Mumbai’s high-end residential market is set to remain buoyant, driven by strong demand from high-net-worth individuals (HNIs), non-resident Indians (NRIs), industrialists, and top executives. According to a recent report by JLL, ongoing infrastructure developments in the city are expected to enhance connectivity, making premium living spaces more accessible and maintaining elevated demand for luxury properties.
The report highlights that new high-end apartment launches will likely enter the market at higher price points, further supporting price growth. With robust sales continuing, developers are expected to raise prices for successful projects, contributing to a faster rate of capital value appreciation year-on-year.
Demand Remains Strong in Prime Locations
High-end apartment sales in Mumbai have reached new heights, as buyers continue to favor spacious homes in coveted areas. Locations such as Lower Parel, Worli, and Bandra have seen significant interest from HNIs, industrialists, executives, and celebrities. These buyers are particularly drawn to large, luxurious properties in prime neighborhoods, further driving up demand in the market.
Among the submarkets, Navi Mumbai has emerged as a strong performer, accounting for 19.3% of total high-end sales. It was followed by Thane and the Western Suburbs II. South Central Mumbai and Eastern Suburbs also saw all-time high sales, indicating sustained demand across multiple areas of the city.
Record New Launches in High-End Segment
In the third quarter of 2024, the high-end segment saw an impressive surge in new launches, with a total of 8,645 units entering the market, marking a significant 51.7% quarter-on-quarter growth. This was the highest quarterly launch volume recorded in the city’s high-end residential market. The Thane submarket led the charge, accounting for 32.8% of new launches during the period.
Notably, South Mumbai, South Central Mumbai, Eastern Suburbs, and Thane all experienced a rise in new project launches, while other submarkets showed a slight decline in activity. Around 18% of the new launches in Q3 fell within the INR 30 to 50 million price range, underscoring the growing appeal of mid-to-high luxury properties.
Steady Growth in Capital Values and Rent
Capital values in all submarkets saw a marginal increase of 0.4-0.8% quarter-on-quarter, with demand for premium apartments remaining strong. Thane recorded the highest price growth, followed by North Mumbai, Navi Mumbai, and the Eastern Suburbs.
Rents also showed a positive upward trend in Q3, with the Navi Mumbai submarket seeing the highest rental growth. This growth was largely driven by the expansion of the office sector and ongoing infrastructure projects, which have enhanced the appeal of residential properties in the area. Increased office space demand has contributed to the rising need for apartments, further boosting rental prices.
Outlook for Mumbai’s High-End Market
With strong demand from affluent buyers, a steady influx of new launches, and continued infrastructure development, Mumbai’s high-end apartment market is expected to experience sustained growth in the coming quarters. Capital values are set to rise at an accelerated pace, supported by strategic location preferences and a favorable economic environment. As luxury living becomes more desirable and accessible, the city’s high-end real estate sector is poised to continue its upward trajectory.
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