Mumbai Real Estate Deal: 360 One founder purchases two luxury apartments for over Rs 170 crore

Karan Bhagat, founder and CEO of 360 One (formerly IIFL Wealth & Asset Management), has purchased two sea-view properties in Oberoi Realty’s Three Sixty West project in Mumbai’s posh area Worli for over Rs 170 crore, according to documents accessed by Zapkey. 

The two apartments measure 12,896 square feet and are located on the 45th and 46th floors of the Three Sixty West project. 

Bhagat bought an apartment on the 45th floor for Rs 85.03 crore. The apartment has an area of 6448 square feet and four car parking spaces. The documents state the transaction was registered on May 22, 2024. 

The second apartment, on the 46th floor, is 6448 square feet and includes four parking spaces. Bhagat paid Rs 85.03 crore for the property, as per the documents. 

The documents show Bhagat paid over Rs6.44 crore in stamp duty to register the two luxury units. 

Bhagat purchased the apartments directly from Oberoi Realty, who sold them within three years of acquiring them from joint venture partner Sahana Group. Bhagat’s apartments are among the more than 60 units acquired by Oberoi Realty from project developer Oasis Realty. 

Emails were sent to Bhagat and Oberoi Realty. 

Oberoi Realty paid Rs 230.55 crore for a luxury penthouse at Three Sixty West in Mumbai’s posh Worli area on February 12, 2023. The company has reportedly acquired approximately 30,000 square feet through its affiliate RS Developers, making it one of the largest single deals in India. 

According to a regulatory filing, Oberoi Realty’s shareholders approved the acquisition of Oasis Reality’s Three Sixty West residential premises for up to Rs 4,000 crore in December 2022. Stamp duty and other expenses totaled Rs 204 crores. Oasis Reality has discharged  Rs 605 crore of its income tax liabilities. 

Kiran Gems promoters paid Rs 97.4 crore for a 16,000 sq ft sea-facing apartment at Oberoi 360 West in Mumbai, according to documents accessed by Zapkey.

 According to documents, the apartment measured 14,911 square feet (Rera carpet) and included 884 square feet of additional space.

In 2023, Welspun Group chairman BK Goenka purchased a penthouse in the same luxury project at Worli for Rs 230 crore, making it the second-biggest transaction in the city last year. The penthouse is located on Tower B’s 63rd floor and has a carpet area of 29,885 square feet. 

Madhav Prasad Agarwal of Sajjan India Group and IGE (India) Pvt Ltd bought two apartments in the Oberoi Realty luxury project in 2022 for Rs 151 crore and Rs 153 crore, respectively. The deal was among the top 10 real estate deals of the year. 

In 2023, Mumbai experienced an increase in high-end transactions after the finance minister removed the capital gain tax benefit for property sales above Rs 10 crore. 

In 2023, Sumir Chadha, co-founder and managing director of the private equity firm WestBridge Capital, purchased a luxury apartment on the 60th floor of the Oberoi Three Sixty West project in Worli for Rs 96.12.  

Last year, Everest Masala Group founder Vadilal Shah’s family purchased two apartments in Mumbai’s Oberoi Three-Sixty West project for Rs 143.50 crore. One apartment cost Rs 73.50 crore and the other Rs 70 crore. These luxury apartments include multiple parking spaces. 

In October 2023, Asha Mukul Agarwal, director at Param Capital Research Pvt Ltd, a leading capital market trading and investment firm, purchased three apartments in Lodha Group’s luxury project Lodha Malabar in South Mumbai for Rs 263 crore. 

D Mart owner Radhakishan Damani’s immediate family and close associate purchased 28 apartments in Three Sixty West’s Tower B FOR rS 1,238 CRORE IN 2023.  

Oberoi Realty’s Three Sixty West project consists of two towers: Tower A, with 66  floors and apartments, and Tower B, with 90 floors and 256 units, including 4BHK, 5BHK, and duplex configurations. It also includes two penthouses of 11,036 square feet each. 

The name for the sea-view project is most likely derived from its 360-meter height and the fact that all apartments face west. It is a ready-to-move-in ultra-luxury housing project. 

