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Dinesh Dhamija
The world of luxury real estate has witnessed a distinct shift in recent years, with an emerging wave of Indian billionaires making their mark on the prime property scene in London. The latest high-profile purchase that has caught the eye is Adar Poonawalla’s acquisition of Aberconway House in Mayfair, which he bought for a staggering £138 million last week. This move places Poonawalla alongside a growing list of Indian billionaires who are making their presence felt in the heart of the British capital.
Poonawalla is now just a short bicycle rickshaw ride away from fellow Indian billionaire Ravi Ruia, who paid £113 million for Hanover Lodge in Regent’s Park earlier this year. In addition, the famous Hinduja family has poured millions into the redevelopment of the Old War Office in Whitehall. The Hinduja family acquired the 1,100-room property for £350 million back in 2016 and has since transformed it into a world-class hotel and luxury apartments.
This trend of Indian billionaires flocking to London’s prestigious addresses is nothing new, but it has accelerated in recent years. Poonawalla’s purchase of Aberconway House brings the total number of Indian billionaires with high-end properties in central London to at least twelve. Among them are industrial magnates like Lakshmi Mittal and Sri Prakash Lohia, who own sprawling mansions in the city’s most coveted neighborhoods.
Ownership of some of London’s most ultra-prestigious real estate tends to go in cycles, often linked to global economic and political changes. In the late 20th century, it was the Middle Eastern Sheikhs who sought out Mayfair as their personal playground. A few decades earlier, the turn of the 20th century saw Russian oligarchs flooding into the city with large-scale property investments.
But now, as we approach the 2020s, a new generation of wealthy buyers has shifted its focus to London. Indian billionaires, flush with wealth from a rapidly expanding economy and successful global enterprises, have taken the baton in what seems to be a new chapter for London’s luxury property market.
During the pandemic, many High Net Worth Individuals (HNWI) in India opted to consolidate their investments at home. With uncertainty surrounding the global economy and political instability in several parts of the world, many Indian billionaires turned to domestic markets as a safe haven. However, with the world now starting to recover, many of these ultra-wealthy individuals are venturing back into global markets, and the United Kingdom has emerged as one of their most popular destinations.
The UK has long been seen as a stable and attractive option for high-net-worth investors, not just due to its political stability but also because of its thriving business environment, high-quality education institutions, and lifestyle offerings. The allure of London’s prime real estate market is undeniable, and it is this appeal that has led to a rise in property acquisitions by Indian billionaires.
While the UK is a primary focus, other regions like the UAE and the United States have also witnessed a surge in interest from Indian HNWIs, but the prominence of London remains unmatched. For many, purchasing a luxury home in London isn’t just about having a place to stay. Some see it as an investment opportunity, while others view it as a stepping stone to secure citizenship or permanent residency. For many others, it’s a way to provide their children with the best educational opportunities available.
Adar Poonawalla’s purchase of Aberconway House is particularly significant given his wealth and the global success of his company, the Serum Institute of India. The Serum Institute, founded by Adar’s father, Cyrus Poonawalla, in 1966, has become one of the most important pharmaceutical manufacturers in the world. The institute was responsible for producing India’s most crucial pandemic vaccine, Covishield, which played a key role in India’s response to COVID-19.
Under Adar Poonawalla’s leadership, Serum Institute has expanded its production capabilities and diversified its vaccine portfolio, saving tens of millions of lives. Having taken over the reins of the company in 2011, Adar has successfully steered Serum Institute to become the world’s largest vaccine producer by volume. This financial success has undoubtedly contributed to his personal wealth, and with it, his ability to make high-end property investments, such as the acquisition of Aberconway House.
The transaction itself is notable for another reason. While Adar initially rented Aberconway House in 2021, he ultimately made the decision to purchase it outright from Polish heiress Dominika Kulczyk. This marks a new chapter in his life and career. It also signifies his confidence in both the global property market and his own financial position, especially as his fortune continues to grow thanks to the success of Serum Institute.
As we look ahead to 2024, it’s reasonable to expect that we’ll continue to see a steady influx of Indian wealth into the UK’s property market. With more prime London real estate set to go on the market, Indian billionaires will undoubtedly be eyeing some of the city’s most coveted properties.
A prime example of such a property is The Holme, an extraordinary mansion located in Regent’s Park. This remarkable property, which is currently on sale for £250 million, has been on the market since last February. Known for its opulent design and resemblance to the White House in Washington, DC, The Holme boasts 40 bedrooms, eight garages, a tennis court, a sauna, a whirlpool, and a grand dining room. In addition, the mansion is surrounded by an ornamental lake and four acres of meticulously landscaped gardens. While the asking price remains high, it is likely that savvy buyers may negotiate a discount, given the property’s long time on the market.
The maintenance costs of such an estate, however, are not to be underestimated. With its vast size and luxury amenities, owning The Holme would come with hundreds of thousands of pounds in upkeep costs every year. For the ultra-wealthy buyers, though, these expenses are merely a small price to pay for owning one of London’s most prestigious homes.
The increasing prominence of Indian billionaires in London’s real estate market represents a broader shift in global wealth distribution. While traditionally, Middle Eastern and Russian buyers dominated the luxury property scene in London, Indian investors have now firmly secured their place among the elites. The pattern of wealth being directed toward London is likely to continue as India’s economic growth shows no signs of slowing down.
Indian billionaires are using London as a platform to further consolidate their wealth, secure assets that can be passed down to future generations, and maintain a strong presence on the global stage. Their purchases of multi-million-pound properties speak to both the continued allure of London as a global hub and the growing influence of Indian billionaires within the city.
Moreover, these purchases are not only about the properties themselves but also about solidifying their legacy and positioning themselves as part of London’s storied tradition of elite property ownership. From Mayfair to Regent’s Park, the rise of Indian billionaires in the city is contributing to the reshaping of London’s property landscape.
As we move into 2024, one thing is certain: Indian wealth will continue to play a major role in shaping the future of London’s luxury property market.
Dinesh Dhamija founded, built and sold online travel agency ebookers, before serving as a Member of the European Parliament. His latest book, The Indian Century, will be out soon.
