A ₹1,000-crore trophy bungalow is the latest conversation starter in central Delhi’s rarefied real estate circles. The sprawling 3.2-acre estate on Bhagwan Das Road, owned by Maharaja Manujendra Shah of Tehri Garhwal, has drawn interest from a Delhi-based businessman with interests in the food and beverage sector. The same buyer was also in advanced discussions to acquire Jawaharlal Nehru’s first official residence for almost ₹1,111 crore, a deal that, if sealed, would reset price expectations in the capital’s ultra-luxury market.
Should even one of these transactions close, it would rank among the largest residential deals Delhi has ever seen. Until now, marquee bungalow sales have largely hovered in the ₹500–600 crore range, with little precedent beyond that. A ₹1,000-crore-plus deal would not just break records, it would signal a new pricing era for the capital’s trophy homes, say real estate experts.
Yet Delhi’s luxury market operates under constraints very different from Mumbai’s freewheeling skyline. In Lutyens’ Delhi, strict redevelopment norms preserve the character of the neighbourhood, while height restrictions, typically capped at four storeys outside the Lutyens’ Bungalow Zone, limit vertical expansion. Even on expansive plots, the ability to fully utilise FAR (Floor Area Ratio) is curtailed. The result is that marquee estates that command eye-popping ticket sizes, but remain defined more by legacy, land and location than by redevelopment upside, they say.
What we know so far about the Maharaja Manujendra Shah of Tehri Garhwal bungalow deal
Both properties, Jawaharlal Nehru’s first official bungalow at 17, Motilal Nehru Road, and 5, Bhagwan Dass Road, that the Delhi-based entrepreneur is looking to acquire, are currently leasehold, people familiar with the deal told HT Real Estate.
As part of the transaction process for the Central Delhi property, a leading law firm acting for the prospective buyer has issued a public notice, a customary step in the final stages of property due diligence. The notice calls upon any individual or entity with a claim or interest in the Bhagwan Das Road property to come forward and submit supporting documents.
The public notice issued mentions that the Bhagwan Dass Road property measures 3.2 acres (approximately 12949.94 sq m) and that the current owner is Manujendra Shah.
According to people aware of the development, a term sheet has been signed for the Bhagwan Dass Road property, while an agreement to buy has been executed for the Motilal Nehru Road bungalow in the Lutyens’ Bungalow Zone.
Sources added that the valuation of the Bhagwan Dass Road estate could be approximately ₹1000 crore.
The seller of the Bhagwan Dass Road property could be reached for a comment.
Experts said that the conversion of leasehold properties to freehold in Lutyens’ Delhi (LBZ) has been effectively on pause since 2022. Most LBZ properties are held on government leases (typically from the Land & Development Office, L&DO, under the Ministry of Housing and Urban Affairs).
If concluded, the two ₹1,000-crore deals could become the costliest real estate transactions in Delhi
“If concluded, these two proposed deals could become the highest-value residential transactions ever recorded in Delhi, measured by ticket size. The previous benchmark has been in the range of 500-600 crores, and the market has not seen anything higher so far,” Shveta Jain, Managing Director and Head, Residential Services, Savills India, told HT Real Estate.
She explained that there are several large estates on the market, ranging from 1 to 3 acres, but prior to Covid-19, such properties were difficult to sell. With circle rates in these prime Lutyens’ zones at about ₹6.5 lakh per sq yard, multiplying that by the land parcel size would push valuations to levels that did not appear viable for residential use, often nearing ₹1,000 crore.
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“However, the market has since moved significantly. Smaller plots of around 500-700 sq yards have reportedly transacted at close to ₹100 crore, establishing a new pricing benchmark. Current quotes for smaller parcels are in the range of ₹17-18 lakh per sq yard. Even at the circle rate of ₹6.5 lakh per sq yard, a three-acre property is effectively valued at nearly one-third the prevailing per-yard rate for smaller plots in the same micro-market,” she said.
Can LBZ bungalows be redeveloped?
