Pickleball and sea-facing views: Inside South Mumbai's renewed luxury housing boom
All-time high sales of luxury homes, consistent demand from wealthy individuals including industrialists, C-suite executives, and diamond merchants, and recent record-breaking sale transactions have prompted realty firms to look at South Mumbai again.
The acquisition spree, which began about two years ago, has gathered pace recently as India's luxury housing market has stayed strong, property analysts said.
Not only marquee South Mumbai neighbourhoods such as Altamount Road, Carmichael Road, Nepeansea Road, and Malabar Hill, but also areas such as Gamdevi and Hughes Road that were overlooked in the past are being eyed for projects.
'South Mumbai has seen a big surge in acquisition of properties by developers at high costs," said Ritesh Mehta, senior director, and head (north and west), residential services and developer initiative, India, at JLL, a property advisory.
'City developers as well as developers from other cities are in the fray to acquire and redevelop projects in various locations in South Mumbai. Due to the demand-supply mismatch, there is huge demand for redevelopment opportunities and developers are racing to acquire new properties," he added.
K Raheja Corp., which has developed several luxury residential projects, has acquired four properties across South Mumbai in recent months to be launched as high-end projects. Among these, the redevelopment of the Pleasant Palace housing society in Malabar Hill will be an ultra-luxury project.
Vinod Rohira, managing director and chief executive of K Raheja Corp. said the company will be rolling out a series of luxury developments in South Mumbai.
'The transformation of Mumbai into a global city in the next decade is attracting wealth from across the world—NRIs (non-resident Indians), institutional capital, tech-led wealth, and even domestic wealth from other parts of India—who now aspire to own homes in South Mumbai's ultra-luxury zones, particularly within a 1-2 mile radius," Rohira said.
Not surprisingly, from Adani Group to Godrej Properties, all the top developers want a slice of this lucrative real estate.
In the last three years, 49 ultra luxury homes, each with a price tag of ₹100 crore or more, were sold in Mumbai and Delhi-National Capital Region, JLL said in March. Mumbai accounted for 69% of these homes, with Malabar Hill and Worli dominating the bulk of these transactions.
Bigger homes, higher prices, and pickleball
South Mumbai has always been a niche residential market with limited supply, with projects launched via redevelopment of old bungalows, buildings and housing societies. As a result, new, younger homebuyers looked at upcoming locations in central and suburban Mumbai.
However, the turnaround in India's luxury housing market has seen South Mumbai gaining favour again. Prices for sea-facing residential projects in South Mumbai range from ₹1.25 to ₹2 lakh per sq.ft.
'Developers who will launch projects in South Mumbai are going all out to benchmark their sales prices. As a result, projects in front-row, sea-facing locations are charging significant pricing premium," said JLL's Mehta. 'However, the sales and success of the projects will boil down to the brand name and quality."
The demand-supply mismatch in this niche market is likely to further push up property prices, which have already risen by 15-18% in the previous two years.
Mumbai developer Sunteck Realty is gearing up to launch a project in Nepeansea Road that will have 10,000 sq.ft. homes. 'There is big demand from high-profile buyers. We plan to launch the project in the current financial year," said chairman and managing director Kamal Khetan.
Bengaluru developer Prestige Group, which has launched luxury projects at Marine Lines and Worli in Mumbai in recent years, is exploring more South Mumbai projects.
'We are getting many society redevelopment offers but we are being cautious about what we pick. Increase in consumer demand has driven up acquisition costs, so we must ensure that the project is viable and the margins are protected," said Anand Ramachandran, senior executive vice president, business expansion, Prestige Group. 'There is clear demand for large residences (with) premium amenities, including pickleball in the project."
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