Capital Gain of US Dollar on INR: HNI & NRIs Investing more on Luxury Real Estate in NCR

In order to achieve an opulent lifestyle with the touch luxury, affluent Indians and NRIs are investing on Luxury real estate in the country. According to the experts of real estate, the burgeoning demand for luxury living in the National Capital Region (NCR), particularly in Gurugram, has led to a notable capital appreciation in the market.

The experts said that, luxury and super-luxury residences located at DLF Golf Links, DLF 5 in Gurugram such as The Camellias, The Magnolia and The Aralias have witnessed a price appreciation of around 125% between 2021 and 2024. 

A significant rise in demand for high-end luxury properties because of the shift in homebuyers’ growing desire to invest in a place not only to live but also as a high-quality asset with good returns.

Joint Managing Director and Chief Business Officer, DLF, Aakash Ohri opined that, the creation of wealth in the luxury real estate market is driven by economic resilience among the affluent segments, for whom the real estate as not only an appreciating asset but having a tangible and intrinsic value.

He also added, “Additionally, the interest of the Indian diaspora in investing back in the country, fuelled by emotional ties, favorable currency exchange rates, and simplified investment processes, has further bolstered the demand for luxury properties.”

The brokers of real estate explained that, the super luxury residences located at DLF Golf Links such as DLF The Aralias have surged from Rs. 12.5 crore in 2021 to Rs. 27 crore onwards as of January 2024. Prices in DLF The Magnolias have surged from Rs. 16 crore in 2021 to Rs. 35.5 crore onwards in 2024. Similarly, prices of apartments in DLF The Camellias skyrocketed from Rs. 33-35 crore in 2021 to Rs. 75 crore onwards in 2024.

In the ultra-luxury properties segment, the story remains the same, in terms of capital appreciation, making the luxury real estate a good investment option for HNIs.

Siddharth S Sharma, GM Sales, Elitepro Infra, a real estate consultancy, told, the price rise in the luxury segment has been skyrocketing in Gurugram prime locations such as Golf Course Road, Golf Course Extension and Southern Peripheral Road. The demand is so high that DLF sold out a luxury housing project within just 72 hours.

He further added, “Projects in other micro markets like M3M's Trump Towers have witnessed capital appreciation from an initial 10,500 psf at launch to 30,500 psf at present. Another example is DLF's The Crest, which has seen its value appreciate from 13,000 psf to between 38,000 and 40,000 psf today. These figures affirm that investing in luxury real estate remains a steadfast option.”

According to Sankey Prasad, Chairman and MD, India and CMD Middle East Project Leaders at Colliers, as the US dollar is getting stronger against Indian Rupee, NRIs and HNis are getting atttarcted to invest more  on luxury residential real estate segment.

He explained, “Around 44%of HNIs are interested in investing in luxury real estate because of capital appreciation. This is a significant factor as it is motivating them to build assets for future generations and utilize their luxurious properties to generate income. Wealthy homebuyers are not worried about the 40% price increase in luxury homes over the last two years because they believe that the Reserve Bank of India (RBI) will reduce interest rates in 2024 making it more affordable for them to buy such properties.”