Unveiling the Realm of Ultra-Luxury Properties 2023
As the global economy continues to evolve, the real estate market has seen several trends emerge. One of the most notable is the growing interest in ultra-luxury properties.
Realtors, developers, and investors alike are increasingly betting on this high-end segment, anticipating significant returns. But what’s driving this trend, and is it sustainable?
Ultra-luxury properties, typically priced in the top 1% of the housing market in any given area, are more than just homes.
They are embodiments of opulence, exclusivity, and a lifestyle few can afford. Such properties may come equipped with state-of-the-art amenities, prime locations, historic relevance, or unique architectural design.
With the rise of global billionaires, the demand for properties that suit their lifestyle has surged. These ultra-affluent individuals view real estate not just as homes but also as status symbols and investment assets.
High-net-worth individuals (HNWIs) are increasingly diversifying their investment portfolios. Real estate, especially the ultra-luxury segment, offers both stability and appreciable returns.
Top real estate developers have planned a flurry of ultra-luxury projects for the upcoming months in response to the increased demand for larger homes from high net worth people.
Several of the biggest developers in the nation, including DLF, K Raheja Corp Homes, Prestige Estates, and others, have planned more than a dozen ultra-luxury projects in Mumbai and the NCR, with prices ranging from Rs 15 crore to Rs 50 crore.
For instance, DLF is launching an extremely opulent property in Gurgaon after an eight-year hiatus. Consultants estimate that each property will cost more than Rs 40 crore, while firm officials declined to disclose the pricing ranges. The project is anticipated to begin in the fourth quarter of current fiscal year.
Two ultra-luxury residential complexes are being developed by K Raheja Corp Homes, a company run by billionaire developer Chandru Raheja, in Mumbai’s Juhu neighbourhood, which is home to many Bollywood actors and businessmen. These projects range in price from Rs 15 crore to Rs 30 crore per.
It recently unveiled an opulent property in South Mumbai on a three-acre plot of land.
According to Ramesh Ranganathan, CEO of K Raheja Corp Homes, “the demand for premium developments has remained robust, attracting high net worth individuals and discerning buyers, who have experienced the world’s best living standards and want the same in their home country.”
Prestige Estates, situated in Bengaluru, plans to quadruple the number of high-end launches in FY24.
Prestige Ocean Towers, an ultra-luxury property on Marine Lines with pricing of roughly Rs 20 crore per unit, would be debuting shortly. Additionally, it intends to introduce another ultra-luxury in Worli.
In Kerala’s Kozhikode, it just unveiled the opulent Prestige Ocean Pearl complex. According to Irfan Razack, the company’s chairman and managing director, it has also just unveiled two luxury properties in Hyderabad and is developing a third.
According to a report by India Sotheby’s International Realty and CRE Matrix, residential properties priced above Rs 10 crore in Mumbai’s primary and secondary markets increased 49% in value terms to Rs 11,400 crore from Rs 7,660 crore in the same period in 2018.
Similar to this, the sale of luxury homes increased by 216% in Delhi NCR between January 2023 and March 2023 compared to the first quarter of the calendar year 2022.
Modern luxury homes are being equipped with advanced technology, offering bespoke experiences—from home automation systems to private IMAX theaters and wellness rooms.Areas with political stability and favorable tax regimes are drawing wealthy investors looking for both luxury living and sound investment.
Realtors play a crucial role in this segment. Specialized luxury property agents offer:
- Their connections with HNWIs can drive property sales.
- Understand the unique needs and preferences of the elite clientele.
- Offer insights into emerging trends, locations, and investment potentials.
Economic downturns can influence the purchasing power of potential buyers.With many developers jumping on the ultra-luxury bandwagon, there’s a risk of oversupply, which can dilute the market’s exclusivity and reduce property values.
The younger generation of HNWIs might prioritize different amenities or locations, demanding adaptability from realtors and developers.
The ultra-luxury real estate market offers immense potential. With an increasing number of billionaires globally and the appeal of tangible, exclusive assets, it’s no wonder realtors are placing their bets on this segment.
However, like any high-stakes game, the market’s volatility and potential for oversupply necessitate a well-researched and cautious approach. Only time will tell if these bets pay off in the long run.
