India’s Ultra-Luxury Homes Witness 247% Sales Value Surge in 2023
India’s ultra-luxury homes, priced below Rs 40 crore, have seen a remarkable bull-run in 2023, with a 247% yearly surge in total sales value compared to 2022, according to an Anarock report. The growth in the ultra-luxury segment is a result of increasing demand from High Net-worth Individuals (HNIs) and Ultra-HNIs who are investing in such properties for personal use or as part of their investment portfolio.
Impressive Sales Figures
Anarock Group Chairman Anuj Puri revealed that 58 ultra-luxury homes have been sold across the top 7 cities in 2023 to date, for a collective sales value of approximately INR 4,063 crore. 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 INR 1,170 crore. These impressive figures have already made Indian real estate history in 2023, even before the year is over.
Preferred Property Types
Out of the 58 homes sold in 2023, 53 were in Mumbai alone, accounting for a 91% share of the total deals. Delhi-NCR recorded four deals, with two ultra-luxury homes in Gurgaon and two bungalows in Delhi. One unit was sold in Hyderabad. Apartments were the preferred property type for HNIs, with 53 out of 58 deals involving apartments and the remaining five involving bungalows.
At least 79% of the total deals were concluded by businessmen, and 16% by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5%.
Market Trends and Influencing Factors
Anuj Puri explained that the demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs and ultra-HNIs looking to reshuffle their investment portfolios amid anticipated stock market volatility due to existing geopolitical tensions. This trend has led to an increase in demand for ultra-luxury homes as a relatively stable investment option.
Moreover, the pandemic has led to a shift in the preferences of HNIs and ultra-HNIs, who now prioritize personal use alongside investment purposes when buying luxury properties. This has further contributed to the growth of the ultra-luxury homes market in India.
India’s ultra-luxury homes market has seen a remarkable growth in 2023, with a significant surge in sales value compared to the previous year. This growth is attributed to the changing preferences 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.
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