With wealthy young Indians increasingly investing in luxury and super-luxury homes and commercial real estate experiencing a surge, global developers such as Forbes Global Properties and Thailand’s MQDC are entering India’s real estate market.
These developers are exploring partnerships and development and management models specifically targeting luxury residential projects. While the average price of these premium homes is over ₹5 crore, investments are also being made in co-working spaces and commercial real estate.
Forbes Global Properties, operating in 26 countries, is entering India with at least three projects covering 11 million square feet, spanning residential, commercial, and hospitality segments. Of this, 9 million square feet will be in Navi Mumbai, focusing on mixed-use residential and commercial developments. The remaining 2 million square feet will be divided between Delhi (1 million square feet for hotel, club, and commercial facilities) and Goa (1 million square feet for residential development).
“We have already secured a development deal for 100 acres in the Orange Smart City project in Navi Mumbai and are in advanced discussions with developers in Goa and Delhi. These agreements should be finalized in the next few weeks,” said AK Sharma, Chairman of the Indian arm of Forbes Global Properties, to businessline. Other cities on the company’s radar include Ahmedabad and Ayodhya.
Sharma stated that Forbes will make direct investments in project development, explore partnership models, and consider project financing through their pool of investors. The focus will be exclusively on premium and luxury categories, whether residential, hospitality, commercial, or retail.
Forbes also plans to enter the brokerage business in India, its core vertical globally, and is finalizing tie-ups with premium developers for listing and selling properties. For a project in the Delhi-NCR region, where discussions are ongoing, the average price of apartments will be upwards of ₹19-20 crore each, with listings for around 20 properties.
“We are also negotiating equity investments in two brokerage firms, which will give us a stake in these companies,” Sharma added.
Surge in Luxury and Super-Luxury Projects
Thailand-based real estate firm MQDC (Magnolia Quality Development Corporation) is increasing its investment in India, with plans for a second co-working space in Gurugram, following the establishment of its first one in Delhi.
India’s super-luxury market is experiencing a surge in new launches, driven by demand from start-up founders, young professionals, and families of recently listed companies, among others.
According to market research firm Prop Equity, the number of premium and super-premium projects (priced above ₹5 crore) launched in 2018 was 5,335, with a total valuation of ₹40,000 crore. By 2023, this number had soared to 13,275 projects, valued at ₹99,563 crore, reflecting a 2.5-fold increase. Prices have risen by 50-60 percent on average, with some secondary sales seeing price increases of up to 100 percent.
ANAROCK reports that 58 ultra-luxury homes, each priced above ₹40 crore, were sold in 2023, amounting to a total sales value of ₹4,063 crore. This represents a 247 percent year-over-year increase in ultra-luxury home sales, compared to 13 such homes sold for ₹1,170 crore in 2022.
