Ultra-Luxury Homes Favored by High Net Worth Individuals in India
A new report by real estate services company ANAROCK reveals that a total of 58 ultra-luxury homes have been sold across the top 7 cities in India in 2023. Apartments remain the preferred choice among high net worth individuals (HNIs), comprising 53 out of 58 deals, while the remaining five transactions were for bungalows. These transactions have contributed to a collective sales value of approximately ₹4,063 crore.
The report uncovers interesting insights into the buying behavior of the ultra-rich. Affluent Indians have a discernible fear of missing out (FOMO) when it comes to securing the most coveted properties, leading to an urgency to acquire the most desirable options. Notably, ANAROCK Research data reveals 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.
As Anuj Puri, Chairman of ANAROCK Group, points out, 2023 has already made Indian real estate history with the surge in sales of ultra-luxury homes. The chairman attributes the increased interest and transactions in this niche market segment to heightened concerns about potential stock market volatility, prompting a shift in investment portfolios among HNIs.
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. Furthermore, top-tier Grade A developers are responding to this trend by introducing more properties within the ultra-luxury category to cater to escalating demand.
The surge in ultra-luxury home sales underlines the notable reshuffling of HNI investment portfolios, as concerns about potential stock market volatility have led to a shift in investment strategies. As property demand remains high across India’s top cities, luxury apartments have continued to be the favored choice among HNIs, with real estate activity in Mumbai leading the pack. For instance, a 19,000 odd square foot apartment in Malabar Hills Mumbai costs almost ₹100 crore more than a bungalow in Golf Link Delhi. The real estate market continues to show no signs of slowing down, paving the way for a thriving ultra-luxury home segment.
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