The luxury housing market in the country is undergoing a transition phase.

New Delhi: Nowadays, there is a lot of buying and selling of very expensive property in India. Leena Gandhi Tewari, chairperson of the pharmaceutical company USV Limited, has purchased two duplex flats in Mumbai’s Worli area for 635 crore rupees. The total area of both flats is 22,572 square feet. The cost per square foot is 2.83 lakh rupees.

In the past few years, many wealthy people in India have invested a lot of money in homes. This has changed the luxury housing market in the country. Apart from Leena Gandhi Tewari, the Kotak family bought an entire building facing the sea in Mumbai for around 628 crore rupees. Radhakishan Damani, the owner of D-Mart, purchased an old bungalow in Malabar Hill for 1000 crore rupees. This shows that India’s wealthy people are not just investing in the stock market or startups, they are now investing heavily in land and property as well and they are not just buying anywhere, but rather in selected areas of the country.

Why are people buying such expensive properties?

There are several reasons. Firstly, people feel that the market for luxury homes in India is doing very well. The demand for good homes is very high, but their supply is low. This is especially true in areas like Lutyens’ Delhi, Malabar Hill and Worli in Mumbai, and Golf Course Road in Gurugram. As a result, prices are skyrocketing. In Gurugram, prices at DLF Camellias have reached Rs. 1.17 lakh per square foot.

There are some unique aspects to these deals. For instance, the Kotak family has purchased an entire building facing the sea in Worli. It is believed that they will redevelop it. These properties are not just for living but also for investment purposes. This opens up the potential for creating luxury apartments or mixed-use projects in the future, which could yield good returns.

Hot spots for luxury homes

According to a report by Knight Frank, Mumbai, Bengaluru, and Delhi are among the 15 cities in the world where luxury home prices are rising the fastest. In this list, Bengaluru is fourth, Mumbai is fifth, and Delhi is fifteenth. The report studied luxury home prices in 45 cities globally. It indicates that India is rapidly advancing in the luxury home market. According to the Knight Frank Wealth Report 2024, the number of ultra-rich individuals in India increased by 6% last year, reaching 85,698. It is expected that by the year 2028, this number will increase to 93,753. These individuals have invested 32% of their wealth in homes, compared to 25% in 2020. This shows that people are now investing more in assets like land and property.