900 Sq Yard Bungalow in Delhi's Upscale Sunder Nagar Sells for Approximately ₹100 Crore, CBRE Facilitates Deal

A high-value real estate deal recently took place in Sunder Nagar, a prime location in Central Delhi. According to market sources, a bungalow spanning around 900 square yards was sold for nearly ₹96 crore. The property was owned by Sunil and Ravi Sachdev and the transaction was facilitated by the real estate firm CBRE. Sunder Nagar bungalows are now among the most sought-after homes in central Delhi. It remains a preferred choice for the country’s top lawyers, judges, bureaucrats and business leaders, according to property brokers.

Luxury Market Dynamics

Sales of luxury properties across India's major cities have increased significantly over the past few years. In Delhi-NCR, particularly South and Central Delhi, there have been several large-scale property transactions. As per a recent CBRE report, sales of luxury homes priced at ₹4 crore and above grew by 38% between January and September 2024 across seven major cities, with Delhi-NCR leading the way.

The most recent major property sale in the Delhi-NCR area was in Gurugram, where a 10,813-square-foot apartment in DLF The Camellias was sold for ₹95 crore in January 2024 to Smiti Agarwal, wife of Hemant Agarwal, CMD of V Bazaar Retail Pvt Ltd.The region recorded 5,855 units sold in this price range, a 72% increase compared to the same period last year. Mumbai followed with 3,820 units sold, marking an 18% growth.

Experts like Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle-East and Africa, CBRE, foresee continued strong demand in the high-end market, with even traditionally mid-range markets like Noida, Bengaluru, Pune and Chennai seeing more interest in luxury properties.

"As the market shifts from bungalows to modern apartments and penthouses, the premiumisation of amenities will be a key differentiator in luxury projects," Magazine added.

Reports from Cushman and Wakefield show that Delhi-NCR leads in offering luxury homes priced around ₹15,000 per square foot, representing 61% of all new residential projects. Data from Anarock indicates that during January-June 2024, nearly 45% of NCR's total housing sales were in the luxury segment, while 24% were in the affordable segment. This is a significant shift from 2019 when luxury homes accounted for just 3% of the market, with the affordable segment at 49%.

Factors Driving the Surge in Luxury Home Demand

The demand for luxury homes in India is rising due to several key factors such as, increasing incomes, lifestyle aspirations, urbanization, and better infrastructure. A significant contributor to this trend is the growing influence of millennials, who now make up 54% of home buyers, according to CoreLogic data.

Urbanization has also elevated luxury home sales in cities like Delhi-NCR, Mumbai, Hyderabad, and Pune. In the first half of 2024, Delhi-NCR alone sold about 3,300 luxury homes, marking a 13.8% increase from the previous year.

Additionally, the demand for luxury homes is being driven by affluent buyers seeking better amenities and spacious living areas, a growing middle class aspiring for luxury living has increased interest in these properties. The influx of NRIs and wealthy domestic investors in the Indian real estate market has further fueled this demand.