by Sarveshaa SB, Chairman & Managing Director, BHADRA Group
India's ultra-luxury housing industry is growing at a rate never seen before, driven by the country's booming economy and a growing class of rich people who want exclusivity and luxury. According to Anarock Research, the category saw a startling 247% year-over-year growth in sales of properties valued over Rs.40 crore in 2023, promising a strong demand that would likely peak in 2024.
India's fast economic growth is fuelling this amazing upswing by producing a large number of ultra-high-net-worth individuals (UHNWIs) with high real estate goals. According to Sotheby's International Realty's Luxury Outlook 2024, 71% of Indian UHNWIs want to make luxury real estate investments in the next two years, marking a significant increase from 59% the year before. This optimism is a reflection of both faith in India's economic prospects and a growing demand for upscale living environments that serve as symbols of an individual's accomplishments and prestige, in addition to providing luxury.
Mumbai, the nation's financial hub, continues to lead this ultra-luxury boom, with significant neighbourhoods such as Malabar Hills seeing sales that exceed forecasts, therefore establishing the city as the hub of India's luxury real estate market. Nevertheless, Mumbai is not the only city with a posh environment. Known as "India's Silicon Valley," Bengaluru is making a name for itself with opulent homes that cater to the upper class of computer workers. These homes combine luxury with green living areas that provide a break from the bustle of the city.
Beyond these cities, the narrative takes place in South India's calm landscapes, where destinations like Goa and Kerala are setting the standard for luxury in terms of peace and harmony with the natural world. Here, luxurious residences stand in sharp contrast to the busy cityscapes, serving as both architectural wonders and havens of peace and quiet, perched within lush vegetation and overlooking serene lakes.
In India, the definition of ultra-luxury living is changing, incorporating a way of life that transcends material surroundings. Modern ultra-luxury homes are technological and wellness hubs that provide residents with individualised living experiences that satisfy all of their wants. These homes are raising the bar for luxury living, from eco-friendly designs that reduce their negative effects on the environment to smart homes outfitted with cutting-edge technology.
Additionally, it is evident that global design trends have an impact on Indian homebuyers, who have a preference for homes that combine native beauty with international aesthetics. This merging of the global and local draws not just foreign players wishing to enter India's luxury real estate market but also native investors, thereby broadening the industry's appeal.
The outlook for India's ultra-luxury real estate sector is remarkably optimistic. Knight Frank's Wealth Report 2023 projects a 58% rise in the number of UHNWIs by 2026, meaning there will be a huge demand for ultra-luxury real estate. This expansion reflects not just the strength of the nation's economy but also the shifting desires of its wealthiest residents in terms of lifestyle.
Recognising this change, developers are rising to the challenge to build homes that are testaments of luxury as well as homes, fusing technology and sustainability to satisfy the exacting requirements of today's UHNWIs. Ultra-luxury housing will become a central theme in India's real estate industry by 2024 and beyond as a result of this dedication to innovation and perfection, ushering in a new age in luxury living.
With India's economy expanding and its population increasing, the ultra-luxury real estate industry is poised to reinterpret what it means to live in luxury. With an emphasis on customised experiences, sustainability, and technology integration, this market is marking a new chapter in the history of the nation's real estate that is both auspicious and exciting. It is not simply selling homes but also creating heritage.
