Luxury Housing in Mumbai - An Update!

Why should I buy Bata when I can afford Jimmy Choo?

Why should I drive in a Maruti when Lamborghini defines me?

Why should I...

Ahhh!! Enough of these, right?

Well, the same goes for why should I live in a 1BHK when I deserve, and can easily own a penthouse on the 60th floor of the tallest skyscraper in the city?

This seems to be the mantra of not only the older generation of hugely wealthy individuals, but the new ones joining the gang at a rapid pace, most of them belonging to the fast growing telecom and e-commerce space. Luxury housing is on a rise and like how! The pace at which the luxury housing segment is growing in the country is making the world take notice and all major developers are lining up to have a share in the pie! Let’s look at the overall growth of the market and specifically in Mumbai, the city of dreams!

Basic Trends in the Country

India’s High Net Worth Individuals (HNWI) are expected to grow to almost 3,50,000 by 2018-19 and these very individuals are the ones whose 40% of the investment is in real estate. Catering to this client base, a lot of luxury projects are announced in Mumbai, Bengaluru, Pune, NCR especially in Gurgaon and Chennai. In fact recently Raheja Developers are planning to sell ‘India’s Most Expensive Apartment’ with a price tag of INR 100 crores in its Gurgaon’s Revanta Project!

Mumbai’s Luxury Real Estate

The luxury real estate is witnessing growth in the entire country with Mumbai being the clear leader followed by Bengaluru and Gurgaon. The average annual price increase in Mumbai in as high as 30-40%, which is phenomenally good for the developers who have tied up with international brands to provide ultra-luxurious lifestyle to Indians looking forward to live a global lifestyle.

Prime Locations Leading The Growth

In Mumbai, Bandra Kurla Complex (BKC) is attracting the likes of industrialist Gautam Adani, former Citigroup Head Vikram Pandit, Harish  Mariwala of Marico, Kishore Lulla of Eros International and many of their ilk to purchase ultra-luxury apartments. The prices for such duplexes being built by Sunteck Realty in Signature Island are commanding a price of INR30 to INR 55 crore! Not only BKC, there are other high end properties in the city commanding sky-high prices purely based on the address they are situated at and the luxurious lifestyle they have to offer. The prominent amongst these are:

• Samudra Mahal in Worli: Price starts from INR 18 crores
• Hill Park in Malabar Hill: Price starts from INR 21 crores
• Suneeta Building in Malabar Hill: Price starts from INR 35 crores
• NCPA Apartments in Nariman Point with prices starting from INR 27 crores

Besides these already well-known places, the upcoming upmarket places include:

• Vivarea by Rahejas in Mahalaxmi with prices beginning at INR18 crores
• Praneta in Juhu costing a minimum of INR35 crores
• Parthenon in Andheri at a minimum price of INR13 crore!

In addition to these, in the past few months the realty majors like Lodha Group, Runwal Group and Imkar Realtors have announced various projects in the range of INR6 crore to INR 20 crore. However, what takes the cake are the Trump Towers in Central Mumbai launched by Lodha Group in partnership with America’s one of the biggest real estate persona, Donald Trump! Lodha Group has also tied up Giorgio Armani for one of the residential projects in Worli called the World One. Getting foreign big brand names in construction as well as luxury segments are the next big thing not only in Mumbai, but across the country!

Apart from all these prominent ones, expectations are rife, that as many as 1000 new ultra luxury residences are coming up in various areas of Mumbai like Lower Parel, Mumbai, and Carmichael Road with a price tag of at least INR 7 crores.

Future Ahead

Going forward, the future of the luxury housing segment looks very promising. The global average for the luxury segment as part of the entire real estate pie is about 7-9% whereas in India it just about 2%. The silver lining is the potential and the pace of growth witnessed in the entire economy. The number of millionaires is increasing in the entire country and Mumbai as a city is the business capital of the nation. With better lifestyle, charms of living at a world-renowned address and future potential of the appreciation of the investment is drawing a lot of people to opt for luxury homes for themselves.

Add to this aspiring class of millionaires the NRI’s who are flocking back to their homeland either for living or to make some sound business investments, the growth of the luxury home segment as part of real estate will soon become an interesting case study!

Of course, the entire experience of living contemporary life with the feeling of living in a royal palace as an undisputed king will only add to the charms!

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