Where are millionaires investing? Properties above Rs 2 crore gain share in Mumbai market

Synopsis

According to a recent report by Nuvama Institutional Equities, the share of high-value properties rose to 25% in April 2025, up from 22% in April 2024 and 19% in March 2025, signaling a clear resurgence in the premium housing segment.

Mumbai’s real estate market is seeing a notable shift towards luxury housing, with properties priced above Rsc2 crore gaining a larger share of total registrations.

According to a recent report by Nuvama Institutional Equities, the share of high-value properties rose to 25% in April 2025, up from 22% in April 2024 and 19% in March 2025, signaling a clear resurgence in the premium housing segment.

The report attributes this trend to increased new launches, improved city infrastructure, and a pick-up in demand for centrally located, well-connected homes—particularly in South and Central Mumbai, which saw a 1% year-on-year uptick in registration share.

While the total number of housing units registered in Mumbai rose 12% YoY to 13,080 units, there was a 16% MoM decline, largely due to buyers advancing purchases to March 2025 ahead of the 3.4% hike in ready reckoner rates effective April.

In value terms, the April 2025 registrations totaled Rs 18,600 crore, reflecting a 5% YoY increase despite a 30% MoM dip, underscoring the growing traction in the premium segment.

Larger units (above 1,000 sq ft) also gained share, rising to 17% from 14% in March, although compact homes continued to dominate overall registrations.

The central and western suburbs contributed to 85% of total registrations, but the rise in demand for premium locations and larger ticket-size homes indicates increasing confidence among affluent buyers.

The average ticket size in April stood at ₹1.42 crore, down 6% YoY and 17% MoM, due to a diversified buyer mix and some pullback after March’s advance demand.

Looking ahead, Nuvama expects sales momentum to remain robust, supported by a strong launch pipeline, improving cash flows for developers, and a possible moderation in mortgage rates.

The report identifies Lodha, Oberoi, Godrej Properties, Sunteck, and Rustomjee as key beneficiaries of this trend, given their strong presence in Mumbai's premium residential market.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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