By Amit Jain
India’s real estate sector stands at a crucial point where the need for sustainable development is becoming just as important as economic growth. Being one of the foundational pillars of the Indian economy, the real estate sector is key to the country’s overall progress. However, to maintain this growth while caring for the environment, the industry is looking for ways to strike a balance between the pressures of economic realities and the demand for sustainable practices.
In recent years, efforts like the Smart Cities Mission, affordable housing programs, and regulatory updates through the Real Estate (Regulation and Development) Act (RERA) have laid the groundwork for a more accountable and transparent sector. These changes have further catalyzed the alignment of economic development with sustainable practices, encouraging real estate players to adopt green buildings, smart infrastructure, and responsible development methods. This transformation is paving the way for a future where sustainability and economic gains coexist, marking a shift towards environmentally conscious growth.
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While sustainability is being prioritized, another trend is shaping the market—luxury housing. India’s luxury residential real estate market is witnessing an unprecedented boom, especially in key urban centers like Mumbai. The demand for luxury homes has never been higher, with many buyers now opting for larger, more luxurious living spaces. Several factors are driving this surge, including post-pandemic lifestyle changes, India’s massive economic growth, rapid urbanization, and a rise in the number of high-net-worth individuals (HNIs).
Mumbai’s luxury real estate market, in particular, is growing at an aggressive pace. Over the last quarter, new luxury launches in the city, especially in central suburbs like Santacruz and Mulund, have shot up by 64%, according to CBRE data. This growth is largely due to the rising aspirations of buyers who are looking for homes that offer a higher standard of living. Additionally, developers are expanding their portfolios to meet this demand, offering more high-end properties to cater to the increasing number of affluent individuals.
One of the most interesting trends in the luxury market is the role of millennials. Millennials now account for roughly 36% of the population, and their growing wealth has made them a significant force in the housing market. Unlike previous generations, millennials tend to prefer luxurious living, with modern amenities and global design sensibilities. According to CoreLogic, millennials made up 54% of home purchases in 2023. This generation, known for its global outlook, is driving demand for luxury homes in India, particularly in cities like Mumbai, Delhi-NCR, Hyderabad, and Pune.
Non-resident Indians (NRIs) are also playing a key role in the luxury housing market. Many NRIs see investing in Indian real estate as a way to protect their wealth from currency fluctuations while diversifying their investment portfolios. Mumbai, being one of the country’s leading cities, attracts significant interest from NRIs looking for high-end properties.
Urbanization is another driving force behind the growth of Mumbai’s luxury housing market. As more people move to cities for better job opportunities, the demand for premium homes is increasing. High-income individuals are now seeking residences that offer not just luxury but also proximity to urban centers, modern infrastructure, and superior amenities. The result is a market where luxury homes are not just a status symbol but a necessity for those who want the best living standards.
Despite rising land costs and the scarcity of land in prime areas, developers are finding ways to make luxury more cost-effective. This doesn’t mean cutting back on quality; rather, it involves offering better value by incorporating more space, advanced technology, and top-notch amenities while keeping prices competitive. The concept of “cost-effective luxury” is gaining traction, where buyers get the best in terms of design, location, and technology, but at a price that feels reasonable given the high standards of living they expect.
Mumbai’s luxury real estate market is expected to continue its upward trajectory, fueled by rising incomes, infrastructure developments such as the Jewar Airport, and the growing aspirations of homebuyers. Developers are increasingly pushing the boundaries of design, offering innovative projects that blend modern living with a sense of community and exclusivity.
For both buyers and investors, Mumbai’s luxury real estate offers promising opportunities. The market, which is expected to grow from $38.02 billion in 2024 to $101.92 billion by 2029, is poised to see sustained demand for high-end homes. Whether it’s for personal use or investment, the city’s luxury homes are seen as valuable assets in a rapidly evolving market.
Mumbai’s residential real estate sector is not just catering to luxury buyers; it is actively reshaping what luxury means, offering cost-effective options without compromising on quality. With urbanization, rising incomes, and sustainable practices driving the market forward, it’s an exciting time for real estate in the city.
About the author: Amit Jain, Chairman and Managing Director, Arkade developers Ltd.
Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.
From: financialexpress
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