Luxury Real Estate Market in India Witnesses Significant Surge in Sales
According to the latest research by real estate services company ANAROCK, a total of 58 ultra-luxury homes have been sold across the top 7 cities in India in 2023 to date. The report indicates that apartments continue to be the favored property choice among high net worth individuals (HNIs), comprising 53 out of 58 deals.
The surge in sales of luxury homes is attributed to a reconfiguration of HNI investment strategies. The report also reveals a distinct fear of missing out (FOMO) among affluent Indians, which drives urgency in acquiring the most desirable properties before others. This has contributed to a 247% annual increase in the total sales value of ultra-luxury homes from the beginning of 2023 compared to the entire year of 2022.
Anuj Puri, Chairman of ANAROCK Group, commented on the significant increase in ultra-luxury property sales, stating, “A total of 58 ultra-luxury homes have been sold across the top 7 cities in 2023 to date, for a collective sales value of approximately ₹4,063 Cr. In contrast, the whole of 2022 saw a total of 13 ultra-luxury homes sold in these cities for a total sales value of approximately ₹1,170 cr. In terms of ultra-luxury property sales, 2023 has already made Indian real estate history even before it is over.”
The research also indicates that approximately 79% of these transactions were carried out by business professionals, while the remaining 21% involved politicians and Bollywood celebrities. Additionally, concerns about potential stock market volatility and ongoing geopolitical tensions have prompted a shift in investment portfolios, leading to a notable inclination towards investing in ultra-luxury homes as a more stable and secure asset class.
The response from top-tier Grade A developers further validates this trend, as they are amplifying efforts to introduce more properties within the ultra-luxury category to cater to the escalating demand. The demand for luxury and ultra-luxury residences has notably increased post-pandemic, with HNIs and ultra-HNIs actively purchasing such homes for investment and personal use.
In terms of pricing, the research data reveals that a 19,000 sq ft apartment in Malabar Hills, Mumbai, costs almost ₹100 crore more than a bungalow in Golf Links, Delhi. The data also lists the total cost and area of various luxury properties across different micro-markets in Mumbai and Delhi.
The real estate market for ultra-luxury homes in India is currently witnessing a significant surge in sales, driven by shifting investment strategies among HNIs and a distinct fear of missing out among affluent Indians. This trend has led to increased demand for luxury and ultra-luxury residences, resulting in record-breaking sales in the Indian real estate history.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
