From his terraced penthouse, Anant Goenka watches the sun dip into the Arabian Sea. The 27-year-old head of New Media at the Indian Express Group lives on the 25th floor of Express Towers at Nariman Point, one of the most sought-after addresses in India. The penthouse is far removed from the noise and grime that defines Mumbai. The landmark building is flanked by Air India’s office towers and Oberoi Trident Hotel. “There is an element of peace [here], no crazy traffic or honking. I just love the ocean,” he says.
Goenka has lived in Nariman Point for most of his life. He works in the same building where his penthouse is located, and is one of the privileged handful who don’t spend time commuting to work. He has few neighbours, but they have one thing in common: Wealth.
The parameters of what draws the affluent Indian to a particular neighbourhood varies, and may include access to good schools and health care, ease of commute, vibrant nightlife, open spaces, planned neighbourhoods, gated communities, privacy and serenity. But the single unifying marker is socio-economic status. The rich like to live with the rich.
This trend has been reinforced even in newer cities such as Gurgaon and Noida, and in the gated communities of Bangalore and Pune, where luxury apartments and complexes are defined not only by square foot space, but also by their proximity to airports and highways. For developers the brief is simple: Provide the best amenities that money can buy and ensure ease of commute. “Luxury homes attract people of the same socio-economic background,” says Ashish Jerath, vice president (sales) of New Delhi-based Emaar MGF, one of India’s top real estate developers.
In Mumbai, the higher the better
A fair number of Mumbai’s tribe of wealthy people are clustered in the shady enclaves of Colaba, Malabar Hill, and Altamount Road, where India’s richest man Mukesh Ambani built Antilla. Nearly 50 of the richest Indians live within a 10-km radius of Altamount Road. These are bastions of old wealth that date back to the Raj.
The metaphorical gates of such neighbourhoods are zealously guarded by families that have been living there for generations. Community networks satisfy the six degrees of separation rule, which contends that everyone knows everyone through a separation of six people. And of course, demand outweighs supply. At Rs 91,000 or $1,500 per sq ft, Altamount Road is the costliest neighbourhood in India. It ranks ninth in the Forbes list of top 10 most expensive areas in the world. In Manhattan, New York City, apartments in Soho, Greenwich Village and Midtown are in the $1,500 per sq ft range.
At $36,500 (Rs 22 lakh) per sq ft, Pollock Path on Peak in Hong Kong is one of most expensive stretches of real estate in the world. The Peak is a hill located near the central business district and Lan Kwai Fong, a street lined with pubs that remain open till 6 am every day.
Hong Kong and Mumbai share similar problems such as high population density and lack of space. Even money cannot guarantee an apartment in a sought-after address, which is why developers in Mumbai have spread out, creating ‘islands’ of luxury that stand apart from the city’s urban sprawl. The freeing up of mill land in Lower Parel has spurred the growth of luxury apartments, which average at about Rs 30,000-32,000 per sq ft. High-rises are now a common feature in middle class neighbourhoods such as Chembur and Matunga, while expats and the young rich have made Bandra their playground.
Powai, formerly a village with a lake, has witnessed a massive makeover, to become one of Mumbai’s most well-planned residential and commercial hubs. The aim was to create a neighbourhood that catered to the business area of Seepz. With its proximity to IIT, Powai, the area has become home to many startups.
In Gurgaon, buildings with apartments occupying a single floor are rare, but the city has its fair share of gated communities that have come up over the last five years. There are at least five to six luxury properties near the golf course such as DLF Magnolias and Emaar’s Marbella. Prices can go up to Rs 10 crore. “A large part of the buyers in these Gurgaon projects are small- and medium-sized business owners, who have their offices in areas of Udyog Vihar and Sohna Road,” says Ashish Jerath of Emaar MGF.
(This story appears in the 16 May, 2014 issue of Forbes India. To visit our Archives, click here.)