A member of the Parle Products’ promoter family, Ambika Chauhan Aibara, recently bought two sea-facing luxury apartments in South Mumbai for over ₹47 crore. The two flats are located in a luxury real estate project K Raheja Modern Vivarea in Worli.
Both the flats located on the 24th and 25th floors were bought for ₹23.65 crore each, documents shared by IndexTap showed. The deal was registered on December 21, 2023.
Eight members of the Halan family, investors in stocks and other asset classes, had also purchased four sea-facing twin apartments in the same project for ₹104 crore. The apartments, which cumulatively span 16,000 sq ft, are located on floors 23 to 26 in Tower 2 in the Raheja Modern Vivarea project, which is under construction in the Modern Textile Mill compound, according to documents accessed and shared by realty portal IndexTap.com.
Fashion designer Vratika Gupta, the founder of luxury home decor company Maison SIA, had also recently bought a penthouse in Mumbai’s ‘Three Sixty West’ skyscraper for over ₹ 116.42 crore. She paid ₹5.82 crore in stamp duty.
What’s driving demand for luxury real estate?
Demand for luxury and ultra luxury homes among wealthy Indians has gone up and this, say real estate experts, is primarily on account of few launches in the luxury housing segment and the fear of missing out (FOMO) on the most desirable properties in town.
Multi-billionaires that comprise industrialists, Bollywood stars, start-up founders continue to purchase spacious sea-facing apartments in the more than ₹1.4 lakh per square foot plus range even as supply for such luxury units continue to be limited. It is the paucity of housing supply in this category that dictates the high price.
“Indians are getting richer every year and they are not shying away from flaunting their wealth. High-end homes and high end cars are the most sought after assets to show off one’s wealth. Also, the equities market has seen unprecedented gains in the last three years (post COVID-19) and high networth individuals are looking at profiting from equities and diversifying into real estate. We will see this trend continue as South Bombay (SOBO) shall be back in action for housing and retail with completion of Atal Setu and near completion of the coastal road,” said Abhishek Kiran Gupta, CEO and co-founder, CRE Matrix and IndexTap.com
As many as 71% rich Indians want to invest in real estate in the next 12-24 months, indicating that there is significant confidence in the property market. Capital appreciation has overtaken lifestyle upgrade as the primary motivation for real estate investment, signaling the return of investors to the market, the annual Luxury Outlook Survey 2024 conducted by India Sotheby’s International Realty (ISIR) said recently.
Capital appreciation will be the key motivation for 44% of wealthy people to buy luxury properties over the next 24 months and this signals a return of investors to the market. Last year, 35% were keen to buy property to upgrade their lifestyle and 20% for income generation, according to the survey.
“Our survey findings indicate a renewed and heightened interest among investors who now view real estate as a compelling avenue for long-term wealth creation. The key driver is capital appreciation. Expectations have changed,” said Amit Goyal, Managing Director, India Sotheby’s International Realty, adding the increasing economic momentum is reflected in record-breaking housing sales numbers in Indian real estate in 2023 and an all-time high stock market.
The survey also pointed out that 83% of rich Indians own multiple luxury properties. Besides primary residences, rich Indians own a variety of real estate assets. As many as 34% own commercial real estate, 25% holiday homes, 21% agricultural land, and 20% farmhouses. As many as 35% home buyers wish to buy property in Goa. Desire to invest in overseas property remained stable at 12 per cent, with Dubai, UAE, and the US maintaining their positions as top choices.
Less supply chasing high demand for luxury properties
There is less supply chasing high demand for luxury properties. Beyond being a symbol of status, these residences offer more than just space – they embody a lifestyle, shared with like-minded people.
“The demand for these homes is driven by a desire for superior amenities, a healthy lifestyle, spacious living areas, distinctive designs and a prestigious address,” said Ramesh Ranganathan| CEO, K Raheja Corp Homes.