Mumbai high-end apartment demand to remain strong

Prices are expected to increase in the coming quarters.

In a recent report, JLL said Mumbai’s high-end residential market is expected to be propped up by demand from HNIs, NRIs, industrialists and executives. Infrastructure projects will improve connectivity, enabling easier living and keeping demand for such properties at elevated levels.

“Prices are expected to rise as new launches are likely to enter the market at higher prices. Strong sales will support developers as they increase prices for successful projects. Capital values are anticipated to grow at a faster pace y-o-y,” the report added.

Here’s more from JLL:

High-end apartment sales reached a new peak as buyers favoured spacious homes. Industrialists, high-net-worth individuals (HNIs), executives and celebrities purchased luxury apartments in sought-after locations like Lower Parel, Worli and Bandra.

The Navi Mumbai submarket led with 19.3% of the total high-end sales, followed by Thane and Western Suburbs II submarkets. South Central Mumbai and Eastern Suburbs submarkets recorded all-time high sales.

New launches record all-time highs

In Q3, 8,645 units were launched in the high-end segment, a significant growth of 51.7% q-o-q, recording an all-time high. The Thane submarket led the quarterly new launches, accounting for 32.8%.

South Mumbai, South Central Mumbai, Eastern Suburbs and Thane saw an increase in new project launches on a q-o-q basis, while other submarkets experienced a decline. Around 18% of all launches in Q3 fell within the price range of INR 30 to 50 million.

Capital values grow marginally q-o-q in all submarkets

Capital values were up by 0.4-0.8% q-o-q across all submarkets, as demand remained positive for premium apartments in the city. Thane recorded the highest price growth, followed by North Mumbai, Navi Mumbai and Eastern Suburbs.

Rents were also up q-o-q in Q3, with the Navi Mumbai submarket experiencing the highest growth. This was fuelled by growth in the office sector and infrastructure developments, both of which contributed to an increased demand for apartments in that area.