Big Deal

Records were shattered and history rewritten in the Indian real estate market when an ultra-luxurious penthouse in Gurugram got sold for a whopping Rs 190 crore earlier this month. Spanning 16,290 square feet, the opulent property in DLF’s luxury residences Camellias was bought by Info-x Software Technology Pvt Ltd, through its director Rishi Parti. The deal, which got Haryana a stamp duty of over Rs 13.3 crore, has taken the per square foot rate to around Rs 2 lakh, which is way higher than the most-sought after areas in Delhi and even Mumbai. Previously, Mumbai’s Lodha Malabar held the record for India’s costliest high-rise transaction, with three apartments being sold for Rs 263 crore at Rs 1.36 lakh per square foot (carpet area).

The Parti deal has re-established Gurugram’s supremacy as North India’s ‘billionaires’ row’, as it has left behind Mumbai’s Altamount Road and Delhi’s Lutyens Zone. Though going through its toughest sanitation and air quality crises, Gurugram is increasingly becoming the first choice for India’s wealthiest. Regulations in heritage zones like Delhi’s Lutyens Bungalow Zone (LBZ), where construction norms are stringent, make properties in Gurugram an attractive alternative. Offering larger spaces, modern infrastructure and unmatched facilities, the city continues to redefine the benchmarks of luxury living in India.

Over the years, Gurugram has established itself as the top luxury real estate market in the National Capital Region (NCR), driven by an influx of high-end residential projects and a robust demand from affluent buyers. A recent report by real estate and investment services firm CBRE highlighted that sales of properties priced over Rs 4 crore surged by 38 per cent from January to September this year.

The coveted addresses are now inhabited by industrialists, CXOs, start-up founders and the who’s who of Delhi. Majority of them have moved away from independent kothis to these 10,000 sq ft apartments located in Delhi’s suburbs.

The transaction reflects a growing appetite for the luxury real estate in the Delhi-NCR region. Post-pandemic, high-end residential sales have surged, with DLF Camellias consistently leading the pack as the area’s most coveted address. Nearby, DLF Dahlias is setting new benchmarks with 400 bare-shell units priced between Rs 60 crore and Rs 100 crore. Over 100 of these apartments have already been sold during the pre-launch.

The Camellias itself, launched as bare-shell units by DLF in 2014 at Rs 22,500 per sq ft, has witnessed remarkable appreciation. Recent transactions, including an 11,000 sq ft apartment sold for Rs 114 crore in October 2023, make it a prime address for high-net-worth individuals.

The grandeur of Parti’s deal, experts say, highlights how buying houses in Dubai and New York is now way cheaper than in areas like Golf Course Road in Gurugram. It’s the fear of missing out on premium addresses, they add, which is the key driving force behind a boost in ultra-luxury housing.

“From 2000 to 2024, only three such complexes have come up, meaning eight years per project. These are exclusive Rolls-Royce apartments — almost 400 units per project out of 1,320 units spread across Aralias, Magnolias and Camellias. This comprises only .001 per cent of the total supply in the market. These ultra-luxury products are few and far between, and that’s the reason why they get lapped up the minute they are launched,” says Samir Jasuja of NSE-listed firm PropEquity.

“These high-value transactions underline the enduring appeal of luxury housing. Corporate CXOs and entrepreneurs are not only creating wealth, but also investing in properties that symbolise their stature,” says Abhishek Kiran Gupta, CEO and co-founder of CREMatrix and IndexTap.

DLF Homes lists increased wealth creation and economic resilience as the key reasons behind the boost in luxury housing in Gurugram.

“Gurugram, particularly areas like Golf Course Road and DLF5, has emerged as a prime destination for real estate investment, witnessing record growth in capital appreciation, rental yield and the demand for newly launched projects. This shift is driven by a newfound appreciation for real estate as both an appreciating asset and a source of tangible and intrinsic value,” points out Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF Homes.

According to Ohri, India has witnessed a remarkable increase in the number of UHNIs (ultra-high-net-worth individuals), with expectations of further wealth growth in 2024, alongside a projected 50 per cent growth in UHNIs over the next five years.

“In addition, Gurugram is luring a lot of UHNI diaspora, further bolstering the uber-luxury real estate market. Price inelasticity in luxury goods reflects the unique value and prestige associated with such products. Moreover, the appeal of super-luxury homes extends beyond comfort and opulence to include a sense of community and prestige,” adds Ohri.

As Gurugram’s luxury real estate market strengthens, experts forecast continued growth through 2025, driven by expanded infrastructure, increased connectivity and a sustained influx of high-end buyers. The city’s development trajectory is expected to reinforce its dominance in NCR’s premium housing sector well into the future.

Raheja Developers’ Nayan Raheja says, “The city’s real estate has become synonymous with innovation and exclusivity. As the demand for premium residences continues to rise, we foresee a greater emphasis on craftsmanship, smart integration and strategic locations. Our projects not only offer premium amenities, but also maximise future growth potential, making them the ideal investment for discerning buyers.”

Delhi-NCR’s housing costs reflect successful luxury developments and increased demand for spacious 3-4 BHK units, with regional prices having gone up by 75 per cent since 2020. Analysts say the unsold property stock in the eight major cities decreased for the third consecutive quarter to 10 lakh units by September, with the Mumbai Metropolitan Region (MMR) representing 40 per cent.

Surge in housing prices across the country

• Delhi-NCR tops the country in registering a surge in housing prices in the last one year, with an increase of around 32 per cent. According to the latest year-on-year (YoY) comparison of the third quarter, many parts of Gurugram-Dwarka Expressway, Golf Course Road Extension and Sohna Road in Gurugram witnessed over 50 per cent yearly price growth. Analysts credit it to the recent infrastructure upgrade like Dwarka Expressway and Mumbai Expressway. Noida, too, registered a surge owing to its proximity to the upcoming international airport at Jewar. The report highlights that average housing prices across the top eight markets in India rose 11 per cent YoY at Rs 11,000 per sq ft during the third quarter of 2024. Average housing prices have increased for the 15th consecutive quarter since 2021. While Delhi-NCR witnessed the highest rise, Bengaluru stood second at 24 per cent, while Ahmedabad and Pune registered an increase of 16 per cent and 10 per cent, respectively.
• CREDAI national president Boman Irani says that consistent price rise demonstrates market strength, with increased interest in larger properties, particularly in premium segments, leading to this pattern.