Mumbai’s luxury real estate market is currently experiencing an extraordinary surge, with high-net-worth individuals (HNWIs) driving over Rs 800 crore in property transactions within the last two months.
This uptick in high-end property deals comes after a period of relative sluggishness, sparking discussions among industry experts on what is fueling this unprecedented growth.
The surge, which involves the purchase and sale of prime apartments, is closely linked to a combination of financial year-end strategies and the anticipation of a hike in Maharashtra’s ready reckoner rates. These factors have created a sense of urgency among affluent buyers to finalise deals before the impending increase in property valuation rates, effective from April 1, 2025. Experts point to the critical role of tax planning strategies in these recent transactions. Many HNWIs are liquidating their stocks and moving profits into real estate assets, especially in transactions involving properties valued over Rs 100 crore. This shift in asset allocation is largely driven by the need to minimise capital gains tax, a strategy employed by investors in the final days of the financial year. As a result, March has seen a marked increase in property registrations, with some of the most exclusive deals taking place in prime locations such as Juhu, Worli, and Andheri.
One of the standout transactions occurred in January 2025, when the directors of financial consulting firm Sahastraa Advisors Private Limited acquired a luxurious apartment in Avalon Tower, Juhu, for Rs 106 crore. February followed suit with Sujata Agarwal, director of 9 Sky View Residences Pvt Ltd, purchasing three high-end apartments in Juhu for a total of over Rs 104 crore.
March proved to be particularly active, with at least three significant property transactions:
• Amit Rathi, co-founder of QiCAP.AI, acquired an apartment in Palais Royale, the tallest building in India, located in Worli, for Rs 89.91 crore.
• Aruna Babulal Varma, wife of Omkar Realtors’ promoter Babulal Varma, purchased an apartment in Worli for Rs 68 crore.
• SR Menon Properties LLP made waves with the acquisition of a 14,866 sq ft apartment at Lodha Sea Face, an under-construction project by Macrotech Developers, for Rs 187 crore.
These high-value deals highlight a shift towards more secure investments in tangible assets like real estate, especially as the equity markets experience volatility. Additionally, several HNWIs have opted to sell properties in recent weeks. Bollywood superstar Akshay Kumar was among those who sold nearly Rs 100 crore worth of luxury residences, while international icon Priyanka Chopra Jonas sold four luxury apartments in Andheri West for a combined total of Rs 16.17 crore.
The consistent influx of transactions in Mumbai’s luxury real estate market is reflective of broader economic trends. HNWIs are increasingly using property acquisitions as a shield against market uncertainties. The proximity of Mumbai’s prime locations to business hubs, entertainment venues, and luxury amenities has only made these high-end apartments more appealing as both investment and lifestyle assets. While the luxury segment in Mumbai had shown signs of a slowdown earlier in the year, this surge in activity suggests that the market remains resilient, particularly for high-value transactions. The continued interest in real estate investments by the city’s wealthy is likely to have a stabilising effect on the overall property market.
As the financial year comes to a close, Mumbai’s luxury real estate market stands as a testament to the strategic investments made by affluent buyers in an effort to secure long-term wealth. However, whether this surge is a temporary spike or a new trend remains to be seen, with experts keeping a close watch on the impact of the upcoming ready reckoner rate hikes.
