In 2023, a notable surge in the sale of ultra-luxury properties, priced above ₹40 crore, occurred across seven major Indian cities, totaling 58 transactions and amounting to ₹4,063 crore in sales value. Mumbai dominated this segment with 53 of these high-end properties, as reported by Anarock in November 2023.
This surge marks a staggering 247% increase compared to the previous year, which only saw 13 such sales amounting to ₹1,170 crore. Among the 58 properties sold, 53 were apartments and five were bungalows, a significant contrast to 2022, which saw 10 apartments and three bungalows sold in this category. Notably, areas like Worli and Malabar Hill in Mumbai recorded the highest transactions, while Delhi-NCR contributed two apartments in Gurgaon and two bungalows in New Delhi to the ultra-luxe segment.
Mumbai witnessed three deals above ₹200 crore, including penthouses purchased by industrialists JP Taparia, Niraj Bajaj, and Asha Mukul Agarwal, Director of Param Capital. Additionally, seven transactions fell within the ₹100- ₹200 crore price range in the city. Delhi-NCR also saw two homes sold for over ₹100 crore each.
Business tycoons dominated these transactions, accounting for 79%, followed by senior professionals at 16%, while politicians and Bollywood celebrities made up a minor 5% of the buyers. Notably, super luxury apartments were preferred over bungalows by high-net-worth individuals.
The surge in ultra-luxury investments can be linked to the capping of capital gains benefits at ₹10 crore, prompting ultra-high-net-worth individuals to strategically invest in luxury properties before the policy implementation on April 1.
Anarock Group's Chairman, Anuj Puri, highlighted the increased demand for luxury and ultra-luxury properties since the pandemic. He attributed this surge to high-net-worth individuals and ultra-high-net-worth individuals reshuffling their investment portfolios amidst geopolitical tensions and anticipated stock market volatility.
CEO of India Sotheby’s International Realty, Ashwin Chadha, tied the rise in ultra-luxury investments to India's global economic impact, burgeoning manufacturing, exports, and a thriving start-up ecosystem. He anticipated a continued upward trajectory in demand for such properties.
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