024, Mumbai Dominates Market With 84% Share

Despite rising property prices, the sale of ultra-luxury homes, those priced over Rs 40 crore, has continued to thrive in 2024, ANAROCK observed in a recent report.

As per the report, the average ticket price of homes priced above Rs 40 crore has witnessed a 2 per cent rise in the last 8 months from Rs 1,00,208 per square feet (sq. ft.) in 2023 to Rs 1,02,458 per sq. ft. in August 2024.

According to the observation, a total of 25 such homes were sold across Mumbai, Hyderabad, Gurugram, and Bengaluru in the first eight months of the year, generating a collective sales value of approximately Rs 2,443 crore.

In contrast, cities like Pune, Chennai, and Kolkata witnessed no sales in this exclusive price bracket.

Anuj Puri, Chairman of ANAROCK Group, noted, "The whole of 2023 saw about 61 deals with a cumulative sales value of approx. Rs 4,456 crore in Mumbai, Hyderabad, and Gurugram. With four months remaining in 2024 and the festive quarter from October to December ongoing, we are likely to see more such large ticket-size residential deals happening before the year is through."

Of the 25 homes sold so far this year, 20 were high-rise apartments with a combined value of Rs 1,694 crore, while the remaining five sales consisted of bungalows, cumulatively worth about Rs 748.5 crore.

Mumbai continued to be the most active market for ultra-luxury homes, recording 21 of the 25 sales in 2024, valued at Rs 2,200 crore an impressive 84 per cent share of all deals in this segment. High-net-worth individuals (HNIs) and ultra-HNIs are drawn to Mumbai despite its status as India's most expensive residential market, purchasing properties for personal use, investment, or both.

"A deeper dive into the data reveals that homes priced above Rs 100 crore have seen a 14 per cent price jump in the last eight months alone from Rs 1,24,697 per sq. ft. at the end of 2023 to Rs 1,41,904 per sq. ft. in 2024 till date. This double-digit price appreciation in this segment even before the year concludes stands testimony to the unrelenting appetite for trophy homes.

While Mumbai accounted for the majority of ultra-luxury home sales, other cities also saw limited activity. Hyderabad recorded two sales in Jubilee Hills, collectively valued at Rs 80 crore. Gurugram in the National Capital Region (NCR) witnessed one sale worth Rs 95 crore, and Bengaluru closed a deal for an ultra-luxury home valued at Rs 67.5 crore.

Interestingly, out of the 25 ultra-luxury deals in 2024, nine were for homes priced over Rs 100 crore, with a combined sales value of Rs 1,534 crore. This contrasts with the 10 large-ticket deals in 2023, which had a total sales value of Rs 1,720 crore. The final four months of 2024 could set a new record in this high-end segment.
 

Apartments remained the preferred choice for wealthy buyers, accounting for 20 of the 25 deals. Businessmen made up 80 per cent of the total buyers, while senior professionals from various sectors represented 12 per cent. Bollywood celebrities and top legal and medical professionals completed the remaining 8 per cent.

According to the data, since the pandemic, demand for ultra-luxury homes has surged, leading developers to increase the supply of such high-end properties. Over the last three years 2022, 2023, and 2024 more than 99 ultra-luxury residential deals worth approximately Rs 8,069 crore were finalised in top cities.
 

In 2022 alone, 13 ultra-luxury homes were sold for a combined value of Rs 1,170 crore. The majority of these sales (11) took place in Mumbai, with the remaining two in Delhi-NCR. Nine of the 13 homes sold that year were priced between Rs 100 crore and Rs 150 crore, all located in Mumbai.

With ultra-luxury home prices continuing to rise and demand remaining strong, the market for high-end properties is set to remain robust through the remainder of 2024 and beyond, the report added. (ANI)