The price of luxury in India's most popular cities

Vineet Singh 99acres.comNothing defines affluence like property does. A swanky address in a choice tony neighbourhood is coveted by the rich and the famous who are ready to pay a ransom to acquire properties that will prop up their social stature. Delhi

In Delhi, luxury is all about the address. There is no dearth of affluence, of people who are ready to shell out a fortune for a Hailey Road or an Aurangzeb Road address. The more limited the supply, the more is the demand-somewhat non intuitive from an economic point of view but nevertheless a modern day reality. A 1.3 acre bungalow on 2 Hailey Road near Connaught Place -bought by Tata Housing for a rumoured Rs 250 crore in 2012- will be razed to make way for 4 or 5 super-luxury signature villas. This will come at a price of Rs 130-Rs 170 crore, these villas will set new benchmarks for gated living and will be, arguably, the country’s priciest properties.In the National Capital Region, luxury properties are being launched northward of Rs 10 crore. For instance, villas in Marbella, Emmar MGF’s upcoming project in Gurgaon, will be priced around Rs 9 to 12 crore. Similarly, Supertech’s Supernova in sector 94, Noida will have 100 residences from Armani/Casa sized between 3,000 square feet and 5,000 square feet which will be priced around Rs 10 crore to Rs 25 crore. There are more: DLF’s Capital Green near Moti Nagar, Godrej Properties’ 5-acre upcoming luxury group housing project at Okhla, Parsavnath’s retail-cum-office complex, The Parsavnath 27 on Kasturba Gandhi Marg and DLF’s King’s Court and Queen’s Court in Greater Kailash – II priced at Rs 20-35 crore.Bangalore

When compared with the country’s other prominent cities, Bangalore’s luxury real estate is more reasonable. Vittal Mallya Road, Richmond Road, Cunningham Road, Sadashivnagar and Ulsoor Road are among the city’s more prestigious addresses. Independent houses are slowly giving way to apartment complexes.Residential properties on the Vittal Mallya Road are currently priced between Rs 27,000 to Rs 30,000 per square foot. Property on Richmond Road comes at a price range of Rs 42,000 to Rs 45,000 for a square foot. Prices of real estate on Sankey Road are around Rs 29,000 to Rs 30,000 per square foot.A typical luxury apartment in Bangalore costs anywhere between Rs 6 crore and Rs 30 crore – a very reasonable proposition when compared to the exorbitant prices realty in premium locations of cities such as Delhi and Mumbai command.Koramangala and Indiranagar are home to first generation rich entrepreneurs and the city’s noveau riche. The price of a luxury apartment in these locations ranges between Rs 9,000 and Rs 12,000 per square foot of area. Bangalore’s upcoming luxury home destinations are evolving in the vicinities of Satya Sai Ashram, International Tech Park and Whitefield. Lavish villas developed by realty majors such as Total Environment, the Prestige Group, and Adarsh Developers among others abound in these neighbourhoods. Priced between Rs 3 crore to Rs 30 crore, the per square foot cost of these villas comes to about Rs 10,000.Mumbai

Mumbai is the 16th most expensive city globally so far as residential real estate is concerned. As opposed to other premier cities, the dynamics of Mumbai’s luxury real estate has evidenced a sea-change over the last decade. Location has ceased to be of consequence in India’s financial capital. Whereas location premiums have steadily risen in metros such as Delhi, Chennai and Kolkata –Chennai’s Boat Club Road, Kolkata’s Ballygunge and Delhi’s Jor Bagh localities continue to command a premium -  Mumbai’s prestigious neighbourhoods – Marine Drive, Cuff Parade and Pedder Road among others have been in the throes of a slowdown with respect to demand, sales, price appreciation and leasing in the last five years.With the Central Business District (CBD) shifting to Bandra Kurla Complex (BKC), focus for luxury properties has shifted from South Mumbai to Worli, Mahalakshmi and Jacob Circle. Moreover, with South Mumbai’s traditionally opulent neighbourhoods such as Malabar Hill and Altamount Road becoming saturated, they are making way for Lower Parel and Worli as the new pockets of affluence. Worli is popular because of its proximity to the sea link towards the CBD. Bandra, Santacruz and Khar are popular residence options for corporate employees working in the BKC. Lodha Developers’ World One, Omkar Realtors’ Omkar 1973 and K Raheja Group’s upcoming project in Worli will feature super –luxury apartments commanding prices of a hundred crore and more.The slump in the sale of ultra-luxury properties since late 2012, has not deterred prominent developers from launching new projects. With the country’s increasing number of dollar millionaires seeking signature homes, it is only a matter of time before the current torpor gives way to high buyer sentiment.