Luxury real estate is booming in India, with ultra-wealthy individuals shelling out millions to acquire the most coveted properties. According to data from the real estate services company ANAROCK, a total of 58 ultra-luxury homes have been sold across the top 7 cities in 2023 to date, for a collective sales value of approximately ₹4,063 crore.
What’s driving this surge in ultra-luxury home sales? The report reveals that among affluent Indians, there is a notable fear of missing out (FOMO) when it comes to securing the most desirable properties. This sense of urgency to acquire the most coveted options before others has contributed significantly to the heightened interest and transactions in this niche market segment.
Apartments have emerged as the preferred property type among high net worth individuals, comprising 53 out of 58 deals, while the remaining transactions were for bungalows. The surge in sales of luxury homes is also linked to the reconfiguration of HNI investment strategies. Concerns about potential stock market volatility, largely influenced ongoing geopolitical tensions, have prompted a shift in investment portfolios towards the stability and security offered ultra-luxury homes as an asset class.
The response from top-tier Grade A developers further validates this trend, with efforts to introduce more properties within the ultra-luxury category. Additionally, the demand for luxury and ultra-luxury residences has increased post-pandemic, with HNIs and ultra-HNIs actively purchasing such homes as lucrative investments and for personal use.
The research also provides insights into specific properties, such as a 19,000 odd sq ft apartment in Malabar Hills Mumbai, which costs almost ₹100 crore more than a bungalow in Golf Link Delhi. This data sheds light on the distinct FOMO driving the ultra-rich when it comes to acquiring desirable properties.
The surge in sales of luxury homes reflects a notable reshuffling of HNI investment portfolios as affluent individuals seek stability and security in the real estate market. As the demand for ultra-luxury homes continues to grow, developers are amplifying their efforts to cater to this escalating demand. It’s clear that the ultra-rich are investing heavily in ultra-luxury real estate, and the trend shows no signs of slowing down.