The West side story: Maharashtra, Gujarat account for 40% of wealth on Hurun India’s real estate rich list

• Only three of the top 10 richest real estate billionaires from India saw their wealth rise in the last one year.
  
• Commercial real estate entrepreneurs from the list cumulatively added ₹3,000 crore of new wealth.
  
• Almost 40% of the new entrants in the Grohe-Hurun India Real Estate Rich List 2023 hail from Tier-2 cities.
  

With a personal wealth of ₹59,030 crore, DLF’s Rajiv Singh is India’s richest real estate billionaire despite losing 4% of his wealth in the last one year, as per Hurun latest list released on Tuesday. Mangal Prabhat Lodha and family takes the second spot on the Grohe-Hurun India Real Estate Rich List 2023 even after losing 20% in one year.

In fact, only three of the top 10 richest real estate billionaires from India saw their wealth rise in the last one year — Chandru Raheja and family, Niranjan Hiranandani and Vikas Oberoi. The entire list has 100 individuals from 67 companies and 61% of them saw their wealth increase in the last one year.

The cumulative wealth of the entrepreneurs featured in the Grohe-Hurun India Real Estate Rich List 2023 has witnessed a 4% increase compared to an 18% decline in the BSE Realty Index.

The real estate sector, which has seen its ups and down before and after the pandemic — has had an effect on the wealth of billionaires in the sector. The entry point to the top 10 surged from ₹3,350 crore in 2017 to a staggering ₹15,000 crore now. Similarly, the threshold to make it to the top 50 has risen from ₹660 crore in 2017 to ₹1,300 crore at present.

Top 10 real estate billionaires of India


Source: Grohe-Hurun India Real Estate Rich List 2023

The Tier-2 story

The real estate sector has been creating wealth and churning out new billionaires — a quarter of the list comprises new entrants. Anas Rahman Junaid, Hurun India managing director and chief researcher, said that the stories about real estate tracked through the list indicate the dynamic nature of the sector

“A quarter of the list has been purged and replaced over the last year. Moreover, since its inception (in 2017), an astounding 50% of the list has witnessed the emergence of fresh faces, reflecting the ever-evolving landscape of this thriving industry,” said Junaid.

New sectors have also been emerging with immense growth in the office, retail and commercial real estate segments. In the list, commercial real estate entrepreneurs cumulatively added ₹3,000 crore of new wealth, indicating the resurgence of the sector in India.

Also, wealth in real estate is also moving beyond Tier-1 cities. Entrepreneurs hailing from Tier-2 cities are forging some of the most impactful real estate enterprises in the nation.

“Almost 40% of the new entrants in Grohe-Hurun Real Estate Rich List 2023 hail from Tier-2 cities. This highlights the fact that geographic boundaries no longer limit the rise of influential real estate players in India. Notably, a staggering 60% of the list entrants have already expanded beyond their primary locations, to build pan-India real estate brands," said Junaid.

A lot of the real estate wealth also comes from the West – Maharashtra and Gujarat account for 40% of the cumulative wealth of the list. This is followed by all the five Southern states, which account for 34%. The North region consisting of Delhi, Haryana and Punjab are third with a 25% share.

Real estate wealth creation, however, is not a young person’s game. The average age of billionaires on the list is 63. The youngest on the list is 45-year-old KV Satish of DS Max Properties, and the oldest is 94-year-old Prithvi Raj Singh Oberoi of East India Hotels.