Here’s why Bollywood stars invest in residential and commercial real estate

According to real estate professionals, many Bollywood celebrities like Amitabh Bachchan, Aryan Khan, and others purchase real estate for either investment purposes or emotional attachments.

In Mumbai, numerous Bollywood celebrities have made headlines by purchasing apartments in upscale projects. Areas like Bandra, Khar, Lokhandwala in Andheri, and Worli are particularly popular among film stars for real estate investments. These celebrities have varied reasons for such acquisitions, ranging from financial investments, rental income prospects, personal use, to sentimental value where a property holds significance due to the actor’s emotional attachment.

According to real estate professionals, many Bollywood celebrities prefer to put their money into real estate either during the project’s initial stages or when the property is nearing completion. These investments serve various purposes, such as personal occupancy, diversifying their investment portfolio, and availing tax benefits.

A recent project by Oberoi Realty gained significant attention when news surfaced that Amitabh Bachchan and his son Abhishek Bachchan acquired 10 apartments valued at ₹24.95 crore in the Mulund area of Mumbai within the Oberoi Eternia project.

In Mumbai, the trend extends beyond residential real estate developments to encompass commercial properties as well. The Signature building in the Andheri region of the city boasts ownership by various Bollywood celebrities including Amitabh Bachchan, Manoj Bajpayee, Sara Ali Khan, Kartik Aaryan, and Ajay Devgn for their commercial spaces.

SquareYards, a real estate consulting firm, has gathered data showing that Bollywood celebrities tend to favor residential and commercial real estate as their investment choices. Despite diversifying their portfolios, stars predominantly gravitate towards residential properties, accounting for 62% of their investments. Commercial real estate is also on the rise among celebrities, who are exploring various properties in strategic micro-markets to secure steady rental incomes, as per SquareYards’ findings.

According to data gathered by SquareYards, the top real estate investors in the Bollywood industry from 2020 to 2024 were Amitabh Bachchan with a whopping ₹194 crore, Jhanvi Kapoor with ₹169 crore, Ranveer Singh, Deepika Padukone, and their family with ₹156 crore, Ajay Devgn and Kajol with ₹110 crore, and Shahid Kapoor with ₹59 crore.

Square Yards provided data indicating that in 2017, apartment prices at Oberoi 360 West were recorded at 78,000 per sq ft, coinciding with the project’s RERA registration. Notably, the rate stood at approximately ₹1.37 lakh per sq ft when Shahid Kapoor made his purchase within the development.

Investing in the Eternia project, Amitabh and Abhishek Bachchan made their move when the market rate stood at ₹30,700 per sq ft. The project obtained its RERA registration back in August 2017 at a price of approximately ₹21,000 per sq ft. According to Square Yards, price fluctuations can occur due to various factors, including location and property-specific elements. Moreover, there might be a delay between property acquisition and registration with the IGR, leading to disparities between recorded property values and market rates for the month.

Bollywood Celebrities’ Real Estate Investments

Amitabh Bachchan, the Bollywood legend, along with his son Abhishek, have recently acquired a total of 10 residences in Oberoi Realty’s Eternia located in Mulund West, amounting to a whopping sum of ₹24,94,82,640 (₹24.95 crore). This new addition has expanded their real estate holdings for the year 2024 to exceed ₹100 crore. Over the span of the past five years, from 2020 to 2024, this father-son pair has made notable property investments all over India totaling approximately ₹220 crore. Simultaneously, they have divested from a few properties, including ones acquired before 2020, like apartments in Oberoi 360 West and their ancestral estate in Gulmohar Park, South Delhi.

Exploring Fresh Investment Opportunities

Amitabh Bachchan, hailing from Allahabad, has diversified his real estate portfolio with the acquisition of a residential property in Ayodhya and Alibaug from The House of Abhinandan Lodha, investing a hefty sum of ₹14.5 crore.

Abhinandan Lodha, the company’s chairman, clarified to HT in a previous interview that the land acquisition made by Bollywood celebrities, such as Amitabh Bachchan in Ayodhya and Alibaug, were genuine transactions and not endorsements. He emphasized that they do not seek endorsements and highlighted that Amitabh Bachchan’s purchase was publicly recorded at the registrar’s office, ensuring transparency without any quasi-endorsements involved.

Acquisition of real estate by Bollywood celebrities

Kriti Sanon, the Bollywood actress, recently acquired a 2,000-square-foot piece of land in Alibaug, a popular second home location close to Mumbai. The purchase was made within the Sol de Alibaug development by The House of Abhinandan Lodha, according to an official statement released by the company.

Kirti Sanon shared her empowering journey of purchasing land independently, expressing her interest in Alibaug. She emphasized seeking peace, privacy, and a valuable addition to her investment portfolio in this transaction.

Properties intended for commercial use

Several Bollywood celebrities such as Karishma Kapoor, Ajay Devgn, and Amitabh Bachchan have ventured into investing in commercial real estate properties to capitalize on lucrative rental yields. Typically, the ROI on office spaces tends to surpass that of residential properties.

In recent months, numerous Bollywood celebrities have made headlines for their investments in commercial real estate in Mumbai, either through purchases or lucrative leasing deals aimed at generating substantial rental returns.

Documents obtained by Propstack revealed that Ajay Devgn rented an office in Andheri West, Mumbai for ₹9 lakh per month for a duration of five years.

Last year, Amitabh Bachchan secured four commercial units in Oshiwara for approximately ₹7 crore each and leased out the properties for an annual fee of ₹2.07 crore.

Last year, office spaces in Lotus Signature tower in Andheri West were also acquired by actors Kartik Aryan, Manoj Bajpayee, Sarah Ali Khan, and Kajol, in addition to Bachchan.

Last year, in April, Sonu Nigam acquired two commercial properties covering a total area of 5547 square feet in Andheri for ₹11.37 crore, as per documents previously disclosed by Propstack.

Propstack has made public property registration documents that reveal Kangana Ranaut, a BJP MP and prominent figure in Bollywood, has acquired an office in Mumbai’s Andheri region for a sum of ₹1.56 crore

Some boutique developers prefer selling housing units exclusively to industrialists, CEOs, or CXOs, avoiding Bollywood stars due to concerns about potential disruptions that celebrities might bring to a residential project housing multiple high-net-worth individuals.