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Ultra-luxury homes, valued at a minimum of ₹40 crore each, witness an unprecedented surge in demand, soaring by 247% year-on-year in 2023. Anarock’s report reveals key insights into this flourishing market, showcasing a total transaction value of ₹4,063 crore, a remarkable increase from the previous year.
Growing Demand Amidst Pandemic
The ongoing pandemic significantly influenced the surge in demand for luxury and ultra-luxury homes, resulting in a substantial ₹5,233 crore in residential deals between 2022 and 2023 across major cities in India.
Out of the 58 ultra-luxury properties sold this year, Mumbai took the lead with 53 homes changing hands. Remarkably, three homes in Mumbai surpassed the ₹200 crore mark, and seven transactions fell within the ₹100 to ₹200 crore range.
Expanding Luxury Real Estate Landscape
Luxury real estate players are aggressively expanding their footprint in this lucrative segment. Notable mentions include the Oberoi Group’s entry into the Delhi-NCR market and Thai luxury real estate group MQDC introducing properties in Gurugram.
In Delhi-NCR, four ultra-luxury deals, each exceeding ₹40 crore, were closed—two in Gurugram and two in New Delhi. Additionally, Hyderabad saw a notable residential deal worth over ₹40 crore in the prestigious Jubilee Hills area.
Among high-net-worth individuals (HNIs), apartments emerged as the favored property type, constituting 53 out of the 58 deals. Bungalows accounted for the remaining transactions. Businessmen led the buyer demographic, representing 79% of the purchasers, while senior professionals secured 16% of the deals. The report also acknowledged the involvement of politicians and Bollywood celebrities in these transactions.
Transformative Surge in the Market
Chairman of Anarock Group, Anuj Puri, emphasized the transformative surge in demand, with 58 ultra-luxury homes collectively valued at ₹4,063 crore. Compared to 2022, which saw only 13 such homes sold with a total value of approximately ₹1,170 crore, this marks a remarkable shift in the market dynamics.
Puri attributed the heightened demand to HNIs and ultra-HNIs reshuffling their investment portfolios amid anticipated stock market volatility due to geopolitical tensions. He noted a distinct Fear of Missing Out (FOMO) aspect among wealthy Indians, prompting leading Grade A developers to expand their ultra-luxury supply.
Pandemic Impact
The report underscores the pandemic’s role as a catalyst for the surge in luxury and ultra-luxury home demand. Cumulative data from 2022 and 2023 illustrates that India’s top seven cities witnessed ultra-luxury residential deals amounting to approximately ₹5,233 crore.
