Last Updated:
With demand soaring and supply virtually frozen, ultra-luxury real estate may continue to shape itself as the country’s most coveted and closely-guarded wealth reservoir
According to Himanshu Garg, Director at RG Group, these purchases are seldom driven by short-term trading instincts.
In a season of volatile gold prices and an unpredictable stock market, a quieter but more decisive shift is unfolding among the country’s wealthiest investors. High-net-worth individuals, large family offices, non-resident Indians, and overseas funds are increasingly steering their wealth toward an asset that neither swings like equities nor stalls like bullion.
Their preferred harbour today is ultra-luxury residential enclaves and premium-grade commercial spaces, which, according to a new study, have now emerged as India’s “new blue-chip asset class”.
A joint report by global real estate consultancies Knight Frank and CBRE notes an unmistakable trend of the affluent class making a determined dash toward the country’s most exclusive micro-markets, where availability is minimal and demand appears insatiable.
From the tree-lined avenues of Delhi’s Lutyens’ Bungalow Zone to Mumbai’s prized sea-facing strips, from the soaring skyline along Gurugram’s Golf Course Road to select high-value pockets in Bengaluru, these neighbourhoods have transformed into the hottest destinations for capital seeking stability, legacy, and exponential growth.
At the heart of this surge lies an almost structural mismatch; virtually no land left for fresh development. Super-prime zones are tightly built-out, and land rarely enters the open market. This chronic supply shortage is pushing prices to unprecedented levels.
Analysts say these neighbourhoods have delivered exceptionally strong returns over the past few years, strong enough to convince large investors that this segment is not just a display of lifestyle but the most reliable form of wealth storage currently available in India.
Commercial real estate has added to the attraction, with rental yields between 6-10%, a range considered far more stable than returns from equity markets. Offices leased to multinational firms in Grade-A developments are emerging as long-term cash machines for the ultra-rich.
Suresh Garg, CMD of Nirala World, said that the ultra-luxury and top-end commercial markets are witnessing consistent year-on-year expansion, despite limited new inventory. “This segment has moved beyond being a lifestyle choice. It has become a dependable mechanism for safeguarding wealth,” he said.
Dinesh Jain, MD of Exotica Housing, explained that the lack of new development opportunities in super-prime pockets naturally accelerates the value of existing high-end commercial assets. Investors, he noted, enter these markets with confidence in stable rentals and long-term appreciation.
According to Himanshu Garg, Director at RG Group, these purchases are seldom driven by short-term trading instincts. Instead, he describes them as elements of long-horizon strategies designed to secure capital for future generations.
Gaurav Sobti, founder of the property advisory firm Homegram, attributed much of the market’s strength to its unique buyer profile. “These buyers are motivated by location, exclusivity, and heritage value. Price fluctuations are rarely a deciding factor at this end of the market,” he said.
Vaibhav Agarwal, promoter of Vision Business Park, pointed to another powerful factor, the record participation of foreign investors. “For many overseas investors, India’s premium real estate market is striking the right balance, high returns combined with comparatively lower risk,” he said.
Industry observers believe this movement marks a long-term structural shift. As geopolitical uncertainty, inflation cycles, and market volatility continue to unsettle traditional investment vehicles, India’s elite appear to be gravitating toward assets that offer both prestige and permanence.
November 28, 2025, 18:26 IST
Read More