In the first eight months of 2024, the ultra-luxury real estate market in India has witnessed remarkable activity, with Mumbai emerging as the dominant player. According to data from Anarock, the total sales of ultra-luxury homes—defined as properties priced above ₹40 crore—across four major cities amounted to approximately ₹2,443 crore. This significant figure highlights a robust market segment and growing demand for high-end residential properties.
Mumbai’s Dominance in Ultra-Luxury Home Sales
Mumbai stands out with a commanding share of this market segment. Of the 25 ultra-luxury homes sold across Mumbai, Hyderabad, Gurugram, and Bengaluru, Mumbai alone accounted for 21 transactions, collectively worth ₹2,200 crore. This impressive figure represents an overwhelming 84% of the total sales in the ultra-luxury segment for the year so far. The city’s allure as India’s financial capital continues to attract high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) seeking prestigious and luxurious residences.
In Mumbai, the sales activity was concentrated in prime localities, with seven transactions occurring in South Central Mumbai and two in Bandra and Juhu. Notably, nine of these transactions involved properties priced over ₹100 crore each, underscoring the city’s status as the epicenter of the ultra-luxury real estate market.
Hyderabad’s Notable Deals
Hyderabad also made its mark in the ultra-luxury sector with two significant transactions in Jubilee Hills, a prominent upscale neighborhood. The combined value of these deals was approximately ₹80 crore. Hyderabad’s real estate market, particularly in affluent areas like Jubilee Hills, is gaining traction among wealthy buyers seeking luxurious homes.
Gurugram’s Contribution
In the National Capital Region (NCR), Gurugram recorded a notable transaction involving an ultra-luxury property sold for ₹95 crore. This deal underscores Gurugram’s growing reputation as a desirable location for high-end residential investments, catering to the region’s burgeoning population of affluent individuals and families.
Bengaluru’s Ultra-Luxury Market
Bengaluru, while not as dominant as Mumbai, contributed to the market with one ultra-luxury home transaction valued at ₹67.5 crore. This sale reflects the city’s appeal among HNWIs who are increasingly investing in premium properties in its upscale neighborhoods.
Trends in Ultra-Luxury Real Estate
Across the four cities, ultra-luxury apartments were the preferred choice, comprising 20 out of the 25 transactions. These high-rise apartments, known for their luxurious amenities and prime locations, accounted for approximately ₹1,694 crore of the total sales value. The remaining five transactions involved bungalows, which collectively sold for about ₹748.5 crore. This preference for apartments highlights a trend among wealthy buyers who favor high-rise living in prestigious addresses.
The demographic breakdown of buyers reveals that approximately 80% of the deals were concluded by businessmen, reflecting the significant role of entrepreneurs and corporate leaders in this market segment. Senior professionals, including those from legal and medical fields, accounted for 12% of the transactions, while Bollywood celebrities and other high-profile individuals contributed to the remaining 8%.
Rising Prices and Market Dynamics
The ultra-luxury real estate market has also seen a notable increase in property prices. The average price of homes priced above ₹40 crore has risen by 2% over the past eight months, reaching ₹1,02,458 per square foot by August 2024. More strikingly, homes priced above ₹100 crore have experienced a 14% price increase, with average prices climbing to ₹1,41,904 per square foot. This sharp price appreciation indicates a strong and growing demand for trophy homes, even as prices continue to escalate.
Leading Grade A developers have responded to this demand by increasing the supply of ultra-luxury homes. The continuous growth in both transaction volume and property prices reflects the sustained appetite for high-end residences among India’s wealthy elite.
Outlook for the Rest of 2024
As the year advances, the ultra-luxury real estate market is poised to sustain its robust performance. With four months remaining in 2024 and the upcoming festive quarter on the horizon, the sector is expected to witness an influx of high-value transactions. The steady demand for premium properties, coupled with the continuous launch of new ultra-luxury developments, is driving this momentum.
This sustained growth can be attributed to a combination of factors, including the increasing purchasing power of high-net-worth individuals, the appeal of exclusive amenities, and prime locations. Moreover, the festive season traditionally boosts real estate transactions, as buyers look to invest in new properties during this auspicious period. As a result, the ultra-luxury segment is likely to remain a key performer in the real estate market, further cementing its position as a preferred investment option for affluent buyers.