In many cities, particularly in Mumbai, the real estate market reported a total of 1,14,652 registrations between January and November 2023,
Year Ender 2023: The luxury property buying in the real estate market saw an astronomical rise the calendar year 2023. The sale of houses in the Rs 3-7 crore segment has gone up related more than last year, and now comprises around 30 to 35 percent of residential property registrations.
Particularly in Mumbai, the real estate market reported a total of 1,14,652 registrations between January and November 2023, a 2 percent year-on-year (YoY) increase compared to the 1,12,668 registrations recorded during the corresponding period in 2022.
On how the luxury property buying witnessed an astronomical rise in 2023, Rishabh Siroya, Founder of Siroya Corp, told India.com that in 2023, the luxury real estate market experienced an unprecedented surge, witnessing a remarkable rise in high-end property acquisitions.
He said as per industry data, a substantial increase in luxury property transactions has been witnessed with a notable year-over-year growth of 35%.
“Affluent buyers sought exclusive amenities, leading to a surge in sales of properties. This astronomical rise reflects a robust global economy and a renewed confidence among high-net-worth individuals in real estate as a secure and lucrative investment. The year-end report underscores the resilience and flourishing nature of the luxury real estate sector in 2023,” he said.
It is moreover expected that Mumbai will see 3-5 percent growth compared to the 1,22,035 registrations reported the previous year, according to Maharashtra government data collated by Knight Frank India, a real estate consultancy firm.
The real estate market in the city experienced a consistent increase in premiumisation. From January to November 2023, the share of property registrations was valued at Rs 1 crore and went up from 54 percent in 2022, to 57 percent in 2023. This trend is expected to persist all through 2023, Knight Frank India added.
Boost In Revenue Collections
What is interesting to note that the increasing property prices and sales have together contributed to a major boost in revenue collections. If the current rate of property registrations continues, it is expected that Mumbai’s total revenue collections will grow between 22 to 25 percent compared to the Rs 8,900 crore collected in 2022, said Knight Frank India.
Millennials Leading In Luxury Home Buying
In the meantime, millennials have led the luxury home buying trend in the country in 2023. For many years, millennials were considered a generation burdened with student loan debt, limited job opportunities, and a penchant for renting in urban cores. However, the narrative has changed in 2023 and many millennials are now moving into higher-earning periods of their careers, and some have benefitted from wealth transfers from their baby-boomer parents.