Ultra-luxury homes (priced >Rs 40 Cr each) have had an unprecedented bull-run in 2023, with both the number of sales and sales value of such assets hitting new peaks. Latest Anarock Research data finds that the year 2023 till date has seen a staggering 247% yearly surge in terms of total sales value of ultra-luxury homes against the whole of 2022.
Mumbai leads other cities
Of at least 58 ultra-luxury properties sold across the top 7 cities in 2023 so far, Mumbai alone sold 53 units priced >Rs 40 crore each – a 91% share of the total deals across the top cities.
At least four separate ultra-luxury home deals worth >Rs 40 crore each were closed in Delhi-NCR – two apartments in Gurgaon and two bungalows in New Delhi. Hyderabad witnessed one residential deal worth >Rs 40 Cr. at Jubilee Hills.
Of the 53 deals in Mumbai city, at least 3 were for price tags above Rs 200 crore – incidentally, all three closed by Anarock- and 7 deals were closed for between Rs 100 – 200 Cr each. At least two ultra-luxury homes in Delhi-NCR were sold for above Rs 100 crore each.
Apartments a top choice
Apartments clearly remained the preferred property type for HNIs as of 58 deals, 53 were for apartments and the remaining five for bungalows. At least 79% of the total deals were concluded by businessmen, and 16% by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5%.
Anuj Puri, chairman, Anarock Group, said, “A total of 58 ultra-luxury homes have been sold across the top 7 cities in 2023 to date, for a collective sales value of approx. Rs 4,063 Cr. In contrast, the whole of 2022 saw a total of 13 ultra-luxury homes sold in these cities for a total sales value of approx. Rs 1,170 Cr. In terms of ultra-luxury property sales, 2023 has already made Indian real estate history even before it is over.”
Puri added, “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 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. Not surprisingly, leading Grade A developers have also been scaling up their new supply in the ultra-luxury category. Among wealthy Indians, there is a very distinct FOMO aspect to securing the most desirable options before someone else does.”
Ultra-Luxury Homes – A 2022 Retrospective
Clearly, the Covid-19 pandemic unleashed a demand storm for the luxury and ultra-luxury homes segments. If we consider the collective data of 2022 and 2023 till date, 71 ultra-luxury residential deals worth approx. Rs 5,233 Cr were closed in the top 7 cities.
Of the 13 deals worth approx. Rs 1,170 Cr closed in 2022, at least 10 deals were for apartments and the remaining 3 for bungalows. Mumbai accounts for 11 deals and the remaining two were closed in Delhi-NCR. Interestingly, none of the remaining 5 top cities saw such large ticket value deals in 2022.
Of the 13 ultra-luxury homes sold in 2022, at least 9 deals were for units priced between INR 100 – 150 Cr, all in Mumbai City.
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