The real estate market of India is going through premiumisation and the luxury housing segment accounted for 41 per cent of sales growth in the first half of 2024 (January to June), according to a Knight Frank India real estate sector report. 

Mumbai’s luxury realty sector recorded a cumulative highest-ever half-yearly sales from luxury housing at 12,300 crore in the first half of the calendar year 2024, which is a 7.69 per cent rise when compared to 11,400 crore in the previous year in the same period, according to an India Sotheby’s International Realty and CRE Matrix report.

The luxury homes costing 10 crore and above are under this segment, and a total of 1,040 units were sold which is the highest in any 12-month period, as per the report.

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In Mumbai, the primary market (sale of new properties) recorded sales of 8,752 crore, the second-highest sales record in the last five years after H1 of 2023. The secondary market (sale of pre-owned properties) recorded a significant increase in sales of 38 per cent, at more than 3,500 crore in H1 2024, compared to the same period in the previous year.

Areas like Worli and Goregaon East were amongst the top localities in Mumbai, fuelling 80 per cent of this growth, as per the report.

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As the trend of buyers shifts to bigger and luxury housing, India Sotheby’s report also states that the customers who bought into this record sale fall under the age bracket of 35 to 55 years old.

“Mumbai’s luxury housing market is surging and has touched unprecedented sales highs in H1 CY2024. Its strength underscores a growing demand for top-end luxury real estate, driven by India’s economic resilience and increasing affluence among the elite,” said Sudershan Sharma, executive director at India Sotheby’s International Realty, in the report. The latest Hurun Global Rich List highlights a 51 per cent increase in Indian super-rich, with 271 billionaires, a majority of who have a base in Mumbai, he said.

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Some of the notable transactions of the year were from Anil Gupta and Well-known Polyester Ltd, who bought a 270 crore property in Malabar Hills, Rekha Jhunjhunwala and Family who bought a 156.5 crore property in Malabar Hills, Vratika Gupta bought a 116.4 crore property in Worli, and Girdharlal Bawri who bought a property for 101 crore in Juhu, as per the report.

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The real estate market in Bangalore also saw an increase in sales figures on a year-on-year basis. According to the Knight Frank report, residential property sales in Bengaluru increased 4 per cent for the first half of 2024 compared to the H1 of 2023. South Bengaluru contributed 35 per cent to the city’s residential unit sales growth. 

The prices of residential estates have gone up 9 per cent in Bengaluru, the highest rate of change amongst all other Indian states, and 4 per cent in cities like Delhi-NCR and Mumbai in a year, as per the report.

According to the Knight Frank India report, the real estate market in the Delhi-NCR region declined 4 per cent in H1 2024 compared to H1 2023. 

Cities like Kolkata, Pune, Hyderabad, Ahmedabad, and Chennai also have reported growth in overall sales of real estate in H1 2024. Kolkata leads the growth rate with 25 per cent when compared to the previous year, then comes Hyderabad with a sales growth rate of 21 per cent, Ahmedabad with 17 per cent, then Pune with 13 per cent sales growth, and Chennai with 12 per cent sales growth when compared to the previous year, as per the industry report. 

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