At home in super luxury: the rise of a real estate trend

The sale of properties that only the super-rich can afford is bumping up two years after the pandemic hit the country

The rich and famous are making a safe investment bet: super luxury homes. Tata group chairman N Chandrasekaran this year bought a duplex for Rs 98 crore in Mumbai, actor Madhuri Dixit-Nene bought an apartment worth Rs 48 crore in the same city, and Infosys co-founder Kris Gopalakrishnan purchased twin properties in Bengaluru worth Rs 76 crore.

“Liquidity from capital gains including stake sale, start-ups, IPOs, dividends, stock market is driving demand for luxury homes. Large homes in posh areas, large size plots, bungalows, farmhouses are showing highest traction,” said Amit Goyal, chief executive officer (CEO) of India Sotheby’s International Realty.

Compared to the time before Covid-19 in 2020, the sale of such properties has increased. “Buoyed by the increasing demand for luxury homes, developers have also significantly increased the new supply in this category in H1 2022. The pandemic effect on home sizes continues with larger spaces being in higher demand across the top cities,” said Anuj Puri, chairman of ANAROCK Group, a real estate consultancy company.

Luxury and super luxury

Noteworthy super luxury home projects include DLF the Camellias, DLF Magnolias (both in Gurgaon), Rustomjee Paramount and Lodha The World Towers (both in Mumbai), Olympia Sky Villas in Chennai, Forum Atmosphere in Kolkata, and Prestige White Meadows in East Bengaluru. (see price chart below)

What distinguishes a luxury home from a super luxury? “A luxury home turns into a super luxury home because of the plush amenities and expensive interior design. In our experience, buyers of super luxury projects look for designer fittings and fixtures, expensive interior decor, advanced security systems, close-to-perfect view, plush amenities like in-house spa and rejuvenation centre, pool or concierge services,” said Amit Kumar Agarwal, founder and CEO of NoBroker.com.

“Today, luxury homes are no more about the brick and mortar only, but the overall living experience with convenience and every amenity and facility, allowing people the time to pursue their passion,” said Aakash Ohri, group executive director and chief business officer, DLF Ltd, the real estate giant.

DLF recently announced the launch of The Grove, a luxury residential project in Gurugram. According to sources, DLF sold all 292 homes in the project in eight days. “The Grove will introduce residents to the pleasures and privacy of living in expansive homes in low-rise buildings where the interior designs blend creative artistry with the latest technological advances,” said Ohri.

Location is everything for people buying super luxury homes. “There is a strong demand for luxury homes that are centrally located and provide superior design and amenities,” said Parag Munot, managing director of Kalpataru Ltd, a real estate company.

“Certainly, there is a spike in the customers’ demand in the super luxurious category. Ultimately, the super luxury category should represent the status of the customers and investors. There is also a spike in demand for other luxury residential complexes falling within the budget of under Rs 5 crores,” said Pankaj Bansal, director of real estate company M3M India, which has four such projects in Gurugram.

A super luxury home will typically have spacious air-conditioned units, private swimming pool, and a balcony overlooking a golf course or natural scenery. It will have private lifts and the address will have a five star clubhouse with sauna, Jacuzzi, gym, and theatre.

Premium purchase

A super luxury home’s purchase considers factors like builder record, security, and luxury facilities. “First and foremost, research well, be it a new home or resale property. A luxury villa or flat without proper infrastructure, classy neighbourhood and civic problems will remain a liability and will fetch very poor or negative returns, even after years,” said Vikas Wadhwan, group chief financial officer, Housing. com, PropTiger.com and Makaan. com.

“Online and physical assessment of locality, amenities nearby, approach to the property and healthcare support etc. is of prime importance. One must do thorough research of builder’ track record and brand, as that would help in assessing the quality of the project and return on investment in future,” he said.

While executing a high-value real estate transaction, take guidance from a reputed property broker. It will save you hassles while executing transaction, legal and tax compliance.

Consider taking housing finance for tax benefits. That’s not just for the money, but because your bank will examine the property to establish its legal and structural merits.

A significant portion of expense in a property purchase is on stamp duty and registration charges. This can be reduced by registering the property in the name of a woman relative. In most states, women gain rebates for taxes, bringing down the cost incurred.

People buying super luxury homes seek the good life. They must look for sustainability and quality of their purchase.