In Mumbai, luxury property purchases have increased significantly.
The ultra-elite segment of Indian investors is placing large bets on luxury residences in Mumbai. Following the purchase of a Rs 119 crore quadruplex in Bandstand, Bandra by Bollywood actor Ranveer Singh, Topper.com founder Zishaan Hayath and former Director of Angel Broking have both invested in luxury properties worth Rs 41 crore and Rs 50 crore, respectively.
Why are these houses so expensive?
Gandhi bought the home from a well-known developer, S Raheja Realty. The apartment is located on the top level of the Newlight complex. This luxury property is a 16-story building with two 12-story apartment towers constructed on four levels of platform parking with uber-lifestyle facilities. The overall complex is 2,00,000 square feet, and the apartment is 5,555 square feet. The duplex is valued at more than Rs 90,000 per square foot in the transaction.
Hayath’s property is about 4,000 square feet and is about two kilometres from Khar. On the 13th floor of Rustomjee La Fontaine on Turner Road, Bandra, it is a sea-facing apartment created by Rustomjee Constructions Private Limited. The opulent home is expected to cost Rs 41 crore. The opulent project spans over 50,000 square feet and includes a basement, ground level, and six podium parking places. The building has 15 storeys, eight of which are inhabited.
How will the real estate market fare in 2022?
Despite pandemic circumstances mainly receding from the country, the residential real estate market appears to be positive in 2022. According to industry statistics, around 306 upmarket housing units worth Rs 4,877 crore were sold in Mumbai during the initial quarter of the calendar year 2022. Transactions by notable people such as Radhakishan Damani, Motilal Oswal, and Jiten Doshi were among the luxury apartment deals registered in Mumbai in 2021.
What are the primary reasons boosting demand for luxury houses in India?
The ultra-rich have been the most active buyers of luxury residences in India. They mostly invest in real estate to maximise capital profits. Section 54F of the Income Tax Act allows for tax savings on capital gains if the earnings are reinvested in real estate.
President of India Sotheby’s International Realty (India SIR), Ashwin Chadha, says, “India SIR enables luxury property transactions, including Hayath’s recent purchase. To avoid capital gains tax, promoters are increasingly motivated to transfer their holdings to funds and organizations and engage in residential buildings.”
Furthermore, increased customer desire for superior facilities and cheap mortgage rates have been important factors in the sales of high-end buildings. Despite two straight hikes in repo rates this year, house loan interest rates in India remain lower than pre-COVID levels, which is a major driver of the trend.
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