The year 2024 was known for luxurious life. Launch of housing projects meaningful around 10 crores 80 crore made one thing clear – that demand was tilted towards luxury and ultra-luxury homes and real estate developers left no stone unturned in launching projects that catered to buyers looking for spacious properties, Which can accommodate their lifestyle and long-term investment goals.
Demand for luxury and ultra luxury homes increased among wealthy Indians and this was mainly due to some launches in the luxury housing segment and the fear of missing out (FOMO) of the most desirable properties in the city. There is low supply due to high demand for luxury properties, especially in markets like Mumbai, Gurgaon and Delhi. Real estate experts say wealthy investors in Delhi, who earlier used to buy bungalows, are now preferring housing communities with modern amenities, especially dedicated parking space which is a major challenge.
It’s not just the amenities that are attracting well-heeled people to luxury communities apartments are valuable 80 crores and more. This is gentry. This is where they get a chance to live and interact with people who have made it big, people from the high society. The clubhouse at these condominiums provides a platform for them to make business deals while playing poker or getting investments approved at the salon while getting pedicures.
If ultra luxury units are worth it Investors are losing Rs 80 crore in just a few days in Gurugaon, Noida is also not behind. Recently, established developers are launching more and more projects in Noida. 5 crore rangeThis is because land has become scarce in Noida and also due to substantial infrastructure upgrades like the upcoming Noida International Airport across the city. A developer reportedly offered buyers a free Lamborghini with the purchase of a villa Rs 26 crore in Noida.
as set forth Bangalore’s most expensive land dealAjit Isaac, founder and chairman of staffing company Quess Corp, bought a 10,000-square-foot plot 70,300 per square foot, or total Rs 67.5 crore earlier this year. In July, a residential property was sold 47.5 crores in Indiranagar area.
According to a recent report titled HSBC’s Global Entrepreneurial Wealth Report 2024, which provides information about the outlook of wealthy business owners around the world, including the investment habits of India’s high net worth and ultra high net worth business owners, out of ten Nearly one in six (61%) Indian wealthy business owners allocate personal wealth to real estate for their own use, compared to one in two (51%) globally.
Wealthy Indian entrepreneurs also use their wealth primarily for investments. The report said more than eight in ten (82%) of India’s wealthy business owners are investing in stocks, bonds and real estate – the highest percentage among business owners in the top 10 global markets.
Another report by Anarock showed that of the 25 deals closed in cities this year, nine were of large size 100 crore each, and the collective sale price 1,534 crores. In contrast, there were 10 big deals worth collective sales value throughout 2023 1,720 crores.
A total of 25 ultra-luxury homes cost more than Sales in Mumbai, Hyderabad, Gurugram and Bengaluru in the first eight months of 2024 were approximately Rs 40 crore at a collective selling price. 2,443 cores, ANAROCK data revealed.
Of the 25 ultra-luxury properties sold in top cities so far in 2024, a collective 21 units were sold in Mumbai alone ₹2,200 crore – 84% share of total deals in this segment in top cities. At least two different ultra-luxury home deals worth collectively Rs 80 crore closed in Jubilee Hills, Hyderabad. An ultra-luxury home sold in Gurugram in NCR 95 crores, while Bengaluru also closed a deal 67.5 crore, it showed.
So, what is driving wealthy Indian business owners to invest in multiple properties in India and abroad?
At least 80% of the total deals were concluded by businessmen and 12% by senior professionals from various sectors. The remaining 8% stake was held by Bollywood celebrities and prominent legal and medical professionals. Experts said many buyers are booking profits from the stock market and investing in real estate, most of them for self-use.
Increasing wealth: The increase in the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) is an important driver. 2024 Hurun Rich List Boasts a net worth of 1,539 individuals, highlights a rise Rs 1,000 crore or more.
Capital Appreciation: As many as 44% of HNIs and UHNIs saw capital appreciation as the primary reason for investing in luxury properties, apart from lifestyle upgrades, according to India Sotheby’s International Realty. This approach has been validated – seeing luxury real estate prices increase by more than 15% annually in most top-end markets over the past three years.
Wealth Creation and Legacy Building: “Strategic investment in luxury real estate is viewed by India’s UHNIs as a tool for multi-generational wealth and legacy building,” says Amit Goyal, MD, India Sotheby’s Realty.
Inflation Hedge: That said, UHNIs are bullish and financially savvy – they understand the value of luxury real estate as a hedge against inflation and offering stability.
Lifestyle and Status: Lifestyle upgrading remains a driver, with high-end properties offering exclusivity and status. In fact, real estate projects with excellent amenities have the highest potential for appreciation, he says.
Economic Confidence: Growing confidence in India’s economy, he said, with 79% of HNIs and UHNIs enthusiastic about the economic prospects, encourages investment.
In which cities are rich Indians investing?
Major metro areas like Mumbai, Delhi-NCR, Bengaluru and Gurugram are top choices. For example, DLF’s ultra-luxury projects on Golf Course Road in Gurugram and high-value transactions in Lodha, Oberoi in Mumbai, the projects reflect strong domestic demand. Demand for luxurious villa properties is increasing rapidly in second home destinations like Goa and Alibaug, which are selling like hot cakes.
“Indian-origin billionaires are also making ultra-luxury purchases abroad. Dubai, New York, London and even select destinations in Europe are among the destinations UHNIs aspire to have in their portfolio. For example – Acquisition of Villa Veri in Switzerland by Pankaj Oswal 1,649 crore,” explains Goyal.
How many assets do HNIs own?
HNIs are discretionary and there is no verified data to arrive at this average. “From our experience we can say that UHNIs own multiple properties – most have at least two high-end properties in the city of their primary residence – which could be a combination of a bungalow or a farmhouse, luxury apartments. Additionally, they have secondary homes in leisure destinations, and will also have an international property, right at the top of wealthy Indian families,” explains Goyal.
Are the new ultra-luxury launches targeted at this segment?
Real estate experts say most of the listed developers like DLF, Oberoi, Lodha, Prestige, Embassy are targeting this affluent class. In fact, even developers who were not into the luxury segment are getting attracted towards it and launching luxury projects.
“The growing wealth and appetite of HNIs and UHNIs is encouraging developers to increasingly expand the luxury and ultra-luxury segment with exceptional offerings,” Goyal said.
The luxury housing segment consisting of priced units CBRE South Asia Pvt Ltd in its report titled India Market Monitor Q3 2024 – Residential said sales of Rs 4 crore and above witnessed a growth of about 37.8% during the January-September 2024 period due to higher demand.
“India’s luxury housing market is witnessing significant growth, which is reflected in the increase in sales. We also expect growing demand in the high-end and premium segments, including Noida, Bengaluru, Pune and Chennai. As the traditional mid-range market is increasingly moving towards luxury developments, premiumisation of amenities will be a key differentiator in luxury projects. ”said Anshuman Magazine, President and CEO – India, South-East Asia and Africa.
