 "Amid high demand, real estate developers ramp up uber-luxury projects")
Indian real estate firms are diversifying their portfolios to include ultra-luxury projects ranging between Rs 3.5 crore and Rs 45 crore, as they capitalised on the uptick in demand for opulent apartments especially among the new-generation entrepreneurs and C-level executives.
Luxury home sales in India, valued at Rs 4 crore and above, surged by 75 per cent last year, doubling their share of total housing sales, according to CBRE’s report.
In 2023, 12,935 such homes were sold, compared to 7,395 in 2022.
In January, the ‘India Market Monitor Q4 2023’ revealed the luxury segment now holds a 4 per cent share of total sales, up from 2 per cent in 2022.
Additionally, new launches increased by 45 per cent, fuelled by rising demand, signalling a notable uptick in the luxury real estate market.
Bengaluru-based Prestige Estate Projects’ Ocean Towers in Marine Lines offers ultra-luxurious 4-bedroom sea-view residences starting at Rs 23 crore. And in the prime location of Pali Hill, Bandra West, Prestige Daffodils is offering uber luxury homes priced between Rs 26 crore and Rs 45 crore.
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“Considering the excellent response that we received, we are already planning to launch the second tower in Prestige Ocean Towers. We will also be launching another uber luxury development in Worli in this financial year,” said Anand Ramachandran, senior vice president, Business Expansion, Prestige Group.
Ramachandran attributed the trend of uber luxury demand to India’s wealth creation among C-suite executives and first-generation entrepreneurs, post-Covid demand for larger, amenity-rich homes, and buyers seeking luxury real estate as an identity statement, bolstered by top developers’ international-standard offerings.
Concorde Group affirmed that ultra-luxury offerings remain integral to their portfolio, meticulously chosen based on prime locations and land acquisitions.
Basavanagudi and Koramangala in Bengaluru are upcoming destinations, with investments in two CBD properties set to reflect in Q1 FY25.
“Based on our portfolio, uber luxury properties in Bengaluru typically range from Rs 10 crore to Rs 30 crore and above for villas, and Rs 3.5 crore to Rs 15 crore and above for duplexes, reflecting the premium nature of these properties considering their location, size, design, and bespoke amenities,” said Anil RG, managing director, Concorde.
Concorde attributes luxury segment growth to “exclusive specifications and premium location,” propelled by post-Covid demand and rapid wealth creation.
High-net-worth individuals (HNIs) and non-resident Indians (NRIs) are key drivers, comprising 5 per cent of residential sales.
Luxury real estate developer, MAIA Estates, is embarking on a significant expansion across multiple cities, including Bengaluru and Chennai, with a robust pipeline of 5 million sq. ft. Having successfully delivered over a million sq. ft. in Bengaluru, the company is poised to introduce 3.5 million sq. ft. of residential projects and 1.5 million sq. ft. of high-end commercial spaces within the next year.
“Our debut development, Pelican Grove in Jakkur, North Bengaluru, launched in 2018 at a price point of over Rs 8,000 per sq. ft. in a market that typically traded at Rs 5,000 per sq. ft. This has since doubled, with apartments in Pelican Grove now valued at over Rs 16,500 per sq. ft,” said Mayank Ruia, founder and CEO of MAIA Estates.
“Similarly, our flagship project, 27 Summit in Central Bengaluru, launched at Rs 21,000 per sq. ft. in 2021. In less than three years, it has become the most exclusive development in Bengaluru, with apartments being sold at Rs 45,000 per sq. ft and beyond,” added Ruia.
Ganga Realty is embarking on an ambitious project to develop 30 lakh sq. ft. of land in Sector 85, Gurugram, focusing on ultra-luxury residences. Furthermore, they have unveiled the Nandaka project, featuring opulent apartments and penthouses, with an investment exceeding Rs 1,000 crore.
“Currently, our focus is to expand our luxury offerings in Gurugram real estate space,” said Vikas Garg, joint managing director, Ganga Realty.
Mumbai-based Runwal emphasizes its commitment to enhancing its ultra-luxury portfolio throughout the Mumbai Metropolitan Region (MMR) with a range of upscale projects. Among the highly anticipated releases are the prestigious Worli and Walkeshwar developments.
“In FY24, we significantly invested in expanding our high-end residential portfolio in MMR region, the investments stood at a range of over Rs 1,000 crore while we target to grow our investment by another 30 per cent in FY25,” said Sandeep Runwal, managing director, Runwal.
Chennai-based Casagrand is poised to develop more than 600 ultra-luxury units across prime locations in the city, including Ashok Nagar, Perungudi, Vandalur-Kelambakkam, and Adyar.
“In Q4 FY24, we have invested between Rs 150 to 180 crore in developing uber luxury properties. In Q1 FY25, we are set to invest an additional Rs 200 to 250 crore,” said Vimesh P, senior vice president of Marketing, Casagrand.