Are Luxury Housing Projects in Mumbai Making a Comeback

Supply of luxurious apartments and penthouses in Mumbai increased demand in 2015. There was a mismatch in the luxury and ultra-luxury housing segment due to factors like low demand and ever-increasing need for affordable homes. However, in 2016, the luxury market seems to be performing well with various projects being launched for buyers.

There is no doubt that Mumbai has space crunch when it comes to residential apartments but if you are willing to spend good money, there are various luxury apartments in the city, waiting for buyers. In the last few years, ultra luxury and luxury housing projects in Mumbai developed at a rapid pace, but there were no buyers because rates were too high. Due to this, inventory increased and several luxury projects remained vacant even though many projects were launched simultaneously.

Real estate developers were constructing luxury apartments in the luxury and ultra-luxury segments aggressively. They were under the impression that sooner or later the units will get sold off. They worked with the hope that with transparency in transactions and redevelopment picking up pace, demand for match up the supply. But in a city like Mumbai, affordable housing is still more popular. Middle income buyers prefer an affordable 1, 2 or 2.5 BHK flats in Mumbai, rather than opting for a luxury 3, 4BHK flats.

Even though the population in Mumbai is on the rise, the per capita income is less due to which luxury properties don’t get much buyers. The demand supply scene of luxury housing in Mumbai has been stagnant for some time and despite the infrastructural constraints, the supply has been preceding the demand.

After a low period of almost two years, the luxury property segment in Mumbai seems to be making a comeback. Spurred by rising demand, many real estate developers are launching new projects. According to a report by Liases Foras Real Estate Rating and Research Pvt. Ltd, MMR (Mumbai metropolitan region) was the highest contributor to home sales in the luxury and ultra-luxury segments in the October-December quarter.

In last few months, sale of luxury apartments has been good in Mumbai. Rates seem to be stabilizing and mainly end-users and long term investors are spending money. Several projects are planned this year and it seems luxury home buyers in Mumbai are in for a treat.

Where to find luxury homes in Mumbai?

There are few areas where you can find luxury and ultra-luxury properties in the city. For instance, Mahalaxmi, BKC (Bandra Kurla Complex, Santa Cruz, Colaba and Worli are few of the places where wealthy buyers can find various options. In the 75 Lacs to 10 Crore budget, one can find various options in the Andheri-Dahisar area. There are various units vacant in this belt that one can buy.

Since there are so many projects coming up in this segments, buyers will have a lot of choice in terms of luxury properties. Real estate companies expect sales to pick up.