Luxury property segment in Mumbai, the country’s most expensive real estate market, has witnessed buoyancy in the first half of the year as corporate honchos, CXOs, Bollywood stars and high networth individuals continued to lap up properties.

Most of them have concluded their high-value transactions in the backdrop of the stamp duty reduction announced by the state government and discounts offered by realty developers.

The country’s financial capital has recorded transactions worth over Rs 4,000 crore in the first half of 2021, showed data from Square Yards. The performance indicates a good run following the second half of 2020 when it started witnessing an uptrend after almost half a decade.

Sales of luxury apartments in central and south Mumbai, priced at Rs 15 crore and more, had been sluggish before the pandemic hit and now these micro-markets are leading the deal conclusion.

“Mumbai being undoubtedly the most attractive and expensive real estate market in India boasts of the highest number of transactions over Rs 15 crore. It formed around 0.13% of the total residential sale transaction base of about 1.26 Lakh units in 2021 (Jan-May). There was a significant growth in these high-ticket transactions compared to 2019 and 2020 which is attributed to lesser stamp duty, price correction of over 15% in high value transactions and the recent cheer in equity markets,” said Anand Moorthy, Business Head, Data Intelligence & Asset Management, Square Yards.

According to the report, more than 45% of the homes purchased in the above Rs 15 crore category were priced between Rs 15-20 crore while 40% were priced at Rs 20-30 crore. Less than 10% of the transactions fell in the Rs 30-50 crore budget bracket while homes priced above Rs 50 crore formed 7% of the total share.

Nearly 60% of the total transactions captured came from residential projects in Lower Parel. Around 60% of the total transactions were registered at 2% stamp duty indicating that the slashed stamp duty charges spurred a major uptick in the luxury segment in Q1, 2021. Higher floors were more preferred by luxury property buyers as 34% of the transactions recorded were for units on the 40th and above floors.

Maximum number of transactions were noted for properties sized between 4,000-6,000 sq ft with 43% share of the total sales. Almost 67% of the buyers in the list were aged above 40 years while 35% of the buyers belonged to the real estate sector, the report added.

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