According to the MahaRERA portal, the Three Sixty West project is registered in the name of Oasis Reality as a promoter, with four promoters: SkyLark Buildcon Pvt ltd, Shree Vrunda Enterprises, part of Sudhakar Shetty’s Sahana Group, Oberoi Constructions Ltd and Astir Realty LLP, both promoted by Vikas Oberoi. 

Luxury residential housing sales increased by 151% in the January-March quarter of 2023, with Mumbai growing by 44% year on year and Delhi-NCR rising by 216%, according to the ‘India Market Monitor Q1 2023’ report released by CBRE South Asia Pvt ltd, a leading real estate consulting firm. 

In April 2024, 11,504 units were registered in Mumbai, a 9% increase from the previous year and contributing over Rs 1,043 crore to the state exchequer. According to data from the Maharashtra government’s Department of Registrations and Stamps (IGR), revenue from property registrations rose by 16% year on year (YoY) compared to the same period last year. 

What is luxury real estate, and why is it booming in India? Here’s Everything you should know about the investment!

India’s real estate market is undergoing a seismic shift, with the luxury housing segment experiencing unprecedented demand growth. Rising incomes, growing aspirations for upscale living, and a preference for modern amenities have fueled this transformation, increasing luxury home sales nationwide. 

In a recent development that exemplifies this trend, DLF, India’s largest developer, sold out 795 apartments worth Rs 5,590 crore three days after launching its latest luxury housing project in Gurugram. This builds on the success of previous projects, including ‘The Arbour,’ which saw pre-launch sales of Rs 8,000 crore in a similar timeframe. 

Non-resident Indians (NRIs) have played a significant role in driving the luxury housing market. NRIs have emerged as key contributors, accounting for nearly 25% of total residential sales at major developers. The allure of luxury properties, combined with the promise of exclusivity and modern amenities, has captivated both domestic and international buyers. 

According to property consultant Anarock Group, the share of luxury homes sold in India has tripled over the last five years, with luxury properties accounting for 21% of all residential units sold across the top seven Indian cities in the first quarter of 2024, up from 7% in 2019. 

Ashish Kukreja, Founder and CEO of Homesfy.in emphasized the underlying reasons for the underlying reasons for the rise in luxury home sales. Luxury real estate investments are attractive in India due to economic growth and the projected doubling of affluent individuals within three years. 

Kukreja stressed that investing in luxury real estate provides not only luxurious living spaces, but also long-term value and profit potential. The concentration of wealth among high-net-worth individuals has boosted demand for exclusive properties, particularly in prime locations such as  Delhi-NCR, Mumbai, Pune, Hyderabad, and Bangalore. 

Furthermore, luxury properties have historically shown lower volatility and served as a hedge against inflation, making them an appealing asset class for sophisticated investors seeking prestige and profit. 

Kukreja stated, “Industry analysis bodes well for the future of luxury real estate in India, projecting an 8-10% increase in property prices across key cities over the next two years, solidifying its long-term investment potential.” This projection is consistent with the prevailing sentiment among affluent investors, as evidenced by a recent survey in which 56% of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) expect the Reserve Bank of  India to lower interest rates in 2024. This optimism is fueled by anticipated rate decreases and other factors such as  limited inventory and the fear of missing out (FOMO), which collectively influence purchasing  behaviors, reinforcing the appeal of luxury real estate as a compelling investment avenue for discerning investors.” 

The current trend of premiumization is a significant contributor to this surge. With India experiencing rapid wealth creation and pent-up demand from the COVID-19 pandemic, consumers are increasingly drawn to luxury products and experiences. This trend has spread to the real estate market, where wealthy individuals build their portfolios by investing in luxury properties. 

According to India Sotheby’s International Realty’s annual Luxury Outlook Survey 2023, ultra-high-net-worth individuals are bullish on real estate, with 75% expecting the sector to thrive in the coming years. Notably, 61% think about costly homes, indicating a growing demand for high-end residential properties. Key cities such as Delhi-NCR, Mumbai, Goa, and Bengaluru are becoming popular locations for luxury real estate investments. 

