India’s Ultra-Luxury Housing Market Experiences Unprecedented Growth in 2023
India’s ultra-luxury housing market, which includes apartments and bungalows priced over Rs 40 crore, has witnessed a significant increase in sales and value in 2023. According to real estate consultancy Anarock, 58 ultra-luxury homes have been sold across the top seven cities in India, a more than four-fold jump compared to the 13 homes sold in 2022.
A Surge in Sales Value
The total value of ultra-luxury homes sold in 2023 amounts to Rs 4,063 crore, a 247% increase over the Rs 1,170 crore worth of homes sold in 2022. This remarkable growth in the ultra-luxury segment is attributed to the pandemic’s impact on high net worth individuals (HNIs) and ultra-HNIs, who are increasingly purchasing luxury properties for investment, personal use, or both.
Mumbai Dominates the Market
Of the 58 ultra-luxury homes sold in 2023, Mumbai accounted for 53 homes priced upwards of Rs 40 crore, capturing a 91% share of the total deals across the top cities. At least three deals in Mumbai were for homes priced at a steep Rs 200 crore plus, and seven other deals were closed at prices between Rs 100-200 crore. Delhi also saw the sale of at least two ultra-luxury homes for over Rs 100 crore.
Preference for Apartments
Out of the 58 ultra-luxury homes sold in 2023, 53 were apartments, indicating a clear preference for apartments among HNIs. Businessmen concluded at least 79% of the total deals, senior professionals from various sectors accounted for 16%, and politicians and Bollywood celebrities made up the rest, according to the Anarock report.
Factors Contributing to the Growth
Anuj Puri, Chairman of the Anarock Group, attributes the upsurge in demand for ultra-luxury homes to the reshuffling of HNI investment portfolios amid anticipated stock market volatility due to existing geopolitical tensions. In addition, the surge in new opportunities in sectors such as global manufacturing in India, rising exports, and a robust startup ecosystem has strengthened economic momentum and contributed to wealth creation in the country.
Ashwin Chadha, CEO of India Sotheby’s International Realty, adds that the emerging generation of young and affluent individuals is investing their wealth in ultra-luxury properties, while old and traditional business families are also showing a willingness to invest in expansive ultra-luxury properties, resulting in a notable uptick in demand and transactions.
Conclusion
India’s ultra-luxury housing market has experienced unprecedented growth in 2023, with a sharp increase in both the number of units sold and their value. This growth can be attributed to the changing preferences and investment strategies of HNIs and ultra-HNIs, who are increasingly investing in luxury properties amid market uncertainties. As demand for ultra-luxury homes continues to rise, it remains to be seen how the market will adapt to cater to this affluent segment of the population.
Related: Ultra-luxury housing market booming; Rs 4,000 cr worth homes priced above Rs 40 cr sold this year
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