Housing sales across the top cities in India have seen strong momentum over the past one year. But, it is not just the affordable or mid-market segments that are in demand. One segment that is setting new records is the ultra-luxury segment, where the number of units sold as well as the value has seen a sharp increase.
As many 58 ultra-luxury homes, that is apartments or bungalows priced over Rs 40 crore, have been sold so far in 2023, across the top seven cities in India. This is a more than four-fold jump compared with 13 such homes that were sold in 2022, according to real estate consultancy Anarock.
In terms of value, the total number of ultra-luxury homes sold this year amounts to Rs 4,063 crore, a 247 per cent increase over Rs 1,170 crore worth of homes sold in 2022.
Demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs (high networth individuals) and ultra-HNIs buying such homes for investment, personal use, or both, opines Anuj Puri, chairman of the Anarock Group.
"The upsurge in demand for ultra-luxury homes can also be traced to the reshuffling of HNI investment portfolios amid the anticipated volatility in the stock market due to the existing geopolitical tensions. Not surprisingly, leading Grade A developers have also been scaling up their new supply in the ultra-luxury category," said Puri.
Then there is also the distinct fear of missing out in this segment; as people wish to secure the most desirable option before others do.
Mumbai alone accounted for 53 homes priced upwards of Rs 40 crore being sold, a 91 per cent share of the total deals across the top cities.
Of these 53, at least three deals were for homes priced at a steep Rs 200 crore plus. Seven other deals were closed at prices between Rs 100-200 crore. In Delhi, at least two ultra-luxury homes were sold for over Rs 100 crore, according to Anarock.
Reports back in February this year had said Welspun Group chairman B.K. Goenka had purchased a triplex in the luxury 360-West project in south Mumbai for Rs 240 crore. This was perhaps the most expensive housing deal in the country at the time.
But, it was trumped by another deal in March, when Bajaj Auto chairman Niraj Bajaj bought a sea-facing triplex penthouse for Rs 252 crore in the posh Malabar Hill area of the city. The same month, a financial daily reported that Vasudha Rohatgi, the wife of former Attorney General of India Mukul Rohatgi, purchased a bungalow in Delhi's Golf Links area for Rs 160 crore.
Of the 58-ultra luxury homes sold this year, 53 were apartments. This suggests apartments clearly remained the preferred property type for HNIs. At least 79 per cent of the total deals were concluded by businessmen, 16 per cent by senior professionals from across sectors, and politicians and Bollywood celebrities accounted for the rest, the Anarock report said.
The surge in new opportunities in various sectors like global manufacturing in India, rising exports, and a robust startup ecosystem has strengthened economic momentum and contributed to wealth creation in the country, said Ashwin Chadha, CEO, India Sotheby's International Realty.
"This, in turn, has led to an increase in the number of wealthy individuals in India, with the noteworthy trend of a declining average age among billionaires. The emerging generation of young and affluent individuals are investing their wealth in ultra-luxury properties," he said.
Chadha added that old and traditional business families are also showing a willingness to invest in expansive ultra-luxury properties, resulting in a notable uptick in demand and transactions.
