ITC chairman YC Deveshwar’s Rs 85-crore purchase of a house in Delhi’s Shanti Niketan and YES Bank chief Rana Kapoor's acquisition of a Rs 128-crore property in Mumbai's Altamount Road have one thing in common - they have both been bought for residential use by the purchaser.
And more such deals will take place both in Delhi and Mumbai as demand is high and supply is limited.
In Delhi, six residential properties worth at least Rs 50 crore each have changed hands so far this year. In all but one case, the buyers plan to live in these houses. In the sixth case, it could not be confirmed if the buyer, a builder, plans to redevelop the property for sale.
In Mumbai, too, a similar trend is visible. However, a majority of the R50-crore-plus transactions in this city are for apartments, unlike in Delhi, where all the six such transactions are for independent houses.
A well-known Delhi businessman recently paid Rs 120 crore for a house on a 1,200 sq yard plot in the Capital's tony West End area. Another picked up a house on a 375 sq yard plot in Golf Links for Rs 60 crore.
Real estate experts said this trend (of buying ultra-expensive houses for personal use) will continue among the super-rich.
“A typical promoter who has experienced the volatility of the stock market will prefer to invest in a high-end property because there are no sudden surprises or a 10-20% drop in value in a single day,” said Ramesh Nair, managing director, West, Jones Lang LaSalle India, a large real estate consultancy.