Mumbai watch out! Buyers are now lapping up over ₹10-crore luxury apartments in Bengaluru

While big-ticket property deals are common in Mumbai’s real estate market, Bengaluru is fast following its footsteps. High-end residential units priced at ₹10 crore and above have seen growing demand and developers are reciprocating with proportionate fresh supply, industry players who spoke to HT Digital said.

“Both enquiries and conversions have gone up,” said Praveer Shrivastava, Senior VP, Residential, Prestige Group.

According to a JLL report, approximately 680 residential units priced above ₹5 crore were sold in the IT capital during the January-March period of 2024.

The upper end of the luxury housing market, ranging from ₹5 crore to ₹20 crore, is typically a niche and slow-moving market featuring limited inventory during a year.

“In the past two years, prices in this bracket must have increased by an average of 10% and volumes must have risen by 20-30%,” said Shantanu Mazumder, who is an executive director for Bengaluru region at property consultancy Knight Frank India.

Also read: Share of luxury homes' sales now almost at par with affordable housing units

Bengaluru-headquartered luxury real estate developer MAIA Estates recently sold out 4,118 -square feet 4 BHK units priced at ₹8.7 crore, in its first project located in North Bengaluru, company founder and chief executive Mayank Ruia said. The brand plans to push the envelope to offer 4.5 BHK units priced at ₹25 crore in its upcoming project.

However, even as Bengaluru plays catch up, a luxury property in the IT capital with similar price specifications as its counterpart in Mumbai, offers significantly more. Presently, the built-up area in 4 BHK housing units priced around ₹10 crore in Mumbai ranges between an average of 2,000 - 3,600 square feet, local brokers said.

Meanwhile, in Bengaluru, ₹10 crore can fetch one a 4BHK unit in prime locations across micro-markets, sprawling anywhere between 3,600-8,000 square feet. Due to high land cost and scarcity in Mumbai, the focus is on optimizing space efficiency, experts said.

Top deals in Q1 2024

According to information accessed through real estate data aggregation platform Zapkey.com, Bellandur in South-east Bengaluru and Rajaji Nagar in the city’s Western corner emerged as the top performing areas for real estate deals priced at ₹10 crore and above during the first quarter of the ongoing calendar year.

Adarsh Palm Retreat Villas in Bellandur recorded five transactions for 3 and 4 BHK units spanning over 3,000 square feet, and so did Phoenix Kessaku in Rajaji Nagar for units measuring between 6,179 - 11,967 square feet, data shared by Zapkey showed.

Also read: Bengaluru and Delhi NCR require the least time to liquidate unsold housing inventory

Meanwhile, Raheja Vivarea in Koramangala saw four transactions for 3, 3.5, 4 and 5 BHKs currently under construction and Embassy Boulevard in North Bengaluru’s Yelahanka clocked three transactions for 4 and 5 BHK villas ranging between 4,000-7,400 square feet, data showed.

Key offerings in the segment

Project location is a key consideration in premium luxury projects as prospective residents prioritize safety, connectivity and privacy. “Location for these projects within a micro market is very important. Typically, there needs to be good access, a certain view. There has to be a certain amount of exclusivity attached to these projects,” explained Mazumder.

Amenities in these projects are far lesser in number compared to those in the affordable or mid segments, entailing standard offerings such as a clubhouse, swimming pool, gymnasium and so on. They are however, top-of-the-line.

Also read: Relocating from Noida to Bengaluru? Here are 5 things you should know before renting an apartment in the city

The project is conceptualized in a manner to avoid any differentiation, ensuring each unit within the facility has the same features. Pricing may, however, differ on account of vertical placement, with units on upper floors commanding a higher premium. These projects also include a limited number of units.

Maintenance charges

In terms of services, everything is a call away, made available by a professional property manager. Owing to high service expectations and delivery levels, maintenance charges in these projects may vary from ₹12-18 per unit, as opposed to an average of ₹5-8 in apartments priced between ₹3-5 crore, experts said.

For instance, Embassy One located near Mekhri circle consists of 109 residences spread across two towers and is serviced/managed by Four Seasons.

Who are the buyers?

The primary takers in this segment comprise high and ultra-high net worth individuals, rich nonresident Indians, C-suite executives, promoters and entrepreneurs. Of late, the age profile of these buyers has also reduced with many professionals now climbing up the corporate ladder in their mid-thirties, said sectoral experts. They bring along a certain degree of vibrance in the segment with their no-compromise attitudes, they added.

Also read: Non-resident Indians from the US dominate real estate sales in Bengaluru; 2BHK and 3BHK housing units most popular

Resale market

Demand for high-end apartments priced between ₹5-7 crore far exceeds supply in the secondary market, especially in traditionally posh locations within the Central Business District such as Defence Colony and Koramangala, local brokers who spoke to HT Digital said. Accordingly, prices have increased by an average of 20% in the last 12 months.

“However, in the ₹10 crore and above bracket not many transactions are happening in the resale market. A buyer would rather buy a plot of land and construct the property himself/herself,” said Kiran Kumar, vice president of Hanu Reddy Realty.

Also read: Why are real estate developers making a beeline for Mumbai and Bengaluru markets?

Bengaluru’s real estate market also enjoys a robust demand for high rent-yielding commercial properties priced between ₹10-20 crore, Kumar added.