Ultra-luxury homes priced more than Rs 40 cr see over 200% YoY surge in sales value in 2023

Ultra-luxury homes priced more than Rs 40 crore witness over 200 percent Y-o-Y surge in sales value in 2023

Ultra-luxury properties priced more than Rs 40 crore each have witnessed a surge in terms of sales and the total sales value in 2023 as against the whole of 2022. As many as 588 ultra-luxury homes have been sold across the top seven cities in 2023 to date for a collective sales value of approximately Rs 4,063 crore compared to 13 ultra-luxury homes sold in these cities for a total sales value of approximately Rs 1,170 crore, Anarock Research data has shown.

Mumbai dominated with 53 ultra-luxury residential deals in 2023, comprising a 91 percent share of total deals; Delhi-NCR recorded four deals for two ultra-luxury homes in Gurgaon and two bungalows in Delhi; Hyderabad saw one deal worth more than Rs 40 crore. At least 12 deals in 2023 were worth more than Rs 100 crore each - 10 such deals in Mumbai and two in Delhi-NCR. In terms of buyer profiles, around 79 percent of the deals were closed by business owners and 16 percent by C-suite professionals, the data showed.

“Demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs and ultra-HNIs buying such homes for investment, personal use, or both. The upsurge in demand for ultra-luxury homes can also be traced to the reshuffling of HNI investment portfolios amid the anticipated volatility in the stock market due to the existing geopolitical tensions. Not surprisingly, leading Grade A developers have also been scaling up their new supply in the ultra-luxury category. Among wealthy Indians, there is a very distinct FOMO (fear of missing out) aspect to securing the most desirable options before someone else does,” said Anuj Puri, Chairman – ANAROCK Group.

Of at least 58 ultra-luxury properties sold across the top seven cities in 2023 so far, Mumbai alone sold 53 units priced more than Rs 40 crore each - a 91 percent share of the total deals across the top cities. At least four separate ultra-luxury home deals worth more than Rs 40 crore each were closed in Delhi-NCR - two apartments in Gurgaon and two bungalows in New Delhi. Hyderabad witnessed one residential deal worth more than Rs 40 crore at Jubilee Hills.

Of the 53 deals in Mumbai city, at least three were for price tags above Rs 200 crore, and seven deals were closed for between Rs 100 to Rs 200 crore each. At least two ultra-luxury homes in Delhi-NCR were sold for above Rs 100 crore each.

Apartments clearly remained the preferred property type for HNIs as of 58 deals, 53 were for apartments, and the remaining five were for bungalows. At least 79 percent of the total deals were concluded by businessmen, and 16 percent by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5 percent.

The Covid-19 pandemic unleashed a demand storm for the luxury and ultra-luxury homes segments. The collective data of 2022 and 2023 till date, showed that 71 ultra-luxury residential deals worth approximately Rs 5,233 crore were closed in the top seven cities (Mumbai, Delhi-NCR, Hyderabad, Chennai, Bengaluru, Kolkata, and Pune).

Of the 13 deals worth approximately Rs 1,170 crore closed in 2022, at least 10 deals were for apartments and the remaining three for bungalows. Mumbai accounts for 11 deals and the remaining two were closed in Delhi-NCR. Interestingly, none of the remaining five top cities saw such large ticket-value deals in 2022. Of the 13 ultra-luxury homes sold in 2022, at least nine deals were for units priced between Rs 100 to Rs 150 crore – all in Mumbai City.

Ashwin Chadha, CEO, India Sotheby's International Realty said that the surge in new opportunities in various sectors like global manufacturing in India, rising exports, and a robust startup ecosystem has strengthened economic momentum and contributed to wealth creation in the country. This, in turn, has led to an increase in the number of wealthy individuals in India, with the noteworthy trend of a declining average age among billionaires. The emerging generation of young and affluent individuals are investing their wealth in ultra-luxury properties. Even celebrities like Alia Bhatt and Suhana Khan have invested in flats and farmlands respectively.

Subsequently, old and traditional business families are showing a willingness to invest in expansive ultra-luxury properties, resulting in a notable uptick in both demand and transactions within this segment, he said.

As the number of billionaires in India is projected to grow significantly, over 100 percent growth by 2027, the demand for ultra-luxury properties is anticipated to sustain its upward trajectory, he added.