Luxury real estate, once primarily sought for its opulent living spaces, has now become a major investment avenue for affluent Indians seeking substantial capital gains. According to real estate experts, the growing demand for luxury living in the National Capital Region (NCR), especially in Gurugram, has led to significant capital appreciation.
Experts note that luxury and super-luxury residences in areas like DLF Golf Links and DLF 5 in Gurugram, such as The Camellias, The Magnolias, and The Aralias, have experienced a price appreciation of approximately 125 percent between 2021 and 2024.
The increased demand for high-end luxury properties is driven by homebuyers’ shifting preference towards investing in properties that not only offer a place to live but also serve as high-quality assets with strong returns.
Prime Destinations for HNI Real Estate Purchases
In January 2024, Smiti Agarwal, wife of Hemant Agarwal, CMD of retail giant V-Bazaar, purchased a 10,813 square foot unit at DLF The Camellias in Gurugram for Rs 95 crore. Similarly, in October 2023, an 11,000 square foot apartment at The Camellias sold for Rs 114 crore. Located on the upscale Golf Course Road, The Camellias has become a favored residential project for business tycoons and start-up entrepreneurs. Sources indicate that founders of at least a dozen start-ups have invested in luxury residences at The Camellias.
Notable buyers include MakeMyTrip founder Deep Kalra, Den Networks’ Sameer Manchanda, Boat’s Aman Gupta, and entrepreneur Ashish Gurnani, all of whom have purchased super-luxury flats in DLF The Camellias.
In February 2023, Vasudha Rohatgi, wife of former Attorney General of India Mukul Rohatgi, bought an 18,900 square foot bungalow in the prestigious Golf Links for Rs 160 crore. In the same month, businessman Bhanu Chopra, founder of RateGain, acquired a bungalow in Golf Links for Rs 127.5 crore.
Shashank Vashishtha, Executive Director of Exp Realty India, stated, “The growing demand for luxury living in the NCR has led to significant capital appreciation in the market. Golf Course Road, DLF 5, and Golf Links are the top choices for HNIs and NRIs seeking luxury and super-luxury residences.”
What Drives HNIs and NRIs to Invest in Luxury Real Estate?
Sankey Prasad, Chairman and MD of India and CMD Middle East Project Leaders at Colliers, highlighted that the strengthening of the US Dollar against the Indian rupee is drawing NRIs to invest, while capital appreciation is motivating HNIs to invest in the luxury residential real estate segment.
“Around 44 percent of HNIs are investing in luxury real estate primarily due to capital appreciation. This incentive encourages them to build assets for future generations and to use their luxurious properties to generate income. Wealthy homebuyers are not deterred by the 40 percent price increase in luxury homes over the past two years because they anticipate that the Reserve Bank of India (RBI) will lower interest rates in 2024, making these properties more affordable,” he told Moneycontrol.
