India’s most wealthy people are seizing the slow property market trend to acquire luxurious properties for themselves. In the past week alone, two bungalows in South Mumbai have been acquired by the richest people in the business world and another famous property, the Hindustan Unilever guesthouse is earning interest.
A week ago, Kumar Mangalam Birla, acquired the Jatia House in Malabar Hill. The 30,000 square feet property facing the sea was acquired at Rs 425 crore, which makes it the most costly bungalow deal in India. The deal was said to exceed the whooping Rs 400-crore transaction for the Maheshwari House back in 2012.
India billionaire Cyrus Poonawalla, is also acquiring the Lincoln House for Rs 750 crore. The sea-facing property is much larger than the Jatia House at 2 acres.
In the previous year, the Godrej family purchase the Mehrangir House for Rs 372 crore.
These billionaires are purchasing these multimillion deals for their private use and market critics predict that there will be more similar deals to these as there has been a noticeable desire for luxurious residences.
Shashank Jain from PwC India said that these transactions may not indicate a widespread market rate since the drivers for these deals are not commercial and technical valuations.
Jain adds that not everyone can afford to buy properties such as these and that only those who have the capacity can fulfil their desires to purchase properties that are valued based on their iconic status and exclusivity. He also predicted that similar properties will come in and out of the market in the future.
Anuj Puri, country head consultant and chairman of JLL India said that there is a limited supply of these kinds of properties and they cannot be compared to other properties. Also, the buying power and the desire of the buyers of such grand properties are not ruled by economic considerations such as stock market performance and interest rates.
It has become known that Malabar Hill, Carmichael Road, Nepean Sea Road and Altamount Road are just a few of the locations in South Mumbai that wealthy people have their eyes on. In New Delhi, these locations are popular among the influential and rich: Lutyens’ Delhi, Amrita Shergill Marg, Dr. APJ Abdul Kalam Road and Prithviraj Road.