Mumbai’s luxury housing market continues to thrive, driven by evolving buyer aspirations and the growing appeal of green living as the new luxury. Modern homebuyers seek expansive layouts, world-class amenities, and a seamless blend of nature and urban convenience. Premium residences with open spaces, landscaped gardens, and wellness-focused designs are gaining traction as buyers prioritize a superior living experience, says Manju Yagnik, Senior Vice President of NAREDCO-Maharashtra, and Vice Chairperson of Nahar Group.
In an exclusive interview with Sanjeev Sinha, Ms Yagnik discusses luxury housing in India and shares her insights on the key factors shaping Mumbai’s real estate market. Excerpts:
Despite economic fluctuations, luxury housing continues to witness strong demand in India. What are the key drivers behind this trend?
India’s luxury housing market has shown remarkable resilience, with sales value across the top seven cities reaching Rs 279,309 crore in the first half of FY 2024-25—an 18% rise in unit sales. This shift reflects a strong demand for premium living spaces driven by multiple factors.
Rising disposable incomes, a growing base of ultra-high-net-worth individuals, and evolving lifestyle aspirations have fueled this demand. Homebuyers today prioritize larger homes with superior amenities, sustainable designs, and top-tier security. Additionally, real estate remains a preferred asset class for wealth preservation, with investors seeing luxury properties as stable long-term investments.
Mumbai has been a major contributor, accounting for 84% of ultra-luxury home sales, highlighting the city’s role as a prime luxury real estate hub. With developers offering innovative projects tailored to elite buyers, this sector continues to thrive, reinforcing confidence in high-end real estate investments.
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How do you see the current real estate landscape in MMR? Which micro-markets are witnessing the most traction, and what is driving demand in these areas?
The Mumbai Metropolitan Region (MMR) remains one of India’s most dynamic real estate markets, witnessing consistent growth driven by infrastructure advancements, employment opportunities, and evolving lifestyle preferences. The expansion of metro lines, highway developments, and increased connectivity to business districts have significantly enhanced the region’s appeal. MMR continues to attract homebuyers and investors looking for long-term value, particularly in well-developed and emerging micro-markets. The demand for premium residential spaces has surged, with buyers seeking spacious homes equipped with modern amenities, green spaces, and proximity to key commercial hubs.
Micro-markets such as Western and Central suburbs, Thane, Navi Mumbai, and Chandivali are gaining traction due to their strategic locations and well-rounded infrastructure. Chandivali, in particular, has seen increasing interest due to its seamless connectivity to Powai, Andheri, and LBS Road, making it an ideal residential destination for professionals. With strong market fundamentals, sustained infrastructure growth, and a resilient buyer base, MMR’s real estate landscape is poised for continued expansion.
Infrastructure plays a crucial role in shaping real estate growth. How do major projects like the Mumbai Metro expansion and the Mumbai Trans Harbour Link impact property demand and pricing across different MMR micro-markets?
Infrastructure development is a key driver of real estate growth in MMR, significantly impacting demand and property prices. The Mumbai Metro expansion and the Mumbai Trans Harbour Link (MTHL) are two transformative projects that are enhancing connectivity and accessibility across various micro-markets. The metro network is improving commuting efficiency, reducing travel time between business hubs and residential areas, thereby making locations like Thane, Ghatkopar, and Andheri more desirable. Increased accessibility often leads to rising property values as homebuyers and investors seek locations with better transport infrastructure.
The MTHL, connecting Mumbai to Navi Mumbai, is expected to be a game changer, cutting travel time between these regions and spurring growth in emerging areas like Panvel, Ulwe, and Kharghar. Additionally, micro-markets like Chandivali are gaining traction due to their proximity to metro corridors and employment hubs. With improved infrastructure, these locations are witnessing increased buyer interest, boosting demand and long-term investment potential.
With increasing focus on rental housing and co-living spaces, how do you see these models shaping the future of housing in MMR?
The increasing popularity of rental housing and co-living spaces is set to play a significant role in the future of housing in MMR. While co-living faced its share of challenges during the pandemic, it has rebounded strongly as normalcy returns. The model’s affordability and community-focused living continue to attract young professionals, students, and migrants in urban areas where rental prices remain high. Co-living not only offers a cost-effective solution but also promotes a flexible, social living environment, which is increasingly in demand. As these models gain more traction, they will shape housing trends, providing more accessible and innovative living options for MMR’s diverse population.
Given the increasing urbanization and land constraints in Mumbai, do you see a shift in buyer preference towards townships and integrated communities?
In the context of Mumbai’s rapid urbanization and limited land availability, there is a noticeable shift in buyer preferences towards townships and integrated communities. These developments offer a holistic living experience by combining residential spaces with essential amenities such as schools, healthcare facilities, retail outlets, and recreational areas within a single, self-sustained environment. This integrated approach not only addresses the challenges of urban sprawl but also enhances the quality of life for residents by providing convenience and reducing the need for long commutes.
The demand for such gated communities is on the rise, as more individuals seek larger homes and better living environments without compromising on safety and security. Features like parks, jogging tracks, and enhanced security measures make these communities particularly appealing to families and senior citizens. Additionally, the inclusion of amenities such as gyms, sports facilities, and swimming pools within the premises adds to their attractiveness. This trend is evident in metropolitan areas, where an increasing number of buyers are opting for apartments or houses situated within gated communities.
Moreover, the concept of integrated townships aligns with the principles of sustainable urban development. By creating self-contained ecosystems, these projects help in reducing the strain on city infrastructure and promote a balanced urban growth. As cities continue to expand, the preference for such comprehensive living solutions is expected to grow, reflecting a significant shift in the real estate landscape towards more organized and community-centric developments.
Looking ahead, what key trends will shape Mumbai’s real estate sector in 2025 and beyond, particularly in terms of affordability and sustainability?
Mumbai’s luxury housing market continues to thrive, driven by evolving buyer aspirations and the growing appeal of green living as the new luxury. Modern homebuyers seek expansive layouts, world-class amenities, and a seamless blend of nature and urban convenience. Premium residences with open spaces, landscaped gardens, and wellness-focused designs are gaining traction as buyers prioritize a superior living experience. Additionally, the increasing presence of high-net-worth individuals (HNIs) and non-resident Indians (NRIs) in the luxury segment has fueled demand for exclusive, high-end properties in prime locations. Infrastructure advancements, such as metro expansions and improved connectivity, further enhance the appeal of luxury developments. Developers are now crafting residences that offer not just grandeur but also tranquility, privacy, and lifestyle-driven amenities. As preferences shift towards spacious, thoughtfully-designed homes that integrate nature and leisure, luxury real estate will continue to evolve to meet these refined expectations.