The ticket size of these bungalows may be formidable, but these estates often come with smaller built-up areas; however, the land areas are large, making up for the redevelopment limitations. Owners can demolish and rebuild, provided they comply with the Lutyens’ Bungalow Zone (LBZ) regulations on total existing built-up area, height and a few other regulations. There is no flexibility beyond the approved norms.
If even one of these transactions goes through, it could establish a new benchmark for Delhi’s ultra-luxury bungalow market. However, such estates are not easily magnetisable and are typically held as long-term trophy assets rather than income-generating properties.
“The full Floor Space Index cannot be commercially exploited, change of land use (CLU) is not permitted, and strict height caps apply. These estates are largely for end use, trophy assets sought by a select group of ultra-high-net-worth individuals who want expansive bungalows in marquee locations,” said Jain.
What is LBZ?
The Lutyens’ Bungalow Zone (LBZ) is a highly protected, low-density residential enclave in central New Delhi, designed in the early 20th century by British architect Sir Edwin Lutyens. Located along tree-lined avenues near landmarks such as India Gate, the area is defined by expansive bungalows on large plots, strict height and ground coverage caps, and stringent redevelopment controls aimed at preserving its heritage character. Governed by special regulations, LBZ properties are rare and tightly held, making them prized trophy assets.
Trophy properties in Delhi and Mumbai: Will the capital inch closer to Mumbai’s price benchmarks?
Mumbai has consistently recorded larger ticket-size deals, with transactions of ₹ 400 crore not uncommon in a single year. Delhi, by contrast, sees fewer transactions.
“However, if these proposed transactions go through, Delhi could come closer to Mumbai in terms of ticket sizes, though unlike Mumbai, redevelopment restrictions in Lutyens’ Delhi and restrictions on height (only four storeys) in non-Lutyens can impose restrictions on the ability to consume full FAR on larger plots,” Jain added.
FAR (Floor Area Ratio) is the ratio of a building’s total constructed floor area to the size of the plot on which it stands. It determines how much you are allowed to build on a piece of land.
It should be noted that in 2021, in one of the biggest property deals in Mumbai, DMart founder Radhakishan Damani and his brother Gopikishan Damani bought a ₹1,001-crore independent house in Mumbai’s posh Malabar Hill area.
According to reports, the Damani brothers had paid ₹30 crore in stamp duty (at a rate of 3%) for the 5,752 square metre (sq. m) property. The per-square-foot (sq. ft) rate for this property was around ₹1.6 lakh per sq. ft, which was unprecedented, brokers had said then, adding that the built-up area was around 60,000 sq. ft.
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In November 2025, one of the largest standalone land purchases in Mumbai, a subsidiary of luxury real estate developer ZYJ Builders and Developers, acquired the Dwarka Bungalow in Santacruz for ₹164 crore, according to documents accessed by data analytics firm Zapkey.
The property, known as Dwarka Bungalow, is situated on Linking Road, Santacruz West. Spread across 1,266.7 sq m (about 13,629 sq ft), the estate comprises a ground-plus-one structure, along with a garage and auxiliary sheds. The company paid a stamp duty of ₹9.8 crore, the document showed.
In March 2025, the Mumbai-based Kapadia family sold Laxmi Niwas, a bungalow on the upscale Nepean Sea Road with a glorious past connected to India’s independence movement, for ₹276 crore to Vageshvari Properties Private Limited, according to proptech website Zapkey.
In June 2025, Mumbai-based Gentex Merchants Pvt Ltd, a company linked to steel tycoon Lakshmi Mittal, acquired a 3,540-square-yard bungalow on APJ Abdul Kalam Road (formerly Aurangzeb Road) in Lutyens’ Delhi for ₹310 crore, marking one of the most expensive property deals of the year in the Delhi-NCR region. The bungalow, originally constructed in 1930, was owned by Yashwant Singh, popularly known as Maharaj Kumar Yashwant Singh of Alwar, and had remained with the erstwhile royal family of Alwar.
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