Ultra Rich Investing in Luxury Real Estate for Wealth Preservation
Indian industrialists and family offices are increasingly turning to luxury real estate as a means to safeguard wealth and build a legacy. High-value property purchases have surged in key cities like Mumbai, New Delhi, and Bengaluru.
Luxury Real EstateWealth PreservationFamily OfficesHighvalue PropertiesIntergenerational WealthReal EstateMay 28, 2025
From Worli’s skyline-defining towers and the tree-lined avenues of Carmichael Road in Mumbai to sprawling colonial-era homes in New Delhi’s Lutyens’ Bungalow Zone, the real estate market in prime areas of major Indian cities has seen the ultra-wealthy close deals exceeding Rs 25,000 crore over the last three years. This is up around 90% over the previous three years, according to data compiled by realty data analytics firm Zapkey.com.
This surge in high-value purchases by promoters and family trusts in cities like Mumbai, New Delhi, and Bengaluru reflects a broader shift in capital management strategies, family office experts said. These families see them as strategic, long-term investments designed to safeguard wealth across generations. “The trend is in line with how global markets have historically evolved in large cities,” said Vivek Gupta, partner at Deloitte India. “India is seeing this trend now—large business groups want to lock in assets that are priced and scarce and can, therefore, become a legacy to be passed across generations.”
Vedanta Group, Bajaj Group, Godrej, Infosys, Radhakishan Damani, Uday Kotak, GVK, Welspun, Polycab, Parle Products, and Divis Laboratories are among the large business group and families that have purchased bungalows, luxury apartments, and land parcels in major cities.
For ultra-wealthy families, highend properties are not mere lifestyle statements. They are strategic, long-term investments designed to safeguard wealth across generations. “Our family council has always held this belief that real estate offers a better width of investment avenues,” a leading industrialist said on condition of anonymity. “Prime real estate is better than gold is what we believe, and we expect this recent trend to keep getting stronger.”
The scion of a leading Mumbai-based industrialist said the evolution of real estate investment trusts (REITs) and land banks as a trend signals a long-term belief in rising property values. “The growth in the value of properties, especially in key cities have been phenomenal,” he said, seeking anonymity. “A number of key financial advisors suggested that we park funds in such assets where the surge in value will be significant down generations. Also, blocking key properties always makes good financial sense.”
Be it billionaire investor and DMart founder Damani’s Rs 1,001-crore purchase of a bungalow in South Mumbai’s elite Malabar Hill in April 2021, or banker Uday Kotak’s acquisition of an entire sea-facing Worli building for over Rs 400 crore in 2025—these deals are not outliers, but part of a clear and defining trend. They signal a deeper shift in how family offices are managing their capital, family office experts said.
“HNI families view real estate as a strategic asset for capital preservation and appreciation, which also helps in diversifying their wealth effectively,” said Sandeep Reddy, cofounder of Zapkey.com. “It’s also crucial for family wealth division, simplifying intergenerational transfers. While our analysis includes only marquee transactions, there are several transactions of this nature that are relatively smaller and not considered here,” he said. According to Reddy, beyond investment, there is a clear preference for premium, landmark addresses for end use, reflecting both prestige and a pursuit of long-term value.
Frequently Asked Questions
Why are ultra-wealthy families investing in luxury real estate?
Ultra-wealthy families are investing in luxury real estate to preserve wealth, build a legacy, and ensure long-term capital appreciation. These properties are seen as strategic, long-term investments that can safeguard wealth across generations.
What are the key cities where these high-value property purchases are taking place?
The key cities where high-value property purchases are taking place include Mumbai, New Delhi, and Bengaluru. These cities have prime locations that are highly sought after by ultra-wealthy families.
How has the value of these properties changed over the years?
The value of high-end properties in key cities has seen significant growth, with deals exceeding Rs 25,000 crore over the last three years, up around 90% compared to the previous three years.
What are the benefits of investing in luxury real estate for family offices?
Investing in luxury real estate provides benefits such as capital appreciation, privacy, and intergenerational value. It also helps in diversifying wealth and simplifying intergenerational transfers.
Who are some of the notable families and groups involved in these high-value property purchases?
Notable families and groups involved in these high-value property purchases include Vedanta Group, Bajaj Group, Godrej, Infosys, Radhakishan Damani, Uday Kotak, GVK, Welspun, Polycab, Parle Products, and Divis Laboratories.
Tags:
Related News Articles
Maharashtra's Real Estate Market Sees Upsurge in Property Registrations
Maharashtra's real estate market experiences a boost in property registrations and revenue despite unchanged RR rates, indicating a shift towards high-value transactions.
Top Stock Picks for Short-Term Gains: Bajaj Finserv, HDFC Life, HDFC Bank, and LIC Housing Finance
Market tech analysts Soni Patnaik, Mitessh Thakkar, and F&O analyst Rajesh Palviya recommend these stocks for short-term gains.
3 Financial Stocks Show Promise, Real Estate Overhyped: Samir Arora
Samir Arora, Founder of Helios Capital, highlights the potential of some NBFCs and microfinance companies, while expressing concerns about the real estate sector being overdone. He believes that HDFC Bank, Kotak Bank, and Bajaj Finance, which have underpe
NBT Office Relocation and Pune Book Festival Expected to Draw 7.5 Lakh Visitors
The National Book Trust (NBT) is set to shift its office to the city, a move that coincides with the highly anticipated Pune Book Festival. The festival, expected to attract 7.5 lakh visitors, is a significant cultural event that showcases a wide array of
Metro Brands Promoters Acquire Five Luxury Apartments in Mumbai's Worli for ₹405 Crore
The promoters of footwear retailer Metro Brands have made a significant investment in Mumbai's luxury real estate market by purchasing five apartments in the Worli area for ₹405 crore. These apartments are located in one of the city's tallest buildings, P
Maharashtra Real Estate: Majority of Developers Update Project Details for MahaRERA Compliance
A significant number of real estate developers in Maharashtra have taken steps to improve their compliance with the Maharashtra Real Estate Regulatory Authority (MahaRERA) by updating their project details. This move reflects a growing commitment to trans