Team Opulnz Abode: 10-09-2024, 05:55: Read Time – 2mins
In 2024, the demand for ultra-luxury homes in India has reached unprecedented heights, with total sales amounting to a staggering Rs 2,443 crore within the first eight months of the year. Despite the soaring prices, the market for homes over Rs 40 crore has remained robust, particularly in Mumbai, Hyderabad, Gurugram, and Bengaluru. This article delves into the key trends, sales data, and market dynamics that have fueled this remarkable growth in the ultra-luxury housing segment.
A Record-Breaking Year for Ultra-Luxury Home Sales
According to recent data from ANAROCK, a leading real estate services company, the ultra-luxury home segment has seen a remarkable surge in sales in 2024. A total of 25 ultra-luxury homes were sold across Mumbai, Hyderabad, Gurugram, and Bengaluru, collectively valued at Rs 2,443 crore. Notably, cities such as Pune, Chennai, and Kolkata did not witness any transactions in this price bracket, highlighting the demand concentration in a few select markets.
Mumbai: The Epicenter of Ultra-Luxury Real Estate
Mumbai has consistently been at the forefront of India’s ultra-luxury real estate market, and 2024 is no exception. The city accounted for 84% of the total ultra-luxury home sales across the top cities, with 21 units sold for a combined value of Rs 2,200 crore. This dominance is a testament to Mumbai’s enduring appeal among High net worth individuals (HNIs) and ultra-HNIs, who continue to invest in trophy homes for personal and investment purposes.
DLF Camellias 2:
Price Appreciation in Mumbai’s Ultra-Luxury Segment
The average ticket price for homes priced above Rs 40 crore in Mumbai has witnessed a 2% increase in the last eight months, rising from Rs 1,00,208 per square foot in 2023 to Rs 1,02,458 per square foot by August 2024. Even more striking is the price appreciation in the ultra-luxury homes priced over Rs 100 crore, which have seen a 14% jump—from Rs 1,24,697 per square foot at the end of 2023 to Rs 1,41,904 per square foot in 2024. This double-digit growth underscores the relentless demand for high-end properties in Mumbai.
Godrej Sector 43 Gurgaon:
Hyderabad and Gurugram: Emerging Hubs for Ultra-Luxury Homes
While Mumbai remains the dominant market, Hyderabad and Gurugram have also emerged as significant players in the ultra-luxury segment. Hyderabad’s Jubilee Hills witnessed two ultra-luxury home deals worth Rs 80 crore. At the same time, Gurugram saw a single transaction worth Rs 95 crore. These cities are increasingly attracting affluent buyers seeking exclusive properties in prime locations.
Bengaluru: A Growing Contender
Bengaluru, often regarded as the tech capital of India, closed one ultra-luxury deal worth Rs 67.5 crore in 2024. While the city’s ultra-luxury market is not as large as Mumbai’s, it is steadily growing, driven by the rising number of wealthy individuals in the tech industry and related sectors.
Market Dynamics: Factors Driving Demand for Ultra-Luxury Homes
Several factors have contributed to the surge in ultra-luxury home sales in 2024, including:
- Post-Pandemic Demand Surge: The demand for luxury and ultra-luxury homes has increased since the pandemic as affluent buyers seek spacious and well-appointed homes that offer comfort and exclusivity.
- High Investor Confidence: Ultra-luxury dwellings have become a preferred investment option for HNIs, given their potential for significant capital appreciation and their status as a hedge against inflation.
- Developer Initiatives: Leading developers have scaled up the supply of ultra-luxury homes, launching new projects to cater to the growing demand from wealthy buyers.
Profile of Ultra-Luxury Home Buyers
Most ultra-luxury home buyers in 2024 were businessmen, accounting for 80% of the total deals. Senior professionals from various sectors comprised 12%, while Bollywood celebrities and leading legal and medical professionals represented the remaining 8%. Apartments remained the preferred property type, with 20 out of the 25 deals involving high-end apartments, while the remaining five transactions were for bungalows.
Upcoming Ultra Luxury Projects on Golf Course Road
Historical Context: A Comparison with Previous Years
The ultra-luxury home market in India has been on a consistent upward trajectory over the past few years. In 2023, 61 ultra-luxury homes were sold in Mumbai, Hyderabad, and Gurugram, with a combined sales value of Rs 4,456 crore. This year’s sales have already reached more than half of that figure, with four months remaining in 2024, including the festive quarter from October to December, which traditionally sees a spike in property transactions.
2022-2024: Analyzing Sales Trends
When we look at the combined data from 2022, 2023, and the first eight months of 2024, the numbers are even more impressive. Over these three years, 99 ultra-luxury residential deals were closed in the top cities, with a cumulative sales value of approximately Rs 8,069 crore. Mumbai has consistently led the market, with most transactions occurring in the town.
Breakdown of Ultra-Luxury Sales in 2022
In 2022, 13 ultra-luxury deals worth nearly Rs 1,170 crore were closed, with Mumbai accounting for 11 transactions. The remaining two deals took place in Delhi-NCR. Of the 13 homes sold, nine were priced between Rs 100 crore and Rs 150 crore, all located in Mumbai. None of the other top cities saw any large-ticket-value deals in that year.
Conclusion
The ultra-luxury home market in India is witnessing a historic boom, with sales crossing Rs 2,443 crore in just eight months of 2024. Mumbai continues to dominate this segment, but cities like Hyderabad, Gurugram, and Bengaluru are emerging as significant markets for high-end properties. As we approach the festive quarter, the market is expected to see even more large-ticket transactions, potentially setting new records in the ultra-luxury segment. This sustained demand, coupled with rising prices, underscores the enduring appeal of ultra-luxury homes as both investment assets and symbols of status.
