India’s rich and ultra-rich are lapping up properties priced upwards of ₹4 crore and the demand is being driven by young professionals like lawyers, doctors, start-up founders (including unicorns) and promoter families of recently-listed companies. Celebrity buyers are also a part of this brigade. A price rise of 30-40 per cent notwithstanding, many are using their resources – and going low on mortgages - to make such big-ticket purchases.

Delhi – NCR which includes bungalows in Lutyens and farmhouses in Chattarpur and Mumbai including Alibag, continue to be favourites. But Goa has emerged as one of the hottest destinations for the now younger buyers, mostly the millennials.

From upgrade requirements which drove demand nearly two years, the rich and ultra-rich are buying primarily for investment purposes that include anticipation of capital appreciation. Some own more than one such luxury property. As per Sotheby’s International Realty, 44 per cent of people buying luxury real estate are looking at a capital appreciation, almost double (22 per cent) the number last year; while only 23 per cent of buyers are looking at lifestyle upgrade (against 35 per cent last year).

Similarly, there is an increasing trend of owning farmhouses in suburbs or city peripheries, driven by the need for larger spaces, open green areas, work from home, privacy and amenities such as a private swimming pool, Sotherby’s findings say.

In the Chattarpur and Mehrauli – Gurgaon Road areas of Delhi, which are known for farmhouses, property prices have moved upwards of ₹10 crore and up to ₹100 crore.

According to Amit Goyal, MD India, Sotheby’s, out of holiday home buyers, nearly 35 per cent are looking at investments in Goa. While others have preferred hill-stations and other sea front destinations. “India’s ultra-wealthy are growing. The robust start-up eco-systems and a growing number of unicorns have added to the super-rich. The average buyer is also younger,” he told businessline.

The High Networth Individuals (HNIs) are defined as those having an average disposable income of ₹1 crore; while the ultra - HNIs (UHNIs) are ones with a net worth (including their business values) of ₹3.5 – 4 crore. As per Hurun India, the country’s billionaire numbers have taken a 38 per cent leap, y-o-y.

Goyal adds, income levels for the HNIs and UHNIs have seen a 30-40 per cent increase, primarily driven by market-linked portfolio appreciation, which also reflects in the commensurate price rise in luxury and ultra-luxury residences.

Rise of Luxury Homes

DLF’s luxury real estate offering Privana South in Gurugram was sold-out in 72 hours with the pre-formal launch garnering sales of ₹7,200 crores. The real estate major had sought a booking amount of ₹50 lakh and the average price of one apartment was ₹ 7 crore.

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.

Anuj Puri, Chairman, ANAROCK said, 2023 sales included 53 apartments and 5 bungalows. “In 2023, Mumbai saw 53 ultra-luxury residential deals, Delhi-NCR recorded 4 deals and Hyderabad saw one. At least 12 of these deals were over ₹100 crore each,” he said.

According to Amar Sarin, MD and CEO, TARC Ltd, demand continues to be good across the premium and super-luxury segments; with price points being upwards of ₹2 crore. Existing projects are witnessing appreciation too. TARC launched a project along the Delhi – Gurugram border at ₹15,000 per sq ft and over a one-year period there was a near 100 per cent appreciation to ₹30,000 per sq ft. Similarly, for its Patel Road project, there has been a 65 per cent-odd increase in prices to ₹25,000 -28,000 per sq ft, up from ₹16,000 – 17,000 per sq ft a year-back.

Knight Frank, which categorises premium residencies at those priced upwards ₹1 crore, maintained the segment witnessed an 82 per cent rise in demand y-o-y with 1,10,833 units being sold last year. The category overtook affordable housing sales; and one out of every three homes being sold in India was a premium one.