₹1,000 Crore Fund to Tap Luxury Home Market
In a significant development for India’s real estate market, Blackstone-backed ASK Asset & Wealth Management, in collaboration with India Sotheby’s International Realty, has unveiled a dedicated investment fund for ultra-luxury residential properties. The fund, named the ASK Curated Luxury Assets Fund, has an initial equity of ₹1,000 crore and will primarily focus on high-end homes in Tier 1 cities and prime holiday destinations.
Speaking to Fortune India, Amit Bhagat, Co-founder, CEO, and Managing Director of ASK Property Fund, revealed plans to close the initial funding round within the next 2-3 months. The fund aims to deploy ₹400-500 crore across two or three high-value transactions over the next two years, targeting investments in both metropolitan cities like Mumbai, Delhi, and Bengaluru, as well as in coastal towns and hill stations that are gaining popularity among affluent buyers. Bhagat further clarified that both ASK and Sotheby’s are co-sponsors of the fund, each contributing 5 percent of the total fund size. In addition, key individuals within both organisations will make further contributions to the fund. The primary goal of the fund is to generate robust returns on equity over the next 5-6 years, with a focus on attracting ultra-HNIs, HNIs, family offices, and other high-net-worth investors. The collaboration will leverage Sotheby’s global clientele to tap into the increasing demand for curated luxury homes in India.
The ultra-luxury real estate segment has witnessed significant transformation in the post-Covid era, with a marked shift in buyer preferences. Bhagat noted that the demand now leans more towards serviced residences as opposed to the earlier trends favouring villas and farmland. This growing appetite among India’s wealthiest individuals for high-end, serviced living spaces has created fertile ground for such targeted investment initiatives. To underline the scale of the opportunity, recent data from ANAROCK shows that 59 ultra-luxury homes, each priced above ₹40 crore, were sold in 2024 across India’s top cities, with the total sales value reaching ₹4,754 crore. Mumbai accounted for 52 of these sales, with 16 homes sold for over ₹100 crore each. Notably, many of these properties were in prime areas such as Worli, Malabar Hill, and Pali Hill, further solidifying Mumbai’s dominance in the ultra-luxury segment.
The fund aims to focus on carefully curated luxury units, with individual properties priced above ₹8-10 crore. The plan is to develop projects on residential-zoned lands secured from trusted developers, with a robust pipeline already in place. Bhagat emphasised the urgency to raise capital and deploy funds swiftly to capitalise on the growing demand for premium residential assets in India. This strategic fund marks a pivotal moment in India’s luxury real estate landscape, as it paves the way for institutional investments in an ever-expanding sector fuelled by the demand for top-tier residential properties.
