The allure of luxury housing has not waned over the years; instead, it has evolved into an exclusive trend that is reshaping India’s real estate landscape. The onset of the COVID-19 pandemic further underscored the significance of owning a spacious home, resulting in a surge in demand for opulent residences.
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According to a recent report by CBRE, the luxury housing sector has exhibited remarkable resilience, marking an astonishing 130% year-on-year increase in sales during the first half of 2023. This surge is evident in the sale of a staggering 6,900 units compared to 3,000 units during the corresponding period in the previous year.
The modern homeowner’s requisites have expanded beyond the conventional, giving rise to an era where elegant designs, intelligent technological solutions, serviced apartments, themed complexes, and lavish amenities hold paramount importance. This evolving panorama is driven by rapid urbanisation, job migrations, and the aspirational lifestyle embraced by the contemporary buyer.
Notably, the millennial and Gen Z segments are making a significant foray into luxury housing, driven by factors such as higher disposable income, dual earning households, an upgraded lifestyle, and an inherent desire for opulence.
Real Estate & High Net Worth Individuals
India’s socio-economic landscape has undergone a remarkable transformation, with Ultra High Net Worth Individuals (UHNIs), High Net Worth Individuals (HNIs) perceiving real estate as an astute investment avenue. This shift is underpinned by factors such as disposable income, a longing for world-class living, and the allure of income-generating long-term assets.
Notably, India Sotheby’s International Realty’s ‘Luxury Outlook Survey 2023’ reveals that HNIs and UHNIs are contemplating property investments in the price range of Rs 4 to 10 crore, with a notable 33% expressing willingness to exceed the Rs 10 crore threshold for the right property.
NRI Factor
The surge in luxury housing can be attributed in part to Non-Resident Indian (NRI) buyers who recognise the burgeoning Indian real estate market’s potential. Quality infrastructure, comprehensive city development, increased transparency through technology, emulation of international housing standards, tax benefits, substantial appreciation, and attractive rental prospects contribute to the appeal of luxury homes. This growing interest from NRIs has significantly contributed to the sector’s upward trajectory.
Luxury Beyond Big Cities
Luxury housing is no longer confined to metropolitan cities; it has proliferated into Tier 1 and Tier 2 cities, bestowing them with the coveted premium home tag. Noteworthy metros such as Mumbai, Pune, Delhi-NCR, Bangalore, Kolkata, and Hyderabad are at the forefront of the demand for luxury housing.
Developers have risen to the occasion by redefining luxury housing through their opulent offerings, aligning with the discerning preferences of the modern buyer.
The pursuit of perfection is evident in the appeal of holiday villas, vacation homes, and resort-style living, all encapsulated within theme projects that cater to the resident’s desires.
Leveraging technology to captivate buyers’ attention and forging partnerships with reputable brands have become instrumental in elevating the lavish living experience.
A prominent facet of the luxury real estate landscape is the existence of luxury bungalows and villas within gated communities. These exclusive invitation-only projects have gained traction among UHNIs and HNIs, serving as both vacation getaways and family retreats.
Unique concepts like fractional ownership, where multiple stakeholders invest in a holiday property maintained by a third party, offer a distinct advantage to buyers, investors, and developers, thereby fostering a thriving luxury real estate market.
Future Outlook
The forecast for luxury housing in India remains promising, with a remarkable 61% of UHNIs and HNIs expressing a strong intent to invest in luxury real estate during 2023-24, as per India Sotheby’s International Realty’s annual ‘Luxury Outlook Survey 2023’. This unwavering demand underscores the luxury housing segment’s pivotal role in India’s real estate market, contributing significantly to the premium category and reshaping the paradigm of opulent living.
-The author is Founder & CEO, PropertyPistol. Views expressed are personal.
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