Why Mumbai’s high-end homes are suddenly costing as much as New York

Dubai: Premium homes in Mumbai are now priced at levels comparable with parts of New York’s Lower Manhattan, with luxury apartments in Worli touching as high as ₹100,000 ($1,109) per sq ft. The surge reflects how sharply the city’s high-end housing market has accelerated this year, powered almost entirely by domestic wealth creation and a wave of demand from Indian buyers.

“Premium tower apartments in Worli now command ₹65,000 to over ₹1,00,000 per sq. ft. — pricing that positions it as India's equivalent to New York's Lower Manhattan, not merely in aspiration, but in hard economics,” said Anuj Puri, Chairman of ANAROCK Group.

New data from the “The Pinnacle of Luxury: Worli” report, published jointly by Indian real estate consultant ANAROCK Group and wealth management firm 360 One Wealth, reveals the extent of the shift.

Between January and August 2024, Mumbai accounted for 84% of all ultra-luxury residential sales across India’s biggest cities — 21 out of the 25 homes sold for more than ₹40 crore (about $4.8 million). Properties priced above ₹100 crore have logged some of the fastest gains this year, reflecting fierce competition for marquee real estate.

Puri also highlighted just how concentrated this demand has become: “Forty per cent of India's entire ultra-luxury apartment market is now Worli. That singular statistic captures the micro-market's unprecedented dominance. Across the entire country – from Bengaluru's sprawling tech corridors to Delhi's power pockets – Worli accounts for nearly half of all transactions exceeding ₹40 crore.”

Wealth rush for trophy assets

The momentum is being fuelled mainly by India’s expanding pool of wealthy buyers. HNWIs and UHNWIs are increasingly investing domestically instead of looking to overseas markets. Business owners make up close to 80% of such purchases, with the rest coming from senior executives and celebrities.

For these buyers, luxury real estate is more than a lifestyle statement. It is a long-term wealth preservation tool, an inflation hedge and, often, a legacy asset passed between generations. Rising purchasing power is pushing demand up even as prices climb.

Puri notes how quickly the top end of the market has accelerated: “The momentum is only accelerating. 2025 alone witnessed one of India's costliest apartment transactions — two duplexes sold for over ₹700 crore. Over the past three years, Worli has seen over 20 residential deals individually priced above ₹100 crore closed.”

Limited supply drives demand

Buyer preferences have shifted meaningfully since the pandemic. Larger homes, more privacy and high-spec amenities — private elevators, security infrastructure, smart-home systems — are now essentials rather than luxuries. Developers catering to these needs continue to record strong absorption rates across Mumbai’s most exclusive communities.

This demand has remained intact despite steep price jumps, underscoring the resilience of the luxury segment.

Mumbai’s rapid infrastructure build-out is reshaping buyer interest. New metro corridors, the Coastal Road and the Trans-Harbour Link have sharply improved travel times and connectivity, especially for neighbourhoods in South and Central Mumbai.

As access improves, prime micro-markets like Worli are attracting even higher demand, pushing prices to new highs and compressing inventory further.

Scarcity remains at the core of Mumbai’s premium real estate dynamics. Limited land in central areas and restrictive planning norms — including low FSI limits — constrain how much new supply can realistically be added.

With a small pool of new projects and very few undeveloped land parcels available, prices in existing and upcoming luxury towers continue to rise.

How will this compare globally?

Mumbai’s most expensive apartments now stand shoulder-to-shoulder with global luxury hubs on a per sq ft basis. Analysts note that when adjusting for purchasing power, buying a home in India’s biggest metros can feel as financially demanding as purchasing real estate in some of the world’s costliest cities.

The broader housing market across India is also strong. Sales in the top seven cities have touched new highs this year. The ₹5 crore-and-above bracket is among the fastest-growing segments.

With domestic demand strengthening, infrastructure improving and supply staying constrained, the outlook suggests continued momentum. In several measures, Mumbai’s luxury market is no longer just catching up with global peers — it is beginning to outpace them.