The Indian real estate sector, which experienced a significant downturn during the COVID-19 pandemic in 2020, has made a remarkable comeback. This resurgence is driven by a surge in demand for ultra-luxury homes, with prices soaring above ₹40 crore. This demand has propelled the real estate market to new heights.

Current Trends in Ultra-Luxury Homes

Increasing Demand

In 2024, the demand for ultra-luxury homes remains high. Mumbai has emerged as the leader in this segment, with projections suggesting that the city could set a record for sales of homes priced over ₹100 crore by the end of the year. Notably, Pune, Chennai, and Kolkata have yet to record a single sale of an ultra-luxury flat among the seven major cities in the real estate market.

Buyer Profile

According to property advisory firm Anarock, 80% of buyers for ultra-luxury homes are industrialists, while 12% are senior professionals from various fields.

Sales Data

City-Wise Breakdown

In the first eight months of 2024, 25 ultra-luxury flats were sold in key cities like Mumbai, Gurugram, Hyderabad, and Bengaluru, totaling a price of ₹2,443 crore. Mumbai leads with 21 of these sales, amounting to approximately ₹2,200 crore. In comparison, Gurugram saw a sale of a flat priced at ₹95 crore, Hyderabad had two flats sold for ₹80 crore each, and Bengaluru had one flat sold for ₹67.5 crore.

High-Value Sales

Of the 25 ultra-luxury homes sold, nine in Mumbai alone had prices exceeding ₹100 crore each, amounting to a total of ₹1,534 crore. In contrast, in 2023, only 10 such homes were sold for a combined total of ₹1,720 crore. With three months remaining in the year, it is anticipated that sales of homes priced above ₹100 crore may reach new records, especially with upcoming festivals.

Price Trends

Over the past eight months, the average price of flats valued over ₹40 crore increased by 2%, while those priced above ₹100 crore saw a 14% rise. This indicates a robust recovery in the demand for ultra-luxury homes post-COVID.

Historical Sales Performance

In 2022, 13 ultra-luxury homes were sold for a total of ₹1,170 crore. This number increased significantly in 2023, with 61 homes sold for ₹4,456 crore. In the first eight months of 2024 alone, 25 ultra-luxury homes were sold. Over the past three years, a total of 99 ultra-luxury homes worth ₹8,069 crore have been sold.

The rapid growth in the real estate sector highlights a shift in buyer preferences towards luxury living. Anarock’s report confirms that post-pandemic, buyers are increasingly willing to invest in high-end properties, reflecting a broader trend of changing attitudes towards home ownership in India.