Ultra-luxury home sales’ value grew 247% in 2023

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

Hyderabad: Sales of ultra-luxury homes, costing above Rs 40 crore each, have surged more than four-time to 58 units so far this year in the top seven cities and over a three-fold jump value-wise to Rs 4,063 crore on high demand from the super-rich, according to a report.

Real estate consultant Anarock Group’s data showed that all 58 deals were in three cities -- Mumbai Metropolitan Region (MMR), Delhi-NCR and Hyderabad. The MMR witnessed a whopping 53 transactions. Chennai, Kolkata, Bengaluru and Pune did not see any sales in the ultra-luxury segment.

In terms of buyer profiles, Anarock said that around 79 per cent of the deals were closed by business owners and 16 per cent by C-suite professionals. Politicians and Bollywood celebrities accounted for the remaining 5 per cent. During the entire 2022 calendar year, 13 ultra-luxury units valuing Rs 1,170 crore were sold across seven major cities.

The MMR accounted for 11 deals and Delhi-NCR saw two sales in over Rs 40 crore price bracket. The remaining five cities did not see such large ticket-value deals in 2022. Out of 58 units sold so far this year, 53 units (worth Rs 3,743 crore) are apartments and 5 bungalows (worth Rs 320 crore).

In the last full year, out of 13 units sold, 10 were apartments (worth Rs 730 crore) and three were bungalows (valuing Rs 440 crore). "Demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs (High Net Worth Individuals) and ultra-HNIs buying such homes for investment, personal use, or both," Anarock Chairman Anuj Puri said.

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, he noted. Of the 58 ultra-luxury properties sold across the top 7 cities in 2023 so far, Mumbai alone sold 53 units.

At least four ultra-luxury home deals were closed in Delhi-NCR -- two apartments in Gurugram and two bungalows in New Delhi. Hyderabad witnessed one residential deal above Rs 40 crore at Jubilee Hills. Of the 53 deals in Mumbai, at least three were for price tags above Rs 200 crore.

Incidentally, all three deals were closed by Anarock, the consultant said. As many as seven deals were closed between Rs 100 crore and Rs 200 crore each. At least two ultra-luxury homes in Delhi-NCR were sold for above Rs 100 crore each.

"In recent years, there has been a notable surge in the aspiration for home ownership across various income levels, driven largely by an improved economic landscape and a desire to elevate living standards," Gurugram-based Krisumi Corporation Managing Director Mohit Jain said.

Among affluent families and individuals, Jain said there is an apparent increase in the desire to acquire superior and more spacious homes than their peers.