Boom Time For Ultra-Luxury Housing
In the dazzling real estate landscape of 2023 (January-November), the ultra-luxury housing market, flaunting price tags exceeding Rs 40 crore each, is basking in an unprecedented bull-run, according to the latest research from ANAROCK, a distinguished property consultancy firm. This year has witnessed a spectacular surge, with the number of ultra-luxury homes sold (as of November 30, 2023) across the top-7 cities skyrocketing to almost 4.5 times the figures from 2022. In terms of value, the leap is equally impressive, standing at 3.5 times the 2022 numbers.
Anuj Puri, the Chairman of ANAROCK Group, joyfully exclaimed, "Latest ANAROCK Research data reveals a jaw-dropping 247 percent yearly surge in the total sales value of ultra-luxury homes for the year 2023 so far, eclipsing the entirety of 2022."
Delving into the research findings, Puri shared the exciting news that a total of 58 ultra-luxury homes have already been snapped up across the top-7 cities in 2023, accumulating a collective sales value of approximately Rs 4,063 crore. This stands in stark contrast to the entire year of 2022, which saw a mere 13 ultra-luxury homes changing hands in these cities, amounting to a total sales value of around Rs 1,170 crore. Puri added, "In terms of ultra-luxury property sales, 2023 has already etched its name in Indian real estate history, even before the year concludes."
CEO of India Sotheby's International Realty, Ashwin Chadha, shed light on the phenomenon, attributing it to the rising generation of young and affluent individuals channeling their wealth into ultra-luxury properties. Notably, even celebrities like Alia Bhatt and Suhana Khan have joined the trend, investing in flats and farmland, respectively. Puri chimed in, affirming, "Among wealthy Indians, there is a very distinct FOMO (fear of missing out) aspect to securing the most desirable options before someone else does."
The catalyst for this surge, according to Chadha, is the abundance of new opportunities across various sectors, including a surge in manufacturing, rising exports, and a robust startup ecosystem that has propelled economic momentum, leading to wealth creation in India. Puri added, "This, in turn, has led to an increase in the number of wealthy individuals in India, with the noteworthy trend of a declining average age among billionaires," said Chadha.
Elaborating on the unprecedented appetite for trophy homes, Puri highlighted, "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 increased demand can also be linked to the reshuffling of HNI investment portfolios amid anticipated stock market volatility due to existing geopolitical tensions. Notably, leading Grade A developers are scaling up their new supply in the ultra-luxury category.
Breaking down the numbers further, Mumbai stole the spotlight by selling 53 out of at least 58 ultra-luxury properties in 2023, commanding a staggering 91 percent share of the total deals across the top cities. Delhi-NCR secured four separate ultra-luxury home deals, with two apartments in Gurgaon and two bungalows in New Delhi. Meanwhile, Hyderabad witnessed a residential deal worth over Rs 40 crore at Jubilee Hills.
In this extravagant real estate journey, apartments remained the preferred property type for HNIs, with 53 out of 58 deals being for apartments and the remaining five for bungalows. Businessmen led the charge, concluding at least 79 percent of the total deals, followed by senior professionals at 16 percent. Politicians and Bollywood celebrities contributed the remaining 5 percent. Reflecting on 2022, Mumbai dominated with 11 deals, while Delhi-NCR closed the remaining two. Interestingly, none of the other top 5 cities witnessed such substantial high-value deals in 2022. The stage is set, and 2023 is already making waves in the realm of ultra-luxury real estate.
