Ultra luxury homes see 247% Y-O-Y sales value surge in 2023

Ultra-luxury homes that are priced below Rs 40 crore witness an unprecedented bull-run in 2023, showed an Anarock report. As per the report, so far this year has seen a staggering 247% yearly surge in terms of total sales value compared to 2022

"A total of 58 ultra-luxury homes have been sold across the top 7 cities in 2023 to date, for a collective sales value of approx. INR 4,063 Cr. In contrast, the whole of 2022 saw a total of 13 ultra-luxury homes sold in these cities for a total sales value of approx. INR 1,170 Cr. In terms of ultra-luxury property sales, 2023 has already made Indian real estate history even before it is over”, Anuj Puri, Anarock Group Chairman said.

Demand for ultra-luxury homes

As per the data released, in 2022 only 13 ultra luxury homes priced below Rs 40 crore was sold. However in 2023, 58 such homes are bought.

The 13 homes were sold for a total sales value of approximately Rs 1,170 crore in 2022. In contrast, in 2023, the 58 ultra-luxury homes that were sold across the top 7 cities recorded a total sales value of approximately Rs 4,063 crore.

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Out of the 58 homes, 53 were sold in Mumbai alone comprising 91% share of the total deals. Meanwhile Delhi-NCR recorded 4 deals with 2 ultra-luxury homes in Gurgaon and 2 bunglows in Delhi. One unit was sold in Hyderabad.

Puri mentioned that the demand for both luxury and ultra-luxury properties has surged since the pandemic. The High Net-worth Individuals (HNIs) and Ultra-HNIs are buying such homes for investment and personal use.

He further adds that this comes as these individuals are looking to reshuffle their investment portfolio amid the anticipated volatality in the stock market.

“Demand for both luxury and ultra-luxury properties has surged since the pandemic, with HNIs and ultra-HNIs buying such homes for investment, personal use, or both. The upsurge in demand for ultra-luxury homes can also be traced to the reshuffling of HNI investment portfolios amid the anticipated volatility in the stock market due to the existing geopolitical tensions", Anuj Puri said.

The Anarock report also mentioned that Apartments remained the preferred property type for HNIs as of 58 deals, 53 were for apartments and the remaining for bunglows. At least 79% of the total deals were concluded by businessmen, and 16% by senior professionals from across various sectors. Politicians and Bollywood celebrities accounted for the remaining 5%.