The Indian Elites Acquire Luxury Properties

The top ultra-rich top-tier personalities have instinctively rushed to redesign their portfolio of luxury real estate. Being one of the most influential asset classes, real estate has caught massive fund inflow parallel to the bullish trend after the Covid 19 pandemic. Major investors parked their capital in luxury properties anticipating an excellent green streak in the upcoming years.

Meet The Buyers

This herd of ultra-luxury buyers are the pinnacle icons, including startup founders, successful business owners, top corporate players like CEOs and business families. The sale numbers from these buyers range anywhere from ₹50 crores to an overwhelming ₹1,000 crore. Most of these purchases include residential properties.

The list of these purchases is long and heavy. It consists of the promoter chairman of Bajaj Electricals, Shekhar Bajaj, along with his family. Next is Ranjan Bharti Mittal – vice-chairman of Bharti Enterprises. Inox’s Siddharth Jain, followed by Pooja Dhoot, wife of Anirudh Dhoot from the Videocon Group, and Sailesh Dalmia with his wife, Natasha. Founder of PharmEasy Siddharth Shah. A stockbroker and millionaire, Radhakishan Damani.

Additionally, Anita Puri and Amrita Puri, wife and daughter, respectively, of ex HDFC Bank managing director Aditya Puri. There is KEI industry promoter Anil Gupta with N Chandrasekaran and family. He is the chairman of Tata Sons. And finally, there is JC Chaudhary, founder of Aakash Educational Services.

The real estate market moved across the country. However, two cities are highlighted for maximum business with attractive figures. Mumbai and Pune have crossed their four years high in 2021. CRE Matrix and Sotheby’s International Realty report anticipate 2022 to set a new record exceeding the numbers from 2021. As per the report, Mumbai sold 1,214 residential properties making an invoice of ₹20,255 crores in 2021. These properties include luxurious 4 BHK flats at elite locations like South Mumbai’s Worli. Similarly, Pune sold an inventory of 598 units worth ₹9,872 crores in 2018.

About peer locations like the national capital and other metro cities, the supply of such high-end properties is created as large families with joint ownership of high-value bungalows look ahead for an exit opportunity. These owners include the elder members or the next generation.

The Consistent Flow Of High Demand

“Covid-19 has brought a fair bit of uncertainty into people’s lives, we see a keenness amongst families, especially the elderly, to formalize the distribution of assets to the next of kin, in their lifetime.”

– Amit Goyal, CEO of India Sotheby’s International Realty.

After the pandemic, the properties that entered the market were specifically valued at ₹25 crores. Mumbai, posh Delhi (Golf Links, Jor Bugh, and Sunder Nagar), Alibaug, and Goa are the cities where most of these properties are located. The owners are mostly the next generation who inherited the property as the former owner passed away and wished to sell it eventually.

Sotheby’s luxury outlook survey clearly describes how one-fourth of high net worth individuals (HNIs) have bought property during the pandemic leveraging the price movement. 67% of the surveyed individuals agreed that they were curious about purchasing a residential property in 2022. Most of the common reasons for this were lifestyle upgrades and great investment opportunities.

“We have seen a big upsurge in demand for bungalows in posh colonies of metros or farmhouses in the suburbs from top corporate executives, businessmen, and startup founders who have done exceedingly well on their equity ownership portfolio.”

– Amit Goyal, CEO of India Sotheby’s International Realty.

The luxury housing market’s upward trend has continued into April and May, crossing the quarter of March testifying to the caliber of the market in the future, he added.

The Big Numbers

“Since the pandemic, discerning buyers have directed their purchase decisions towards luxury homes, whereas earlier they would invest in other asset classes or luxury goods. In India, while there has always been an appetite, people have preferred other asset classes to invest in, which has significantly changed.”

Aakash Ohri, group executive director and chief business officer, DLF Home Developers.

DLF sold 19 properties worth ₹580 crores in the December quarter last year in the super-luxury The Camellias project in Gurgaon. In the second and third quarters of FY22, DLF sold 53 units in The Camellias for a record ₹1,617 crore.
December’s quarter last year brought a sale of ₹580 crores through the super-luxury Camellias project in Gurgaon. Furthermore, the second and third quarters of FY22 got a deal of 53 units in The Camellias for a record ₹1,617 crores for DLF.

“For the ultra-luxury buyer, their home is about congregating with like-minded people in an amiable community, one that is replete with amenities and material comforts that their entire family can enjoy. These clients hold key positions in the corporate world, are globally travelled and socially connected with people living abroad, and seek nothing less than the best.”

– Ramesh Ranganathan, CEO, K Raheja Corp Homes.

Last year, Mumbai witnessed a sale of luxury properties worth ₹9,492 crores with 1,214 units in 2021, compared with 548 in the previous year. Similarly, Pune sold 208 units worth ₹1,407 crores in 2021 for 127 units worth ₹ 832 crores in 2017.

During the pandemic, the concept of homeownership gained traction. Consumers want larger and better homes from reputable developers who have a track record of completing projects on time.