Riding on the buying spree of the country’s riches, India’s ultra-luxury homes market is on a dream run. If the latest data is something to by, ultra-high net worth Indians are purchasing sprawling bungalows, premium villas and glitzy penthouses like never before.
During the first nine months of 2023, sales of ultra-luxury homes (priced over Rs 40 crore) have surged by a whopping 247 per cent, as per data from Anarock research. Between January-November this year, the total value of ultra-luxury homes sold in the country has jumped to Rs 4,063 crore - nearly two and half times of the total deal value in 2022. Last year, nearly Rs 1,170 crore worth of ultra-luxury homes were sold in the country.
It is not just the value of ultra-luxury properties that has recorded a massive jump. Even the. Number of such properties sold have also grown significantly. While in 2022, 13 ultra-luxury homes were purchased by Indian inside the country, in the 11 months of 2023 58 such properties changed hands. Ultra-luxury homes have had an unprecedented bull-run in 2023, with both the number of sales and sales value of such assets hitting new peaks, analysts at Anarock noted.
According to Anuj Puri, Chairman, Anarock Group, the surge in demand for ultra-luxury homes can be traced to the reshuffling of HNI (high net worth individual) investment portfolios amid the anticipated volatility in the stock market due to the existing geopolitical tensions. “Demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs and ultra-HNIs buying such homes for investment, personal use, or both. Not surprisingly, leading Grade A developers have also been scaling up their new supply in the ultra-luxury category. Among wealthy Indians, there is a very distinct FOMO (fear of missing out) aspect to securing the most desirable options before someone else does”, he says.
The phenomenon, however, was primarily confined to the Mumbai - the latest residential real estate market in the country. Out of the 58 deals this year, 53 were in Mumbai - with posh localities like Malabar Hills and Worli topping the chart. Of the top 5 deals this year, Rs 369 crore apartment in Malabar Hills remains the most valuable home to have changed hands, followed by a Rs 263 crore apartment in the same locality. While a Rs 160 crore bungalow in Delhi’s Gold Links stands at the fifth spot.
Overall, apartments remained the preferred property type for HNIs as of 58 deals, 53 were for apartments and the remaining five were bungalows. At least 79 per cent of the total deals were concluded by businessmen, and 16 percent by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5 per cent.
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