Are ultra-luxury properties becoming the new blue-chip stock for India’s rich?
The ultra-luxury real estate market was once mainly about lifestyle. Today, it is emerging as a critical wealth-preservation tool for the country’s richest buyers. These properties, ranging from over ₹50 crore residences to ₹200 crore marquee apartments, are increasingly viewed as long-duration financial assets. They are akin to blue-chip equity: they are scarce, stable, and remarkably resilient during market turbulence.
Experts say capital appreciation is not the main reason Ultra-High Net Worth Individuals (UHNIs) make these high-end property purchases. They seek strategic portfolio diversification, a prestigious address, intergenerational wealth creation (for the next generation), lifestyle elevation, and the security of a hard asset that resists erosion. Unlike other assets, this ultra-prime residential category works on an 8–10 year investment horizon. Patience, not liquidity, determines the returns. The longer the hold, the stronger the preservation and compounding effect.
This trend is evident in recent major transactions. For example, a Delhi-NCR–based industrialist recently purchased four apartments at DLF’s ultra-luxury project, The Dahlias. The apartments totaled nearly 35,000 sq. ft. on Golf Course Road and cost about ₹380 crore. Property brokers call this one of the country’s most expensive residential transactions.
Other related large deals highlight the trend. A British businessman, Sukhpal Singh Ahluwalia, bought an 11,416 sq. ft. apartment in The Camellias for ₹100 crore just a few months ago. Last year, the most expensive apartment deal in India was recorded there. A 16,290 sq. ft. penthouse sold for ₹190 crore. The buyer, Info-X Software Technology Pvt. Ltd., paid ₹13.30 crore in stamp duty alone.
Resemblance to blue-chip stocks
Real estate consultants note that ultra-luxury assets like The Camellias, Magnolias, and The Dahlias increasingly function as long-duration wealth-preservation instruments. Their extreme scarcity, tightly controlled supply, and deep pool of HNI (High Net Worth Individuals) and UHNI buyers give them blue-chip stock characteristics. This includes relatively steady appreciation, demand that holds up during down cycles, and insulation from broader market volatility.
Samir Jasuja, founder and CEO, PropEquity agrees that some of the ultra-luxury properties behave exactly like blue-chip stocks, a trend clearly visible in several marquee projects in Gurugram and Mumbai such as the Camellias and 360 Degrees West. DLF’s Camellias, for instance, launched at around ₹30,000 per sq ft and now commands nearly ₹1.5 lakh per sq ft. Prices at The Dahlias have already risen from ₹70,000 to over ₹1 lakh per sq ft in just six months. In Worli, too, prices have doubled from ₹1 lakh to ₹2 lakh per sq ft in three years.
The reason is simple: severe supply scarcity and a buyer base with no budget constraints. Interestingly, many of these purchases come from within the same micro-markets. Nearly 40% of Camellias buyers previously owned homes in Aralias or Magnolias. Over 20% of Dahlias buyers already own units in Aralias or Camellias. One of the biggest recent deals was by an existing Camellias owner. Buyers who purchased at ₹40,000 per sq ft are now comfortable entering new launches at ₹1 lakh per sq ft because they have experienced this appreciation firsthand and expect further upside, he explains.
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These HNI investors are not flippers, they are long-term holders of the asset. A typical pattern: someone who owns a home in Camellias may buy into Dahlias; once the new project is completed and furnished, they may shift there and lease out their Camellias unit. Rental yields are high, a 7,000 sq ft apartment in Camellias can fetch around ₹10 lakh per month.
“Much like blue-chip stocks, the strategy is to hold, not sell. The ‘dividend’ comes in the form of substantial rental income, while long-term capital appreciation functions like the compounding growth of premium equity,” he said.
Scarcity is the biggest driver of demand for such landmark properties, according to Gaurav Gupta of ZenoRealty. Ultra–low-density projects along Golf Course Road, such as DLF’s projects, and other trophy apartments across major cities can deliver 8–12% annualised appreciation over long periods. This growth is fuelled by limited supply and strong brand value. Luxury real estate at this level serves a dual purpose: a status asset and a long-term capital preservation tool.
Stock market versus ultra-luxury real estate
Luxury real estate is not a perfect substitute for equity. The biggest difference is liquidity. A stock can be sold instantly; a ₹50– ₹300 crore home may take months, sometimes years, to find the right buyer. This makes them reliable for long-term capital preservation, but not for short-term gains or rapid trading.
Experts emphasize that the ultra-rich are not buying to ‘flip’ the assets; they are buying to preserve wealth. For HNIs, these assets function as a hedge against inflation, a diversification tool, and a means of intergenerational wealth transfer. Their prestige and address create a tangible economic moat, ensuring demand remains resilient even during market corrections.
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Ritesh Mehta, Senior Director, and Head (North and West), JLL India, notes that for deals above ₹200 crore, HNIs are not buying for short-term appreciation. They invest because few other asset classes can safely absorb such large amounts of capital. When someone already has a substantial equity portfolio, they look to diversify, and ultra-luxury real estate becomes the natural choice.
In this segment, appreciation is not the primary motive. These purchases are largely driven by portfolio diversification, long-term wealth storage for the next generation, end use and lifestyle upgradation, and a safe, tangible asset that preserves capital. Ultra-luxury real estate works on an 8–10 year horizon. The longer the investment, the stronger the returns. If you try to exit quickly, you may even incur losses due to the highly illiquid nature of marquee properties, he said.
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“Many of today’s buyers come from sectors with all-time high valuations,” he adds. “This includes tech founders, startup promoters diluting equity, and business owners with significant liquidity. For them, ultra-luxury homes are not speculative bets but stable, long-term wealth anchors.”
Is the price appreciation of high-end properties comparable to that of other residential segments?
However, over longer periods, overall price appreciation in ultra-luxury real estate is broadly similar to other residential segments. “This is true unless the property is in a highly supply-constrained micro-market. Luxury homes vastly outperform when there is a clear demand–supply mismatch. Bespoke locations like Lutyens in Delhi, Malabar Hill/Nepean Sea Road in Mumbai, or luxury projects on Golf Course Road in Gurugram continue to see far stronger appreciation. This is due to their limited supply and high desirability among HNIs and UHNIs,” explains Ashwin Chadha, CEO, India Sotheby’s International Realty.
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Financial planner Suresh Sadgopan, founder of Ladder7 Financial Advisories, believes high-end luxury homes are generally purchased for self-occupation. As an investment, UHNIs should instead explore commercial properties, where rental yields are higher, or better still, REITs (Real Estate Investment Trusts). REITs offer good overall yields (including capital appreciation reflected in NAV) of between 6–8% per annum, he said.
