Has Delhi-NCR Surpassed Mumbai in the Ultra-Luxury Residential Market in 2024?
In 2024, ultra-luxury real estate deals have been making headlines in India, showing a shift in where the country’s wealthy are investing. High-net-worth individuals (HNIs) are increasingly interested in homes worth ₹100 crore or more, especially in Delhi-NCR and Mumbai. The year saw some big-ticket transactions, such as a ₹190 crore penthouse in Gurugram, a ₹130 crore bungalow in Delhi, and ₹198 crore spent on apartments in Mumbai.
Rising Demand for Expensive Homes
One key reason for this increase in luxury real estate deals is the growing number of wealthy individuals and non-resident Indians (NRIs) looking for more space and better amenities. In fact, a report by HSBC shows that 61% of India’s wealthy business owners invest in real estate for personal use, which is higher than the global average of 51%.
In Gurugram, a luxury penthouse at DLF’s Camellias was sold for ₹190 crore. This was the highest-priced apartment deal in India, surpassing even the previous record of ₹114 crore for a similar property at The Camellias. In New Delhi, Anurang Jain, the managing director of Endurance Technologies, bought a corner bungalow for ₹130 crore, and another bungalow was sold for almost ₹100 crore in the Sunder Nagar area.
Big Deals in Mumbai
Mumbai, long known for its high-end real estate market, continued to see massive deals in 2024.
1. GreatWhite Global Private Limited's Purchase: GreatWhite Global, an electrical accessories manufacturer, bought two apartments in Mumbai’s luxury Oberoi Three Sixty West project for ₹225 crore. These apartments cover a total area of 8,041 square feet.
2. Shreegopal Kabra's Deal: Shreegopal Kabra, the promoter of RR Kabel Ltd, along with his family members, purchased two apartments for ₹198 crore in the same Oberoi Three Sixty West project. The two apartments, with a total area of 13,809 square feet, are located on the 62nd floor and were sold for over ₹1.43 lakh per square foot.
Why Are the Wealthy Investing in Expensive Homes?
There are a few reasons why so many ultra-wealthy individuals are choosing to invest in such expensive properties:
1. Luxurious Amenities: Many of these high-end homes come with top-notch amenities like private clubs, pools, and spas. The rich are drawn to these features because they complement their luxurious lifestyles.
2. Status and Networking: Living in these exclusive communities offers the chance to mingle with other successful and influential people. These homes become places where deals are made, whether in the clubhouse or while getting a manicure.
3. Long-Term Investment: For India’s Ultra High Net Worth Individuals (UHNIs), buying luxury real estate is not just about a stylish home; it’s also about securing their wealth for future generations. Real estate is seen as a stable investment that can protect against inflation.
Expert Insights on the Luxury Market
A recent report by CBRE explained that the demand for luxury homes is being fueled by the desire for larger living spaces and better amenities. This trend is particularly evident among wealthy buyers, including NRIs, who are looking for residences that match their high-status lifestyle.
Amit Goyal, Managing Director of India Sotheby’s Realty, pointed out that UHNIs in India view luxury real estate as a way to create multi-generational wealth and secure their legacy. He also mentioned that these buyers understand the value of real estate as a stable investment that provides protection against inflation.
Another expert, Abhishek Gupta from IndexTap, highlighted that the rise of luxury real estate in Delhi-NCR, particularly in Gurugram, is a sign that this market is catching up to Mumbai’s. He mentioned that while Mumbai is still the leader, the prices of luxury properties in Gurugram are now at similar levels to Mumbai’s. In fact, new luxury apartment prices in Gurugram have touched ₹35,000 per square foot, a benchmark that was once exclusive to Mumbai.
Has Delhi-NCR Caught Up with Mumbai?
Traditionally, Mumbai has been the hub for luxury real estate in India. However, in recent years, the Delhi-NCR market, particularly in Gurugram, has been growing rapidly. New luxury projects are being launched, offering similar amenities and features to those in Mumbai.
Experts say that while Mumbai still leads in the number of luxury sales, Delhi-NCR is quickly catching up. The prices of high-end properties in Gurugram are now almost on par with Mumbai’s. In fact, the average price of new luxury apartments in Gurugram has reached ₹35,000 per square foot, the same as in Mumbai.
The Difference Between Delhi and Gurugram
While Gurugram’s luxury homes are becoming more popular, there is still a big difference between the luxury properties in Delhi and those in Gurugram. Properties in Delhi’s prestigious neighborhoods, like Malcha Marg and Golf Links, are rare and highly valued for their privacy. These homes are usually sold as part of succession planning, with original owners deciding to sell only when the price is right.
Samir Jasuja, founder of PropEquity, noted that price appreciation in high-end properties, especially independent bungalows in Delhi’s posh areas, has reached its peak. On the other hand, luxury properties in Gurugram, especially those with full amenities, have seen prices rise significantly, almost five times in some cases.
Experts also say that while properties in Delhi are prized for their rarity and exclusivity, Gurugram offers a more modern alternative with better amenities and a growing number of new luxury homes. This has made it an attractive option for many wealthy buyers.
The ultra-luxury real estate market in India is booming, and in 2024, it’s clear that wealthy buyers are flocking to high-end properties in both Delhi-NCR and Mumbai. With growing demand, luxurious amenities, and the desire for exclusivity, these transactions are setting new records and shaping the future of luxury living in the country. As Delhi-NCR catches up with Mumbai, the luxury real estate market in India shows no signs of slowing down.
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