Real Estate Discovers Its Animal Spirit – Fortune India

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Mumbai has emerged as the most expensive market in the country. In the costliest apartment ever sold in India’s real estate history, J.P. Taparia, founder of contraceptive maker Famy Care purchased a sea-view luxury triplex apartment for over ₹369 crore in South Mumbai’s Malabar Hill earlier this year. The over 27,000 sq. ft. three-floor luxury apartment in the super-luxury residential tower Lodha Malabar is located on the plush Walkeshwar Road, overseeing the Arabian Sea. But a record block purchase of apartments took place in February this year by family members and associates of Avenue Supermarts’ owner Radhakishan Damani, whom the Big Bull Jhunjhunwala considered his mentor. The ₹1,238 crore deal involved the purchase of 28 premium apartments in Worli (Mumbai).

Not surprising that Liases Foras Real Estate Rating & Research reveals that over the past 12 months, the market for apartments priced at ₹10 crore and above has been flourishing across the country. The rush in the high-end segment is such that even the Delhi Development Authority (DDA), having built affordable housing for over 60 years, is now venturing into luxury housing. For its upcoming project, DDA has priced HIG apartments between ₹2 crore and ₹2.5 crore, and penthouses at about ₹5 crore.


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Incidentally, the annual price rise across the seven major cities is significantly higher in recent times. “If we consider data trends of the top seven cities in the past decade, that is, between 2013 and 2023 (9M, January-September), then average residential prices have seen the highest yearly rise in 2023,” says Prashant Thakur, director, research, Anarock. While average property prices in 2023 went up 11% in the seven cities, Hyderabad saw the highest annual jump of 18% to ₹5,400 per sq. ft. (Q3CY23). Prices in Bengaluru went up 14%, followed by NCR and MMR at 12%. But as expected, the cumulative value of homes in Mumbai rose the highest to ₹1.64 lakh crore (See: Real to surreal).

The last best yearly rise in the past decade was in 2013 when top seven cities saw their collective average prices rise 7% on a yearly basis — from ₹4,558 per sq. ft. in 2012 to nearly ₹4,895 per sq. ft. in 2013. Thereafter, the growth in prices has either reduced year-on-year or remained the same until 2022. Irfan Razack, whose company Prestige Estates entered the Mumbai market in 2021, had told Fortune India in an earlier interaction, “Real estate is an illiquid asset, but gives you much more gains over a period of years if the location is good, the property is right, and the developer is reputed.”

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