Another factor driving the luxury housing boom is a scarcity of high-end apartments in desirable locations. Due to a shortage of luxury housing options in cities like Gurgaon, wealthy buyers are in search of exclusive properties with modern amenities and sophisticated designs. The shift from traditional bungalows to posh apartments reflects changing preferences among high-net-worth individuals, who prioritize security, convenience, and exclusivity. 

The influx of NRI investments is driving up demand for luxury housing in India. NRIs now account for nearly a quarter of total residential sales at major developers, up significantly from pre-pandemic levels. 

Meanwhile, the increase in luxury home sales has changed the trends in the property market, with the affordable housing segment losing market share. Affordable housing, which once dominated the market with a 37% share, has now dropped to around 18%, highlighting homebuyers’ changing preferences in the current climate. 

Among the top seven Indian cities driving demand for luxury homes, the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) are key hubs. In the National Capital Region, luxury homes accounted for 39% of all residential units sold in the first quarter of 2024, a significant shift from the affordable segment’s dominance in 2019. Similarly, the MMR has emerged as a luxury housing hotspot, attracting buyers looking for high-end properties with world-class amenities. 

Other cities, including Hyderabad, Bangalore, Pune, Chennai, and Kolkata, have distinct market dynamics, with strong demand for mid to high-end properties. Bengaluru, Chennai, Pune, and Hyderabad saw the highest sales in the mid-range and premium housing segments in the first quarter of 2024, reflecting homebuyers’ diverse preferences across regions. 

NCR luxury real estate: Capital appreciation takes center stage as wealthy Indians and NRIs increase their investments

Luxury and super-luxury residences at DLF Golf Links, DLF 5 in Gurgaon, including The Camellias, The Magnolia, and The Aralias, have seen a price increase of approximately 125 percent between 2021 and 2024. 

Luxury real estate was once only desirable for opulent living spaces, but it has now become a popular investment vehicle for affluent Indians looking to make significant capital gains. 

According to real estate experts, the rising demand for luxury living in the National Capital Region, particularly in Gurgaon, has led to significant growth in the market capitalization. 

They stated that luxury and super-luxury residences at DLF Golf Links, DLF 5 in Gurgaon, such as The Camellias, The Magnolia, and The Aralias, experienced a 125 percent price increase between 2021 and 2024. 

Demand for high-end luxury properties has increased significantly over the past decade due to homebuyers’ growing desire to invest in a place to live and a high-quality asset with good returns. 

Aakash Ohri,  Joint Managing Director and Chief Business Officer at DLF, stated the rise in wealth creation has expanded the luxury real estate market, driven by economic resilience among the affluent segments, who see real estate as not only an appreciating asset but also one with tangible and intrinsic value. 

“Moreover, the interest of the Indian diaspora in investing back into the country, fueled by emotional ties, favorable currency exchange rates, and simplified investment processes, has further bolstered the demand for luxury properties,” Ohri stated.

Where do HNIs buy? 

In January 2024, Smiti Agarwal, wife of Hemant Agarwal, CMD of retail giant V-Bazaar, paid Rs 95 crore for a 10,813 square-foot unit at DLF The Camellias in Gurgaon. 

Similarly, in October 2023, an 11,000-square-foot apartment at The Camellias sold for Rs 114 crore. The Camellias on upscale Golf Course Road has become a popular residential development for corporate executives and start-up entrepreneurs. According to sources, the founders of at least a dozen startups have purchased luxury residencies at The Camellias. 

Deep Kalra, the founder of MakeMyTrip, Sameer Manchanda of Den Networks, Aman Sharma of Boat, and entrepreneur Ashish Gurnani have all purchased super-luxury flats at DLF The Camellias. 

Vasudha Rohatgi, wife of former Indian Attorney General Mukul Rohatgi, paid Rs 160 crore for an 18,900-square-foot bungalow in Tony Golf Links in February 2023. 

Bhanu Chopra, the founder of RateGain, paid Rs 127.5 crore for a bungalow in Golf Links that month.

According to Shashank Vashishtha, Executive Director of Exp Realty India, the market has seen significant capital appreciation due to the growing demand for luxury living in the NCR. Golf Course Road, DLF 5, and Golf Links are the top choices for HNIs and NRIs seeking luxury and ultra-luxury residencies.”  

