This article is contributed by Mannu Bhazin, Country Head of IQI India
India’s ultra-luxury real estate segment is undergoing a golden age—an era marked by discerning buyers, record-breaking sales, and a shift in the very definition of “home.”
With wealth creation on the rise, especially among high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs), there’s a distinct appetite for elevated living that blends legacy, lifestyle, and long-term capital appreciation. From sea-facing penthouses in Mumbai’s Bandra and Worli to stately golf-course villas in Gurugram and the imperial grandeur of Lutyens’ Delhi, the demand for homes priced upwards of ₹20 crore has never been stronger. These aren’t just properties—they’re statements of identity, generational investments, and, for many, dream homes finally within reach.
The surge is backed by multiple tailwinds. Rising disposable incomes, global exposure to refined living standards, and an expanding base of first-generation wealth creators have made ultra-luxury homes both a personal aspiration and a financial strategy.
These homes offer a rare trifecta: unmatched lifestyle perks, the ability to preserve and grow capital, and the status of owning something truly scarce in an increasingly crowded world.
Prime city zones with low density, lush green buffers, and seamless access to business districts are now gold mines of generational wealth, often appreciating faster than any other asset class in the country and are driven by scarcity. The numbers speak volumes.
Premium assets in India’s top metros have historically yielded annualised returns in the range of 9–14%, with some ultra-exclusive properties—those with a story, a view, or a rare provenance—tapping into 18–20% territory.
This scarcity premium, driven by limited supply and ever-increasing aspirational demand, is what makes India’s luxury real estate an outlier in terms of value retention and appreciation.
Interestingly, despite relatively modest rental yields—usually 2–3% of the property value—even the country’s most affluent prefer holding these properties primarily for personal use.
For them, the value lies not in recurring income but in lifestyle elevation and wealth preservation. However, when managed professionally—particularly in scenic, leisure-driven destinations—these “trophy homes” can fetch significantly higher yields, sometimes up to 5–7% annually.
Top-tier city properties have historically delivered annualised returns between 9–14%, with truly rare assets commanding premiums and pushing the 18–20% mark.
The luxury housing market (₹4 crore and above) across India’s top seven cities recorded a 28% year-on-year growth in sales during the Jan–Mar quarter alone.
The momentum is powered by evolving urban infrastructure, a renewed focus on wellness and quality of life, and a subtle but notable narrowing in the gap between monthly rents and EMIs.
With the Reserve Bank of India’s recent repo rate cuts, the timing couldn’t be better for aspirational buyers to turn homeowners.
Ultimately, luxury real estate remains the preferred haven for India’s elite—offering stability in turbulent times, diversification beyond volatile equities, and tangible value in a rapidly digitising, often intangible world. Whether as a legacy asset, a weekend escape, or a curated investment, the ultra-luxury home is now less of a rarity—and more of a reality.
