 "India's 1st luxury-focused Rs 1,000 cr real estate investment fund is here")
ASK Property Fund and India Sotheby's International Realty on Tuesday launched a Rs 1,000-crore fund for investments in luxury housing projects across major cities.
The fund will invest in residential projects in India in the luxury segment. The Fund’s objective is to generate superior risk-adjusted returns for investors by investing in high-end residential projects in top cities, holiday homes, in vibrant and sought-after second-home micro-markets, including religious destinations.
The size of this fund will be Rs 1,000 crore equity, with a green shoe option of Rs 500 crore. The fund plans to invest in early-stage luxury residential projects across Mumbai, Bengaluru, and the Delhi-NCR region.
ASK Curated Luxury Assets Fund is registered with Sebi as a Category II Alternative Investment Fund under the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”).
The Fund will raise third-party capital from sophisticated institutional and individual investors in accordance with Sebi guidelines. This includes family offices, high net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, multi-lateral institutions, and other sophisticated and institutional investors.
The fund will also support premium second-home developments, including villas and low-rise projects, in coastal cities, hill stations, and religious destinations. The focus is on projects with home prices starting at Rs 8 crore.
"We are confident that India's robust economic fundamentals and the increasing number of wealthy, will continue to drive growth in the country's luxury residential real estate market. We are excited to collaborate with India SIR, leveraging its strong brand presence and deep expertise in the luxury real estate segment, to launch India’s first luxury residential opportunity-focused fund. This strategic collaboration creates a win-win for all stakeholders, including landowners and buyers." said Amit Bhagat, Co-founder, CEO & Managing Director at ASK Property Fund.
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ASK Property Fund and India Sotheby's International Realty, as co-sponsors, will make an equal capital commitment to luxury real estate fund.
So far, ASK Property Fund has raised around Rs 7,200 crore since 2009 and investors include family offices, ultra high net-worth individuals (UHNIs), high net-worth individuals (HNIs) and institutions.
"ASK Property Fund comes with an outstanding track record and profound investment insights from managing some of the top-performing Real Estate Funds in the country. We are confident about the unique value proposition of this strategic collaboration. Together, we offer exceptional and complementary expertise to this pioneering investment platform," said Amit Goyal, Managing Director, India SIR.
ASK Property Fund is the alternate asset investment arm of the ASK Asset & Wealth Management Group, set up to manage and advise real estate dedicated funds. The focus is on private equity investments in self-liquidating residential and commercial segments.
India’s residential real estate market is witnessing a marked shift towards premiumization, with both homebuyers and realty developers increasingly focusing on properties catering to the growing number of higher-income urban demographic groups, driven by the steady growth in the economy. A notable change in buyer sentiment has led to increased interest in larger homes with enhanced amenities. The higher ticket segments now account for a larger proportion of overall launches and sales.
Sales of apartments priced Rs 2-Rs 5 crore grew 400% between 2019 and 2024, with 82% increase in 2024 alone. Homes priced above Rs 20 crore saw a 270% rise since 2019, while the Rs 1–10 crore category registered the most notable growth, with a 46% on-year increase and a nearly 500% rise since 2019, showed data from Knight Frank India.
The Rs 20-50 crore segment recorded the highest growth rate of 84%, with sales rising from 133 units in 2023 to 245 units in 2024, noted Knight Frank India. Mumbai accounted for a staggering 78% of the sales in this segment, underscoring its status as a leading market for luxury properties.
The ultra-premium segment, priced above Rs 50 crore, saw sales of 150 units in 2024, with Mumbai leading at 67% of these sales. This category remains a niche market, appealing to a small segment of affluent buyers.