India’s luxury real estate market is experiencing an extraordinary boom—and it’s just warming up. The ultra-luxury segment, once thought to be niche, is rapidly expanding with even more extravagant projects in the pipeline. A prime example is DLF, the country’s largest real estate developer, set to launch its most expensive project to date—DLF The Dahlias, located on the sought-after Golf Course Road in Gurugram. Some may wonder who the buyers are for such high-end properties, but India’s wealthy are already lining up. DLF’s previous venture, The Arbour, saw an astonishing Rs 8,000 crore in pre-launch sales within just three days. It’s not just the big cities drawing in the wealthy—second home markets like Goa and Alibag are booming too. The recently launched Emaar Villas in Alibag has set off to strong sales further reinforcing the fact that the business of luxury and ultra-luxury homes is in its extraordinary boom phase.
Surging Wealth, Rising Demand
All signs point to a strong and growing demand for ultra-luxury residences, reflecting a surge in the wealth of India’s high net-worth individuals (HNI) and ultra-high net-worth individuals (UHNI). The 2024 Hurun Rich List paints a clear picture of India’s wealth explosion—1,539 individuals now boast a net worth of Rs 1,000 crore or more, a significant increase from last year. Real estate remains a favoured asset class for India’s billionaires, business moguls, startup founders, and celebrities, who continue to snap up prime properties despite steadily rising prices. Anant Ambani’s mother-in-law Shaila Merchant added to her luxury property portfolio, with her most recent purchase of a sea-facing luxury apartment in South Mumbai’s Prestige Ocean Tower.
Expanding Pie of Wealthy Buyers
It’s not just the industrial families. India’s startup ecosystem is embracing luxury real estate. Nikhil Kamath, co-founder of Zerodha, recently purchased his first home, reflecting a shift in mindset even among those previously averse to home ownership. Rikant Pittie of EaseMyTrip and Zomato’s Deepinder Goyal have also made significant property purchases, cementing luxury real estate as a must-have in the portfolios of India’s new-age entrepreneurs.
In 2023 and 2024 we saw other notable high-value transactions, like the Taparia family’s purchase of a Rs 369-crore triplex in Mumbai’s Lodha Malabar, and Asha Mukul Agrawal’s acquisition of three apartments for Rs 263 crore in the same building. This appetite for high-end properties is widespread—Ajit Isaac, founder of Quess Corp, secured a 10,000 sq. ft plot in Bangalore’s Billionaire Street for Rs 67.5 crore, while Bollywood stars like the Bachchans and actors such as Deepika Padukone and Ranveer Singh have made substantial real estate investments exceeding Rs 100 crore.
And this isn’t just a local trend. Indian-origin billionaires are acquiring ultra-luxurious homes abroad, such as Pankaj Oswal’s recent purchase of Villa Vari in Switzerland for Rs 1,649 crore, one of the most expensive homes in the world.
Growing Confidence
India is truly in the spotlight this decade, building more residential and commercial real estate than any other country. According to a report by Vestian, foreign investors have infused $436 million into India’s realty sector, reflecting a 140 per cent increase in the July-September, 2024 quarter. It is not surprising at all considering real estate mirrors the economy. India has clocked an impressive 8 per cent average GDP growth over the past three years. Luxury Outlook 2024 survey at India Sotheby’s International Realty showed, while lifestyle upgrades were a key motivator between 2021 and 2023, the tide is shifting. Now, 44 per cent of HNIs and UHNIs view capital appreciation as their main reason for investing in luxury properties. Investors are increasingly optimistic about the future of luxury real estate. According to our survey, 79 per cent of HNIs and UHNIs are bullish on India’s economic prospects, up from 59 per cent earlier this year. This is quite encouraging. And that is why this confidence translates into strategic investments aimed multi-generational wealth creation. Therefore, real estate in general and luxury real estate in particular continues to be an excellent asset to pass on to the next-gen.
Hedge Against Inflation
In addition to wealth creation, luxury real estate is increasingly seen as a hedge against inflation. Despite global uncertainties, India’s property sector remains resilient, with demand and prices expected to remain firm and buoyant in the coming years.
It is quite evident that the India’s luxury real estate market offers a potent combination of lifestyle upgrades, capital appreciation potential and inflation protection, making it a key investment for the country's wealthiest. Therefore, it is absolutely clear that the future for ultra-luxury real estate looks bright in India today and in the foreseeable future.
