Mumbai Dominates Ultra-Luxury Real Estate Market
In 2023, Mumbai led the ultra-luxury real estate market with 53 homes sold above ₹40 crore. A total of 58 ultra-luxury homes were sold across seven major Indian cities, accumulating a sales value of ₹4,063 crore. This represents a 247% surge compared to the previous year, according to a research report by Anarock.
Ultra-Luxury Property Sales on the Rise
Compared to 2022, which saw only 13 ultra-luxury sales amounting to ₹1,170 crore, 2023 has experienced a significant increase in the highest-priced bracket. Out of the 58 properties sold, 53 were apartments, and five were bungalows. In contrast, 2022 saw 10 apartments and three bungalows sold. Key luxury hubs like Worli and Malabar Hill witnessed the highest number of transactions, while Delhi-NCR had two apartments in Gurgaon and two bungalows in New Delhi in the ultra-luxe category.
Who’s Buying Ultra-Luxury Properties?
The majority of ultra-luxury transactions (79%) were concluded by business tycoons, 16% by senior professionals, while politicians and Bollywood celebrities constituted a minor 5%. Super luxury apartments were preferred over bungalows by high-net-worth individuals.
The surge in ultra-luxury property investments can be attributed to the capping of capital gains benefits at ₹10 crore. Ultra-high-net-worth individuals strategically invested in luxury homes before the capping of capital gains benefits was implemented on April 1.
Reasons Behind the Surge in Ultra-Luxury Property Investments
Anuj Puri, Chairman of Anarock Group, noted that the demand for both luxury and ultra-luxury properties has surged since the pandemic, with high-net-worth individuals (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 existing geopolitical tensions.
Ashwin Chadha, CEO of India Sotheby’s International Realty, attributed the rise in ultra-luxury investments to India’s global economic impact, rising manufacturing, exports, and a flourishing start-up ecosystem. He emphasized that the demand for ultra-luxury properties is anticipated to maintain its upward trajectory.
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Orginal article: Link To Article – provided by Kansas City Realtors