- New residential property at Tardeo comes with an avg. price tag of INR 56,200 per sq. ft. in the primary market
- Worli&Mahalaxmi at 2nd & 3rd spot, commanding INR 41,500 per sq. ft. & INR 40,000 per sq. ft. respectively
- Chennai’s Nungambakkam ranks 4th with avg. price of INR 18,000 per sq. ft; Egmore ranks 5th with avg. prices at INR 15,100 per sq. ft.
- No localities in Bangalore & Hyderabad make it to the top 10 list
- Average sizes of the premium properties are in the range of 1,190-3,500 sq. ft.
- Limited land supply & moderate construction pipelines drive high prices
South Mumbai’s Tardeo is India’s most expensive luxury residential location in the primary (first sale by developer) residential real estate market. Luxury properties here come with an astronomic average price tag of INR 56,200 per sq. ft. Research by ANAROCK reveals that over the last seven years, this tony location in the financial capital recorded a new launch supply of over 1,100 units in the premium segment with average size of 1,690 sq. ft.
The next two hyper-expensive luxury housing locations are also in Mumbai. Worli and Mahalaxmi rank 2nd and 3rd with new luxury residential properties price-tagged at INR 41,500 and INR 40,000 per sq. ft. respectively. These two localities recorded an aggregate supply of over 9,600 units since 2013.
In terms of property typology, 2/3BHK apartments dominate the property spectrum in these two MMR localities. On an average, the built-up size of these units ranges anywhere between 1,690-3,500 sq. ft. Besides the highly aspirational SoBo label, many luxury projects in these expensive markets offer unrestricted views of the racecourse and eastern sea views, premium amenities – and privacy, which is arguably the biggest luxury in India’s most congested city.
In addition to mainstay luxury amenities, luxury developers now market their projects as a new standard of sustainable and even with the organic living. A significant percentage of premium projects in these markets come with an organic vegetable gardens, organic café, herb garden, and so on.
The top 10 rankings are based on the average prices of all new luxury units launched between 2013 and H1 2019. Over this period, avg. prices in the mentioned micro-markets were calculated to be the highest in the respective cities. MMR is one of the most expensive markets among the top 7 cities and has several localities with high price tags. Only the top 3 most expensive localities are considered here.
Chennai – the most expensive South Indian market
Out of the three major southern cities tracked (Chennai, Hyderabad, and Bangalore), only micro-markets in Chennai qualify for the list of the top 10 most expensive luxury residential markets in India:
- Nungambakkam– 4th place – INR 18,000 per sq. ft.
- Egmore– 5th place – INR 15,100 per sq. ft.
- Anna Nagar– 7th place – INR 13,000 per sq. ft.
Interestingly, the average built-up size of the premium units in Chennai is about 17% larger than those in MMR. In Chennai, luxury apartment sizes are in the range of 2,190-2,890 sq. ft.
No localities in Bangalore and Hyderabad make it to the top 10 list. However, if we consider data in the primary market:
- Rajajinagaris the most expensive luxury market in Bangalore with luxury properties commanding a price of INR 11,500 per sq. ft., followed by Koramangala with avg. prices of INR 10,600 per sq. ft. and Jagjeevanran Nagar with INR 10,000 per sq. ft.
- Madhapuris the most expensive luxury market in Hyderabad at INR 6,500 per sq. ft. for luxury homes, followed by HITECH City and Gachibowli with avg. property prices INR 6,200 and INR 5,700 per sq. ft.
To sum up…
Even as India’s middle-class grapples with the prospect of an uncertain future in their careers and financial ability – the main drivers of housing demand – the rise of India’s super-rich continues unabated. According to Credit Suisse report, there were an estimated 3.42 lakh dollar-millionaires in India as on mid-2018 who collectively held around USD 6 trillion. It is forecast that 5.26 lakh Indian dollar millionaires’ wealth will be around USD 8.8 trillion by 2023. Market fluctuations make very little difference to the personal networth of these individuals.
In India as in the rest of the world, super-luxury housing remains largely insulated from median real estate and economic dynamics. Buyers in this housing category, coming from both ‘old’ and ‘new’ money, remain personally wealthy despite ups and downs in their businesses or the economy at large. The country’s most aspirational and expensive locations are their exclusive playgrounds.