Mumbai Real Estate in 2024: The 2 lakh per square foot house makes its debut

Super-opulent homes will always be in demand, but to deal with clients with that kind of purchasing power, developers may need to step up their game in terms of projects, locations, and even interpersonal skills.

As we commence the New Year, it is imperative to evaluate both the previous year and the future prospects. Despite the robust optical registration figures, 2023 proved to be a challenging year for affordable housing developments due to the impact of elevated borrowing rates on demand. Mid-range housing remained stable. Luxury and premium were prominent.

However, the ultra-luxury home market was the real star of the year. Both ticket prices and sizes hit previously unheard-of heights. For a few projects, prices were roughly Rs 1.5 lakh per square foot.

I think the super-luxury trend will last until 2024. Additionally, new residences with prices per square foot that set a new record will be introduced. Even while the costs seem exorbitant for a city with a low per capita income like Mumbai, the dynamics of the specialized super-luxury market are very different. This is a market niche with discerning tastes and vast financial resources to support them. They had the money earlier too, but there weren't many good choices.

That's because Mumbai real estate was the best compromise for a buyer up until recently. You didn't have a high-quality project if you only had the setting and location. Bandra, for instance. You didn't have the surroundings if all you had was the project and views of the water. You didn't have a credible builder involved if you had all of that. If you have all of it, the project was either driven by a public parking plan or it was a slum redevelopment project. The compromise was broken first by Lodha Malabar.

This isn't the end of it. Deals exceeding even Lodha Malabar would be ensured by a combination of liberalizing Coastal Regulation Zone standards and tremendous wealth creation for the 0.001 percent league. How much work will it take for a project to reach the cost of Rs 2 lakh per square foot?