The ultra luxury property market will keep on rising in 2024, but the critics of the Real Estate sector feel that the developers need to refine their job wrt their projects and locations. This trend is not only for the Real Estate Market of Mumbai but for other markets as well. They also need to focus on their way of dealing with the clients as they have high buying power.
As we embark on a new year, it becomes imperative to reflect on the past and anticipate the future of the real estate market of Mumbai. Despite robust registration numbers, 2023 presented a mixed bag for housing projects in Mumbai. Affordable housing faced challenges due to high-interest rates, while mid-level housing remained stable. However, the spotlight shone on the super-luxury housing market, marking a paradigm shift in price points and ticket sizes. In this discourse, we delve into the trajectory of real estate market of Mumbai in 2023 and the prospects that lie ahead in 2024.
Super-Luxury Housing Dominates Real Estate Market of Mumbai:
The landscape of Mumbai Real Estate Market witnessed distinct trends in 2023. While affordable housing grappled with subdued demand owing to high-interest rates, mid-level housing maintained a steady pace. The real star of the show, however, was the super-luxury housing market. Unprecedented price points, soaring ticket sizes, and a surge in demand marked this segment as the highlight of the year.
Super-Luxury Housing Price Points:
The year 2023 saw the super-luxury housing market reach pinnacle price points, with select projects touching close to Rs 1.5 lakh per square feet. This surge in prices underscored the discerning tastes of the clientele in this niche market, who were willing to invest substantially for exclusivity and opulence.
Outlook for 2024: The Rise of Rs 2 Lakh per Square Feet Homes:
Looking ahead to 2024, the trajectory for the super-luxury housing market seems poised for a continuation of its upward surge. A bold prediction emerges as we anticipate the birth of homes priced at an unprecedented Rs 2 lakh per square feet. While this might seem astronomical, especially in a city with a relatively low per-capita income like Mumbai, the dynamics of the super-luxury segment are unique, driven by a select group with distinctive tastes and substantial financial backing.
Distinctive Traits of the Super-Luxury Segment:
The super-luxury housing market in Mumbai stands apart due to the discerning preferences of its clientele. Unlike other segments, this niche market has the financial prowess to match its sophisticated tastes. The demand for such exclusive properties has always existed, but until recently, Mumbai real estate posed a series of compromises for potential buyers.
Breaking the Compromises in Real Estate Market of Mumbai:
Traditionally, choosing a property in Mumbai meant compromising on one or more crucial factors. If a location and surroundings were desirable, the project’s quality often fell short. Conversely, if the project boasted sea views, the surrounding environment might not align with expectations. Credible builders were scarce, and even if all these factors aligned, the project might be tied to slum redevelopment or public parking schemes.
Lodha Malabar, A Trailblazer of the Real Estate Market of Mumbai:
Lodha Malabar emerged as a game-changer by breaking this compromise cycle. It set a precedent for combining location, quality, surroundings, and a credible builder in one comprehensive project. However, Lodha Malabar is just the beginning. The real estate landscape is poised for further transformation, fueled by liberalizing Coastal Regulation Zone norms and substantial wealth accumulation within the 0.001 percent elite.
The Path to Rs 2 Lakh per Square Feet:
As we anticipate the dawn of homes reaching Rs 2 lakh per square feet, the question arises: What will it take for a project to attain such unprecedented pricing? The answer lies in a combination of factors, including prime locations, impeccable surroundings, top-notch project quality, and the involvement of reputable builders. Projects that can seamlessly blend these elements are poised to exceed even the benchmarks set by Lodha Malabar.
Liberalizing Coastal Regulation Zone Norms:
The easing of Coastal Regulation Zone norms has opened new avenues for real estate development, particularly in prime coastal areas. This relaxation allows developers to explore and execute projects in locations that were previously restricted, further enhancing the appeal of super-luxury properties.
Wealth Creation for the 0.001 Percent League:
The exponential wealth creation within the 0.001 percent league serves as a catalyst for pushing the boundaries of real estate pricing. As the elite class seeks exclusivity, uniqueness, and unmatched luxury, the demand for homes priced at Rs 2 lakh per square feet becomes a plausible reality.
The real estate market of Mumbai is on a trajectory of evolution, with the super-luxury housing segment leading the way. The year 2023 set the stage for unprecedented price points, and 2024 is poised to witness the rise of homes priced at Rs 2 lakh per square feet. The unique dynamics of this niche market, coupled with favorable regulatory changes and substantial wealth creation, will continue to redefine the skyline of Mumbai. As the city embraces a new era of luxury living, the super-luxury housing market stands as a testament to the evolving aspirations of the elite class in India’s financial capital.