With rich young Indians investing in luxury and super-luxury homes and commercial real estate on an upswing, a host of global developers like Forbes Global Properties and Thailand’s MQDC are entering the country’s real estate landscape.
Developers are looking at partnerships, or development and management models targeting luxury residential projects. While the average price of such premium homes are pegged at over ₹5 crore, investments are being made in categories like co-working spaces, commercial real estate, among others.
Forbes Global Properties, which has operations in 26 countries, is entering India with at least three projects – covering development across 11 million sq ft of space – covering mixed usage spanning across residential, commercial and hospitality segments. Of this, 9 million sq ft is expected across Navi Mumbai in Maharashtra (primarily mixed use across residential and commercial); and the remaining 2 million sq ft will be spread across Delhi (1 million sq ft for hotel, club and commercial facilities) and another 1 million sq ft in Goa (for residential development).
“In Navi Mumbai we have already entered into a development deal for 100 acres at the Orange Smart City project while discussions are in advanced stages with developers in Goa and Delhi. These two should materialise over the next few weeks,” AK Sharma, Chairman of the Indian arm of Forbes Global Properties told businessline. Ahmedabad and Ayodhya are some other cities on the company’s radar.
According to him, Forbes will make direct investments towards development of projects, apart from exploring partnership models and project financing (through an own pool of investors) options. Projects would be in premium and luxury categories only, be it residential, or hospitality or commercial and retail.
Forbes will also enter the brokerage business in India – its core vertical globally; and is finalising tie-ups with premium developers for listing and sale of offerings. For one such project in Delhi – NCR region, where discussions are currently on-going, the average price of apartments will be upwards of ₹19 - 20 crore each, and listing will be for 20-odd properties.
“We are also in talks for investment in two brokerage firms. And these would be equity investments, ie we will have a stake in these firms,” Sharma said.
Boom in Luxury and Super-Luxury projects
Thailand-based realtor, MQDC (Magnolia Quality Development Corporation) is upping its investment here. It is looking at second co-working space in Gurugram, after the existing one in Delhi.
India’s super-luxury market is already witnessing a spate of launches including increased demand from start-up owners, young professionals, promoter families of recently listed companies, among others.
As per market research firm Prop Equity, from 5335 premium and super-premium projects (upwards of ₹5 crore) being launched in 2018, and valued at ₹40,000 crore; the segment saw 13275 launches in 2023 and was valued at ₹99,563 crore, indicating a 2.5x growth. Price rise is at least 50-60 per cent, if not 100 per cent in some cases of secondary sales.
As per ANAROCK, there were 58 ultra-luxury home sales, priced upwards of ₹40 crore in 2023 with sales valued at ₹4,063 crore. On a y-o-y basis, there was a 247 per cent rise in sales of ultra-luxury homes. In 2022, 13 ultra-luxury homes were sold for a total sales value of ₹1,170 crore.