India, Aug. 15 -- From Lutyens' Delhi to Mumbai's Malabar Hill and South Mumbai, old bungalows have become the crown jewels of Indian real estate, irreplaceable addresses for billionaires where heritage adds the story, scarcity creates the premium, and land drives the value.

Nearly eight decades after Independence, these marquee homes are setting benchmarks for India's ultra-luxury residential market, something Sir Edwin Lutyens could hardly have imagined when he drew up plans for New Delhi's new capital nearly a century ago. The bungalows that formed part of that city have since evolved into trophy assets commanding hundreds of crores.

Their appeal goes far beyond the structures themselves. It is the combination of scarce land, an irre...