Surge in Luxury Real Estate Deals as Fiscal Year Closes
India witnessed a significant increase in luxury real estate transactions nationwide as the fiscal year drew to a close. These high-value deals involved properties with prices ranging from ₹10 crore to upwards of ₹100 crore.
Factors Driving the Surge
Real estate advisors have identified several key factors contributing to this trend. Limited availability of luxury properties creates a fear of missing out (FOMO) among buyers, pushing them to secure desirable properties quickly. Financial considerations also play a crucial role. Many investors, having realized gains in the financial markets, are channeling their profits into real estate, anticipating potential market fluctuations around the elections.
The recently implemented ₹10 crore cap on long-term capital gains reinvestment under Section 54F of the 2023 Budget is another aspect influencing the range of ticket sizes observed.
Notable High-Value Transactions
Several noteworthy deals exemplify this trend:
- A sprawling 10,000-square-foot apartment at DLF's Camellias project in Gurgaon sold for a staggering ₹95 crore.
- Bollywood actor Mrunal Thakur and her father acquired two apartments in Andheri West, Mumbai, from Kangana Ranaut's family for ₹10 crore.
- The Halan family, prominent investors across various asset classes, invested a combined ₹104 crore in four sea-facing apartments at K Raheja Corp's luxury project in south Mumbai.
- Vratika Gupta, founder of the renowned decor brand Maison SIA, purchased a lavish apartment in Mumbai's Oberoi 360 West for over ₹116 crore.
- Demand extends beyond major metropolitan areas. Actor Krishna Kuppuswami Dasarakothapalli bought a duplex in Mumbai's Goregaon suburb for ₹30.50 crore.
Record-Breaking Sales in the Ultra-Luxury Segment
Anuj Puri, chairman of ANAROCK Group, highlighted the unprecedented surge in ultra-luxury home sales (properties exceeding ₹40 crore) in CY2023. ANAROCK Research data reveals a remarkable 281% year-on-year increase in the total sales value of these properties.
"CY2023 has already etched its name in Indian real estate history with record-breaking ultra-luxury property sales, even before the year's end," Mr. Puri remarked.
ANAROCK data further indicates that of the 62 ultra-luxury homes sold in CY2023, at least 12 were priced above ₹100 crore, compared to nine in 2022. Fifty luxury residences were sold in the ₹40 crore to ₹100 crore range, a substantial jump from just four such deals in 2022.
"This underscores the prevailing appetite for ultra-luxury homes in the country," Puri added.
Experts Weigh In
Amit Goyal, Managing Director of India Sotheby's International Realty, corroborated the increased activity in high-end real estate transactions toward the fiscal year's end, attributing the smaller ticket sizes compared to the previous year to changes implemented under Sections 54 and 54F in Budget 2023.
A surge in transactions exceeding ₹100 crore was observed in March 2023, as affluent individuals sought to invest their earnings in real estate before the revised capital gains tax exemption limit came into effect on April 1, 2023.
Ritesh Mehta, Senior Director and Head of Residential Services at JLL, affirmed that numerous buyers are now investing in real estate, primarily for personal use, leveraging profits from the stock market. He noted that most premium segment deals now range from ₹10 crore to over ₹100 crore, and this trend is expected to persist.
"This is one of the reasons for the relatively smaller ticket size compared to the previous year. Most of the deals in the previous year were above ₹90 crore, especially after the long-term capital gains tax exemption for purchasing residential units changed to ₹10 crore," Mr. Mehta explained. He anticipates the trend will continue in the coming months.