Capital Appreciation

Real estate brokers reported that super luxury residencies at DLF Golf Links, such as DLF The Aralias, have increased in price from Rs 12.5 crore in 2021 to Rs 27 crore as of JANUARY 2024. Prices in DLF The Magnilias have risen from Rs 16 crore in 2021 to Rs 35.5 crore in 2024. Similarly, prices for apartments in DLF The Camellias have skyrocketed from Rs 33-35 crore in 2021 to Rs 75 crore in 2024. 

They claim that the story has been similar to other ultra-luxury properties in capital appreciation, making luxury real estate an attractive investment option for HNIs. TARC Tripundra, located opposite Pushpanjali Farms in New Delhi, has seen a 70% increase in the last 18 months, with current rates reaching 26,000 per square foot. 

Siddharth S Sharma, GM of Sales at Elitepro Infra, a real estate consultancy, stated that prices in the luxury segment have skyrocketed in Gurgaon’s prime locations such as Golf Course Road, Golf Course Extension, and Southern Peripheral Road. DLF sold out a luxury housing project in 72 hours, demonstrating the high demand for such residencies. 

“Properties in other micro markets, such as M3M’s Trump Towers, have seen capital appreciation from an initial 10,500 PSF at launch to 30,500 PSF today. Another example is DLF’s The Crest, whose value has risen from 13,000 PSF to between 38,000 and 40,000 PSF today. These figures demonstrate that investing in luxury real estate is still viable,” he said. 

Why do HNIs and NRIs invest in luxury real estate? 

Sankey Prasad, Chairman, MD, India, and CMD Middle East Project Leaders at Collier’s, stated that while the US dollar’s strength against the Indian rupee attracts NRIs, capital appreciation drives HNIs to invest in the luxury residential real estate sector. 

“Approximately  44 percent of high-net-worth individuals are interested in investing in luxury real estate for capital appreciation. This is significant because it encourages them to accumulate assets for future generations and use their luxury properties to generate revenue. Wealthy homebuyers are unconcerned about the 40% increase in luxury  home prices over the last two ears because they believe the Reserve Bank of India (RBI) will lower interest rates in 2024, making it more affordable for them to purchase such properties.” 

According to a survey, Indian home prices will rise by 7% amidst the surge in luxury real estate.

A recent Reuters survey predicts that home prices in India will rise steadily by 7% this year and the following year, driven primarily by an increase in the purchase of luxury real estate.

The poll’s analysts emphasize the ongoing discrepancy between the supply and demand of affordable housing, a problem that will likely continue in the years to come.

The housing market has maintained its robust growth despite multiple interest rate hikes by the Reserve Bank of India between May 2022 and February 2023, thanks to the resilience of Asia’s third-largest economy. 

In 2023, the Indian housing market demonstrated remarkable resilience as home prices increased by 4.3 percent, the highest percentage increase since 2018. 

The Reserve Bank of India’s series of interest rate hikes has little effect on this growth trajectory. 

While rising housing costs are a positive indicator of a thriving market, they also exacerbate poverty and stagnant wages for those in lower socioeconomic groups. 

Aniket Dani, Director of Research at CRISIL Market Intelligence and Analytics, claims that high-net-worth individuals are the main force behind the recent spike in demand for luxury real estate. 

Developers are focusing more and more on starting high-end projects, which makes it harder for the affordable housing market to overcome obstacles.

Experts differ on solutions to concerns about the gap between supply and demand in the affordable housing market over the next two to three years.

There is disagreement over whether the gap will narrow or widen further, underscoring its persistent challenges.

The post-pandemic spike in high-income earners buying homes has driven prices up despite the Reserve Bank of India’s efforts to control inflation through interest rate increases. 

But prospects for interest rate reductions in the coming year are expected to improve affordability, which might help first-time homebuyers. 

Knight Frank India’s national director of research, Vivek Rathi, emphasized the possible effects of interest rate changes on demand dynamics and affordability. 

The survey predicts a noticeable increase in house prices in major cities like Bengaluru, Delhi, and Mumbai, with rises of 5.0 percent, 6.0 percent, and 9.0 percent anticipated for this year. 

These forecasts highlight how India’s real estate market is changing and how its various regions have different dynamics.