Ultra-luxury homes (priced >Rs 40 crore each) have had an unprecedented bull-run in 2023, with both the number of sales and sales value of such assets hitting new peaks, said a report by ANAROCK Research. The report stated that the year 2023 till date has seen an yearly surge of 247 per cent in terms of total sales value of ultra-luxury homes against the whole of 2022.
Anuj Puri, Chairman, ANAROCK Group, said, “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 approx. Rs 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 approx. Rs 1,170 crore. In terms of ultra-luxury property sales, 2023 has already made Indian real estate history even before it is over.”
Elaborating on the genesis of this unmatched appetite for trophy homes, Anuj Puri said, “Demand for both luxury and ultra-luxury properties has surged since the pandemic, with 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 the existing geopolitical tensions.” This has also led to Grade A developers scaling up their new supply in the ultra-luxury category. “Among wealthy Indians, there is a very distinct FOMO aspect to securing the most desirable options before someone else does,” he added.
Further, the report maintained that of at least 58 ultra-luxury properties sold across the top 7 cities in 2023 so far, Mumbai alone sold 53 units priced >Rs 40 crore each – a 91 per cent share of the total deals across the top cities. At least four separate ultra-luxury home deals worth >Rs 40 crore each were closed in Delhi-NCR – two apartments in Gurgaon and two bungalows in New Delhi. Hyderabad witnessed one residential deal worth >Rs 40 crore at Jubilee Hills.
Now, of the 53 deals in Mumbai city, at least 3 were for price tags above Rs 200 crore and 7 deals were closed for between Rs 100- 200 crore each. At least two ultra-luxury homes in Delhi-NCR were sold for above Rs 100 crore each.
Apartments clearly remained the preferred property type for HNIs as of 58 deals, 53 were for apartments and the remaining five for bungalows. At least 79 per cent of the total deals were concluded by businessmen, and 16 per cent by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5 per cent.
A 2022 Retrospective
The Covid-19 pandemic unleashed a demand storm for the luxury and ultra-luxury homes segments. The collective data of 2022 and 2023 till date shows 71 ultra-luxury residential deals worth approx. Rs 5,233 crore closed in the top 7 cities.
Of the 13 deals worth approx. Rs 1,170 crore closed in 2022, at least 10 deals were for apartments and the remaining 3 for bungalows. While Mumbai accounted for 11 deals, the remaining two were closed in Delhi-NCR, and none of the remaining 5 top cities saw such large ticket value deals in 2022. The report further stated that of these 13 ultra-luxury homes sold in 2022, at least 9 deals were for units priced between Rs 100- 150 crore – all in Mumbai.