In Mumbai, luxury property purchases have increased significantly.
Property transactions have increased in Mumbai‘s affluent micro-markets of Worli, Juhu, and Bandra. Bollywood stars, tycoons, and business figures have all made investments in Mumbai’s real estate market.
IGE India Pvt Ltd, one of the Dabriwala family’s investment entities, has purchased two sea-facing homes in Worli for Rs 151 crore. A few days later, Agarwal Holdings paid Rs 332 crore for around 2 acres of land in Juhu. The property parcel is 1.72 acres in size and contains a building of over 4,300 square feet. The business paid around Rs 20 crore in stamp duty and registration fees for the transaction.
Prominent Mumbai luxury property offers
In June 2022, Ravi and Neel Raheja of K Raheja Corp paid Rs 183 crore for a 25,000-square-foot home on an acre of land in Juhu. Bollywood celebrities have also purchased luxury properties in Juhu and other key locations of Mumbai. To mention a few, Rajkummar Rao paid Rs 44 crore for an uber-luxe property spanning across 3,000 sq ft in Juhu, while Ranveer Singh paid Rs 119 crore for a sea-view luxury quadruplex residence in Bandra West, Mumbai.
How will the real estate market fare in 2022?
With pandemic circumstances mainly receding from the country, the residential real estate market appears to be positive in 2022. According to industry statistics, around 306 upmarket housing units worth Rs 4,877 crore were sold in Mumbai during the first quarter of the calendar year 2022. Transactions by notable people such as Radhakishan Damani, Motilal Oswal, and Jiten Doshi were among the luxury apartment deals registered in Mumbai in 2021.
What are the primary reasons boosting demand for luxury houses in India?
The ultra-rich are the most active buyers of luxury residences in India. They mostly invest in real estate in order to maximise capital profits. Section 54F of the Income Tax Act allows for tax savings on capital gains if the earnings are reinvested in real estate.
President of India Sotheby’s International Realty (India SIR), Ashwin Chadha, says, “India SIR enables luxury property transactions, including Hayath’s recent purchase. To avoid capital gains tax, entrepreneurs are increasingly motivated to transfer their holdings to funds and institutions and invest in residential buildings.”
Furthermore, increased customer desire for superior facilities and cheap mortgage rates have been important factors to the sales of high-end buildings. Notwithstanding two straight hikes in repo rates this year, house loan interest rates in India remain lower than pre-COVID levels, which is a major driver of the rise.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
