Surge In Ultra-Luxury Home Sales Defies Trends: Mumbai Leads With 247% Growth In 2023
Mumbai, in particular, has emerged as the front-runner, boasting 53 of these exclusive properties. Key luxury hubs such as Worli and Malabar Hill in Mumbai witnessed the highest number of transactions, while Delhi-NCR contributed with two apartments in Gurgaon and two bungalows in New Delhi in the ultra-luxe category
The ultra-luxury real estate market in India has witnessed a remarkable surge, with a total of 58 opulent homes priced above Rs 40 crore being sold across seven major cities in 2023. Mumbai, in particular, has emerged as the front-runner, boasting 53 of these exclusive properties, according to a research report by Anarock released on Thursday.
Striking Growth and Market Dynamics
The figures reveal an astonishing 247 per cent surge compared to the preceding year of 2022, which saw only 13 ultra-luxury sales amounting to Rs 1,170 crore. The total sales value for the ultra-luxury segment in 2023 stands at an impressive Rs 4,063 crore. Of the 58 properties sold this year, 53 were apartments, while five were lavish bungalows, showcasing a notable shift from the 10 apartments and three bungalows sold in 2022.
Key luxury hubs such as Worli and Malabar Hill in Mumbai witnessed the highest number of transactions, while Delhi-NCR contributed with two apartments in Gurgaon and two bungalows in New Delhi in the ultra-luxe category.
Mumbai witnessed at least three deals exceeding Rs 200 crore, with industrialists JP Taparia, Niraj Bajaj, and Param Capital director Asha Mukul Agarwal securing opulent penthouses. Additionally, seven transactions fell within the Rs 100-Rs 200 crore price bracket. In Delhi-NCR, two ultra-luxury homes were sold for more than Rs 100 crore each, according to the report.
Analysis of buyer profiles indicates that a significant 79 per cent of ultra-luxury transactions were concluded by business tycoons, followed by 16 per cent by senior professionals. Politicians and Bollywood celebrities constituted a minor 5 per cent, emphasising a preference for super luxury apartments over bungalows among high-net-worth individuals.
Factors Driving the Surge
The unprecedented surge in ultra-luxury property investments is attributed to the capping of capital gains benefits at Rs 10 crore. Ultra-high-net-worth individuals strategically entered the market before the implementation of the cap on April 1, making strategic investments in these exclusive properties.
Anuj Puri, Chairman of Anarock Group, has been quoted saying, "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."