Ultra rich betting on unreal estate to preserve wealth
Indian industrialists and family offices are investing in luxury real estate. They see it as a way to preserve wealth and build a legacy. High-value property purchases have increased significantly in recent years. Mumbai, New Delhi, and Bengaluru are key markets. Families view these properties as strategic, long-term investments. These investments safeguard wealth for future generations.
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More than Prestige
The country's leading industrialists, promoters, and family offices are increasingly turning to trophy properties for wealth preservation and legacy building, betting on luxury real estate as a resilient asset class that offers a combination of capital appreciation, privacy, and intergenerational value.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 Mumbaibased 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.
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