Several developers in Delhi-NCR and Mumbai have recently launched ultra-luxurious projects to cater to the needs of high net worth individuals. Real estate experts say the demand for luxury and ultra-luxury properties priced above ₹5 crore increased due to fear of missing out on launch of new housing projects as there is less supply to meet high demand. Wealthy investors now prefer to buy large apartments with modern amenities rather than bungalows.

A recent CBRE report noted that the increase in demand for luxury housing was driven by a growing preference among wealthy buyers for upgraded amenities and more spacious living spaces that complement their multi-faceted lifestyles. Additionally, the growing aspirational class has contributed significantly to the increased demand for luxury properties. Additionally, the increase in the number of NRIs and savvy domestic investors in the Indian real estate market has significantly fueled the increased demand for luxury residences, the report said.

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DLF recently pre-launched its 17-acre luxury housing project, The Dahlias, in DLF5, Gurugram costs more than ₹80 million. The company will develop around 420 ultra-luxury apartments in this project. The minimum apartment size is 10,300 square feet.

Noida too is fast losing its image as Gurugram’s poor cousin, so much so that prices of recent luxury housing projects seem to be almost at par with new launches in the millennial city. The city’s premium offerings are popular with people looking to transition from a ‘kothi’ to a ‘condo’ lifestyle, investors, non-resident Indians, not to mention successful entrepreneurs in the industrial city.

The County Group project in sector 115 offers apartments of the range ₹9 crores to ₹13 million. Apartment sizes range from 4,700 square feet to 7,000 square feet. Gaurs Group is also planning to launch an ultra-luxurious project in Noida. The company recently launched a ₹A luxury housing project worth 3,100 crores in Ghaziabad that was sold in just three days.

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The luxury housing segment which includes units priced at ₹4 crore and above saw sales increase by nearly 37.8% year-on-year during January-September 2024 due to strong demand, CBRE South Asia Pvt Ltd said in its report titled India Market Monitor Q3 2024 – Residential.

Total sales of luxury units during the January-September 2024 period were approximately 12,625, compared to approximately 9,160 units during the same period last year.

Read also: Kanodia Group plans to launch three luxury housing projects in Delhi-NCR, aims ₹6 trillion in revenue

Delhi-NCR sees maximum luxury housing sales

In terms of quantum luxury residential unit sales, Delhi-NCR led with sales of around 5,855 units, an increase of 72% YoY, followed by Mumbai with around 3,820 units, registering a growth of 18% year-over-year, the CBRE report noted.

During the July-September 2024 quarter, the luxury housing segment in major cities recorded an 82% year-on-year increase in sales. The quarter saw total sales of approximately 4,360 luxury housing units, compared to approximately 2,390 units during the same quarter last year. During the quarter, cities like Delhi-NCR and Mumbai dominated housing sales, collectively accounting for around 90% of total sales. Additionally, Kolkata saw a 1.6-fold increase in sales of luxury residences, the report said.

Read also: A 900 square meter bungalow in Delhi’s posh Sunder Nagar area sold for around ₹100 million

This trend aligns with the shift in buyer preferences towards premium units launched by leading developers, as evidenced by the substantial market share of Tier I developers. This shift is expected to persist, reflecting the evolving expectations of contemporary home buyers, who are now more demanding and informed when it comes to developer reputation, ability to execute and financial stability, the report said.

Increase in new launches

In total, more than 225,000 homes were sold during this period. Steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune and Bengaluru collectively accounted for 64% of total sales between January and September 2024, according to the CBRE report.

“The Indian luxury real estate market is witnessing significant growth, which is reflected in an increase in sales. We also expect increased demand in the premium and premium segments, with traditional mid-range markets like Noida, Bengaluru, Pune and Chennai increasingly attracted to luxury. As the market shifts from bungalows to modern apartments and penthouses, premiumization of amenities will be a key differentiator in luxury projects,” said Anshuman Magazine, Chairman and Managing Director – India, South East Asia, Middle East and Africa, CBRE.

Another report from Anarock showed that a total of 25 ultra-luxurious homes priced above ₹40 crores were sold in Mumbai, Hyderabad, Gurugram and Bengaluru in the first eight months of 2024 at a collective sale value of around ₹2,443 cores.

Of the 25 ultra-luxury properties sold so far across the biggest cities in 2024, Mumbai alone sold 21 units for a collective value. ₹2,200 crores – a share of 84% of the total transactions in this segment in the largest cities. At least two separate ultra-luxury home offerings are collectively worth ₹80 crore was closed in the Jubilee Hills of Hyderabad. Gurugram in NCR saw an ultra-luxurious house sold for ₹95 crore, while Bengaluru also sealed a deal worth ₹67.5 million.

Of the 25 transactions completed across all cities this year, nine involved large banknotes worth more than ₹100 crore each and a collective sale value of ₹1,534 million. In contrast, the whole of 2023 saw 10 transactions of this size for a collective sale value of ₹1,720 crore, according to the data.

Apartments remain the preferred type of property, 80% of transactions are concluded by businessmen

Apartments remain the preferred property type for HNIs. Out of a total of 25 transactions, 20 concerned apartments and the other five bungalows. Of a total of 25 ultra-luxury homes sold so far in 2024, at least 20 were high-rise apartments worth around ₹1,694 million. The remaining five sales were for bungalows with a cumulative value of approximately ₹748.5 crore, according to Anarock data.

At least 80% of the total deals were done by businessmenand 12% by experienced professionals from various sectors. Bollywood celebrities and leading legal and healthcare professionals accounted for the remaining 8%, the release said.

Mumbai dominates demand for ultra-luxurious homes

Amid the rise in demand for ultra-luxurious trophy homes over the past couple of years, Mumbai tops the list of cities where sales of such properties are maximum, although it is far from the market most expensive residential property in India. Financial capital unfailingly attracts HNIs and ultra-HNIs who buy ultra-luxurious homes for investment, for personal use, or both.

Out of a total of 25 transactions, at least nine transactions in 2024 were worth more than ₹100 million each. All these transactions were made in Mumbai – seven in south central Mumbai and two each in Bandra and Juhu, according to Anarock data.