NCR luxury real estate: Capital appreciation takes centre stage as rich Indians and NRIs ramp up investments

HNIs and NRIs preferring investment in luxury residential real estate due to good capital appreciation

Once solely desirable for opulent living spaces, luxury real estate today has become a big investment avenue for affluent Indians to make huge capital gains.
According to real estate experts, the burgeoning demand for luxury living in the National Capital Region, particularly in Gurugram, has led to a notable capital appreciation in the market.

They said that luxury and super-luxury residences located at DLF Golf Links, DLF 5 in Gurugram such as The Camellias, The Magnolia and The Aralias have witnessed a price appreciation of around 125 percent between 2021 and 2024.

There has been a significant rise in demand for high-end luxury properties because of the shift in homebuyers’ growing desire to invest in a place not only to live but also as a high-quality asset with good returns.

Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF, said that the rise in wealth creation has expanded the luxury real estate market, driven by economic resilience among the affluent segments, who view real estate as not only an appreciating asset but also one with tangible and intrinsic value.

“Additionally, the interest of the Indian diaspora in investing back in the country, fuelled by emotional ties, favourable currency exchange rates, and simplified investment processes, has further bolstered the demand for luxury properties,” Ohri said.

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Where are HNIs buying?

In January 2024 a 10,813 square feet unit was bought by Smiti Agarwal, wife of Hemant Agarwal, CMD of retail giant V-Bazaar, for Rs 95 crore at DLF The Camellias in Gurugram. Similarly, in October 2023 an 11,000 sqft apartment was sold for Rs 114 crore at The Camellias. Situated at the upscale Golf Course Road, The Camellias has become a sought-after residential project for business tycoons and start-up entrepreneurs. As per sources, founders of at least a dozen start-ups have invested in luxury residences at The Camellias.

MakeMyTrip founder Deep Kalra, Den Networks Sameer Manchanda, Boat’s Aman Gupta and entrepreneur Ashish Gurnani have bought super-luxury flats in DLF The Camellias.

Also Read: Wife of former Attorney General of India buys Rs 160 crore bungalow in Delhi's Golf Links

In February 2023 Vasudha Rohatgi, wife of former attorney general of India Mukul Rohatgi, bought an 18,900 sqft bungalow in tony Golf Links for Rs 160 crore. In the same month, businessman Bhanu Chopra, founder of RateGain, purchased a bungalow in Golf Links for Rs 127.5 crore.

Shashank Vashishtha, Executive Director, Exp Realty India, said, “The burgeoning demand for luxury living in the NCR has led to a notable capital appreciation in the market. Golf Course Road, DLF 5 and Golf Links stand out as the premier choice for HNIs and NRIs looking for luxury and super-luxury residences.”

Capital appreciation

Real estate brokers said that super luxury residences located at DLF Golf Links such as DLF The Aralias have surged from Rs 12.5 crore in 2021 to Rs 27 crore onwards as of January 2024. Prices in DLF The Magnolias have surged from Rs 16 crore in 2021 to Rs 35.5 crore onwards in 2024. Similarly, prices of apartments in DLF The Camellias skyrocketed from Rs 33-35 crore in 2021 to Rs 75 crore onwards in 2024.

They say that similar has been the story with other ultra-luxury properties in terms of capital appreciation, making the luxury real estate a good investment option for HNIs. TARC Tripundra, situated opposite Pushpanjali Farms in New Delhi, has witnessed a 70 percent appreciation in the last 18 months with current rates soaring to 26,000 per square foot (psf).

Also Read: DLF flat in Gurgaon sold for Rs 100 crore: Luxury property deal narrows gap with Delhi

Siddharth S Sharma, GM Sales, Elitepro Infra, a real estate consultancy, said that price rise in the luxury segment has been skyrocketing in Gurugram prime locations such as Golf Course Road, Golf Course Extension and Southern Peripheral Road. Such is the demand for luxury residences that DLF sold out a luxury housing project within just 72 hours.

“Projects in other micro markets like M3M's Trump Towers have witnessed capital appreciation from an initial 10,500 psf at launch to 30,500 psf at present. Another example is DLF's The Crest, which has seen its value appreciate from 13,000 psf to between 38,000 and 40,000 psf today. These figures affirm that investing in luxury real estate remains a steadfast option,” he said.

Also Read: DLF’s luxury housing project sold out in 72 hours in Gurugram in pre-sales for over Rs 7,200 crore

Why are HNIs and NRIs investing in luxury real estate?

Sankey Prasad, Chairman and MD, India and CMD Middle East Project Leaders at Colliers, said that while the strengthening of the US Dollar against the Indian rupee is attracting NRIs, capital appreciation is driving HNIs to invest in the luxury residential real estate segment.

“Around 44 percent of HNIs are interested in investing in luxury real estate because of capital appreciation. This is a significant factor as it is motivating them to build assets for future generations and utilise their luxurious properties to generate income. Wealthy homebuyers are not worried about the 40 percent price increase in luxury homes over the last two years because they believe that the Reserve Bank of India (RBI) will reduce interest rates in 2024 making it more affordable for them to buy such properties,” he told Moneycontrol.

Also Read: 71% of wealthy Indians seek luxury real estate, Goa top hotspot for vacation homes: ISIR Survey