Forbes India's current issue delves into the realm of opulent residences, examining both the developers behind these lavish homes and the architectural innovation that defines them. The magazine seeks to provide insight into what is influencing this upper end of the market.
The concurrent rise of premium residential property and equity valuations, although not always synchronized, signals a robust financial landscape. Within the diverse investment landscape, equities frequently present more lucrative returns compared to other asset categories. Investors are thus empowered to strategically secure profits and subsequently allocate these surpluses into real estate ventures.
Given the rapid ascent of the Sensex, many investors with substantial assets could be persuaded to realize profits. It is worth noting that the Sensex surged from 70,000 to 80,000 in a mere 58 trading sessions, marking the swiftest 10,000-point surge in its history. A judicious approach to deploying these earnings would entail investing in the premium property sector, where a plethora of choices abound, ranging from extravagant apartments and penthouses gracing modern metropolitan towers to secluded villas and holiday residences situated beyond major urban centers.
Fueled by a surge in liquidity, the real estate sector has experienced a revival, particularly within the premium segment. This Forbes India edition provides an in-depth analysis of the developers crafting these luxurious abodes, along with the architectural designs defining these residences.
According to the 2024 World Wealth Report by The Capgemini Research Institute, India is projected to host approximately 3.6 million high-net-worth individuals by 2023. This report highlights that these individuals, possessing a minimum net worth of $1 million (equivalent to Rs 8.3 crore), collectively held an impressive $1,446 billion in wealth during 2023.
Furthermore, Knight Frank's 2024 Wealth Report indicates that in 2023, there existed slightly over 13,200 ultra-high-net-worth individuals (Indians boasting a net worth of at least $30 million, or approximately Rs 250 crore). Attributable mainly to this affluent demographic, DLF, India's foremost developer in terms of valuation, successfully sold Rs 1,500 crore worth of ultra-luxury apartments throughout fiscal year 2024.
Samar Srivastava points out in ‘Homes That Last Generations’ that apartments within structures such as Oberoi Realty’s 360 West in Mumbai can command prices up to Rs 45 crores. The fact that the buyers include billionaire Radhakrishnan Damani, the founder of DMart, and Bollywood celebrity Shahid Kapoor should come as no surprise.
Knight Frank’s Wealth Report places India’s financial hub in eighth position regarding the appreciation of luxury housing values. The city's transformation, marked by modern skyscrapers replacing chawls and slums, complete with features like multipurpose sports courts and reflexology gardens, illustrates the reasons behind this climb.
Consequently, for any esteemed real estate developer, Mumbai is an indispensable component for investment. The Menons, affiliated with the Sobha Group, have ascended to become the third-largest real estate conglomerate in Dubai, and they grace the cover of this Forbes India edition. PNC Menon, the patriarch, believes Sobha has the potential to generate “about Rs 100,000 crore over 10 years” in the United States, which will be the next stop on the journey.
Menon tells Manu Balachandran, the author of the cover story, regarding Mumbai: “We have to show something India has not seen.” Considering operational costs, Mumbai remains the sole Indian city capable of facilitating returns on investment. For further insights into both the Mumbai and US ventures, refer to Balachandran’s “Brick by Brick”.
This exclusive opulent real estate edition offers a wealth of additional content. Mexy Xavier and Pankti Mehta explore the luxurious residences of India’s elite, discerning elements ranging from conventional to extravagant, which frequently reflect the personalities of this fashionable group. Moreover, Benu Joshi Routh investigates the architectural and design advancements revolutionizing the concept of luxury living.