RUSH HOUR FOR MILLIONAIRE HOMES

WITH THE BULL RUN IN EQUITIES ACTING AS A CATALYST, INDIA’S HNIs ARE BACK TO BUYING MULTI-MILLION DOLLAR HOMES

- ANSHUL DHAMIJA

NOT SO LONG AGO, homes sporting price tags in excess of $1 million (above ₹7.4 crore) were struggling to find buyers, due, in part, to a struggling economy. Since demonetisation in 2016, followed by the roll-out of the Goods and Services Tax (GST) in 2017 and the NBFC crisis in September 2018, the country’s real estate sector has seen a precipitous downturn. Now, thanks to a surging stock market, various Central and state initiatives, including a historic low interest rate regime, the demand for the segment is shifting north.

Notwithstanding Covid-19, India’s high networth Individuals (HNIs) are back to buying million-dollar homes — be it a 40th-floor apartment in Mumbai’s Lower Parel, a weekend home in the hills, or a bungalow in Lutyens’ Delhi.

“The upper end of the market is showing exuberance,” says Gulam Zia, executive director, Knight Frank India, a property consultancy firm. According to Zia, the exuberance — seen over the last two quarters from January to June — is linked to the bull run in equities. In mid-August, the S&P BSE Sensex breached the 55,000 mark, having more than doubled from a low of 25,000 in March 2020. Analysts say the rally is being driven by the ample liquidity in the financial system and hopes of a strong economic recovery — India’s GDP is projected to grow at 9.5% in FY22.