APPD Market Report Article


September 4, 2023

Dr Samantak Das, Head of Research, India


INR 97.7


Highest-ever sales in the high-end segment

  • Sales of high-end residential units recorded a historic high as homebuyers continued to show a preference for bigger homes. Big-ticket deals continued to be recorded in high-demand locations like Juhu, Malabar Hill and Worli, the hotspots for such deals. Industrialists, movie stars, celebrities and the C-suite were recorded purchasing high-end apartments.
  • Thane accounted for the highest share of 2Q23 sales with 19.7%, followed by the Eastern Suburbs I and Western Suburbs I with 16.9% and 15.3%, respectively. The South Mumbai submarket recorded sales that were almost similar q-o-q. Projects that recorded healthy sales in the quarter included Oberoi Elysian Tower B in Western Suburbs I and The Gateway in Navi Mumbai.

New launches up 26.3% q-o-q

  • A total of 6,284 units were launched in the high-end segment in 2Q23, up by 26.3% q-o-q and at a record high in the city. Growth corridors in the suburbs were key drivers with more high-end launches recorded there.
  • New launches were mostly driven by the Thane and Navi Mumbai submarkets, which accounted for 29.1% and 17.4%, respectively. However, key submarkets like South Central Mumbai and Western Suburbs II saw a sequential decline in launches.

Capital values inch up marginally

  • Capital values recorded a slight q-o-q rise of 0.9% as the appetite to buy high-end residential apartments remained strong, allowing developers the headroom to increase prices. Increased input material costs were passed onto homebuyers, which was also a factor in the rising capital values. Suburban markets saw higher price growth, with Thane recording the highest q-o-q increase.
  • Rents were up marginally across all submarkets as demand remained strong among tenants for such projects, especially movie stars and the C-suite.

Outlook: Sustained momentum to continue in the high-end segment

  • The High-end residential market is likely to continue its momentum going forward, on the back of improved market sentiment and increasing demand for bigger homes.
  • While higher input costs will continue to be a factor in price discovery, the sales momentum is also likely to support developers as they hike prices in this segment.

Note: Mumbai Residential refers to Mumbai's prime residential market.

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