India’s ultra-rich class betting on luxury properties | Ezine Daddy

Capitalizing on one of the few promising asset classes and with clear ownership titles, India’s wealthy are investing in luxury real estate, continuing a trend that began last year amid the pandemic. Buyers including business families, startup founders and top CEOs have paid anywhere from £50m to a staggering £1,000m for apartments in recent months.

Luxury home sales in Mumbai and Pune in 2021 were the highest in four years and could set a new record in 2022, according to a joint report by India Sotheby’s International Realty and CRE Matrix. According to it, 1,214 luxury residential properties worth £20,255 million were sold in Mumbai in 2021, compared to 598 units worth £9,872 million in 2018.

The list of buyers includes Shekhar Bajaj, the promoter’s chairman

and his family; Rajan Bharti Mittal, Vice Chairman of Bharti Enterprises; Siddharth Jain of Inox; Pooja Dhoot, wife of Anirudh Dhoot of Videocon Group; Shailesh Dalmia and his wife Natasha; Siddharth Shah, Founder of PharmEasy; multimillionaire stockbroker and retail mogul Radhakishan Damani; Ex-HDFC Bank CEO Aditya Puri, wife Anita Puri, and daughter Amrita Puri; promoter Anil Gupta; Tata Sons Chairman N Chandrasekaran and his family; and the founder of Aakash Educational Services, JC Chaudhary.

Real estate advisors say large families selling co-owned bungalows in select locations are boosting the supply of quality property in Delhi and other major cities, top agents said. The properties are predominantly owned either by older people or by several members of the next generation.

Upward trend in demand continues

Most of these properties, particularly those valued at Rs 25 crore, have come on the market after the pandemic. In several cases, the original owner is no longer alive and the next generation sells the jointly inherited property sooner rather than later, said Amit Goyal, CEO of India Sotheby’s International Realty.

“Covid-19 has brought a certain level of uncertainty into people’s lives,” he said. “We are seeing a willingness among families, particularly among the elderly, to formalize the distribution of assets to next of kin during lifetime.”

The houses are mainly located in Mumbai, Goa, Alibaug and posh places in Delhi like Jor Bagh, Sunder Nagar and Golf Links.

Sotheby’s Luxury Outlook Survey says a quarter of high net worth individuals (HNIs) have bought homes during the pandemic. After all, 67% of those surveyed stated that they wanted to buy a residential property in 2022, citing lifestyle upgrades and good investment opportunities as the main reasons.

“We’ve seen a huge surge in demand for bungalows in posh subway colonies or farmhouses in the suburbs from top corporate executives, business executives and start-up founders who have performed exceptionally well with their investment portfolio,” Goyal said. The uptrend in the luxury housing market continued beyond the March quarter into April and May, another indication of the market’s strength, he said.

“Since the pandemic, sophisticated buyers have been basing their purchasing decisions on luxury real estate when previously they would have invested in other asset classes or luxury goods,” said Aakash Ohri, Group Executive Director and Chief Business Officer.

home developer. “Although there has always been an appetite in India, people have preferred other asset classes to invest in, which has changed significantly.”

DLF sold 19 units valued at Rs 580 crore in The Camellias super luxury development in Gurgaon in the December quarter of last year. In the second and third quarters of FY22, DLF sold a total of 53 units at The Camellias for a record Rs 1,617 crore.

“For the ultra-luxury buyer, home is about gathering with like-minded people in a gracious community replete with amenities and material comforts for their entire family to enjoy,” said Ramesh Ranganathan, CEO, K Raheja Corp Homes. “These clients hold key positions in the corporate world, have traveled the world and are socially connected to people living abroad, and seek nothing less than the best.”

The luxury housing market in Mumbai has performed exceptionally well over the past year, said Ashwin Chadha, President of India Sotheby’s International Realty.

“This is pretty much in line with the luxury property sales velocity we’ve seen around the world, including global gateway cities like London, New York and Dubai,” he said. “We believe this is just the beginning of a very positive and bullish housing cycle.”

Mumbai recorded sales of luxury residential property valued at Rs 9,492 cro in the last calendar year. By volume, luxury home sales in Mumbai totaled 1,214 units in 2021, compared to 548 a year earlier.

“In Mumbai, several factors have contributed to strong sales, notably discounts offered by builders and incentives from a stamp duty exemption by the Maharashtra government,” said Chadha.

Pune also witnessed similar trends, with 208 units sold valued at Rs 1,407 crore in 2021 versus 127 units valued at Rs 832 crore in 2017.

“Real estate prices have been more or less flat across all segments and price ranges for the last five to six years,” said Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix. “Well-informed HNI buyers have used this as an opportunity to purchase assets at the right price for wealth creation. We are already seeing prices firming and starting to rise.”

The concept of home ownership has gained traction during the pandemic. Consumers are looking for bigger and better homes from branded developers with a track record of delivering projects on time.

“During the lockdowns, HNIs and ultra-HNIs got a much-needed break to analyze and strengthen their real estate portfolios,” Gupta said.

The sales trend is expected to remain brisk this year as 306 luxury residential units valued at Rs 4,877 crore have already been sold in Mumbai in the March quarter.

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