The ultra-luxury real estate market in India has experienced a robust surge in sales through the first eight months of 2024, with a total of INR 2,443 crore in transactions. This growth reflects the continuing demand for high-end properties despite rising prices.
Strong Performance in Top Cities
Across major Indian cities, 25 ultra-luxury homes, priced above INR 40 crore each, have been sold so far this year. These transactions include 20 high-end apartments and 5 independent bungalows. Mumbai has emerged as the dominant market, accounting for 21 of these sales, valued at approximately INR 2,200 crore, or 84% of the total.
- Mumbai: The financial capital remains the top destination for ultra-luxury properties, with deals predominantly in South Central Mumbai and the upscale neighborhoods of Bandra and Juhu. Notably, nine of these deals involved homes priced over INR 100 crore each.
- Hyderabad: Saw two ultra-luxury transactions amounting to INR 80 crore.
- Gurugram: Recorded one sale of an ultra-luxury home worth INR 95 crore.
- Bengaluru: Closed one deal for a home priced at INR 67.5 crore.
Price Trends and Market Dynamics
The average price of homes in the INR 40 crore and above category has increased by 2% over the past eight months. Homes priced above INR 100 crore have seen a substantial 14% rise in average prices. In Mumbai, the price per square foot for properties in this bracket has climbed to INR 1,02,458, up from INR 1,00,208 in 2023. For homes exceeding INR 100 crore, the price per square foot has jumped from INR 1,24,697 at the end of 2023 to INR 1,41,904 in 2024.
Yearly Comparison and Future Outlook
In 2023, the ultra-luxury segment recorded 61 transactions worth approximately INR 4,456 crore. With four months remaining in 2024 and the festive season approaching, industry experts anticipate further high-value deals.
Comment from Anuj Puri
Anuj Puri, Chairman of ANAROCK Group, commented on the market dynamics: “The whole of 2023 saw about 61 deals with a cumulative sales value of approximately INR 4,456 crore in Mumbai, Hyderabad, and Gurugram. With four months remaining in 2024 and the festive quarter from October to December ongoing, we are likely to see more such large ticket-size residential deals happening before the year is through. The data indicates that despite rising prices, the demand for ultra-luxury homes remains strong, driven by high-net-worth individuals seeking premium investments.”
City-wise Performance and Investment Preferences
The data highlights Mumbai’s unyielding dominance in the ultra-luxury market, attracting high-net-worth individuals (HNWIs) and ultra-HNWIs. In comparison, Hyderabad, Gurugram, and Bengaluru contribute smaller shares to the market. Of the 25 deals closed in 2024, 20 were high-rise apartments and five were independent bungalows. Notably, 80% of the deals were made by businessmen, with senior professionals and celebrities accounting for the remainder.
Historical Context and Demand Patterns
Over the past three years, the demand for ultra-luxury homes has surged. Between 2022 and 2024 (up to August), more than 99 deals worth approximately INR 8,069 crore have been recorded in top cities. In 2022, 13 ultra-luxury homes were sold for a total of INR 1,170 crore, with Mumbai accounting for 11 of these transactions.
Also Read: MHADA Receives Over 50,000 Applications for 2030 Homes in Mumbai Lottery; Deadline Extended
Conclusion
The ultra-luxury real estate market continues to thrive, driven by strong demand and rising property values. Mumbai’s leadership in this segment underscores its status as the premier destination for high-end real estate investments. As the year progresses, further developments and transactions are expected to shape the landscape of ultra-luxury residential properties in India.