As more individuals seek opulent living experiences, the luxury housing sector is thriving, thus offering unparalleled opportunities to investors, developers, and homebuyers alike
The demand for high-end properties has been consistently strong, with luxury homes attracting discerning buyers who seek unparalleled comfort, exclusivity, and luxurious amenities. The latest data is also testimony to this fact.
“India’s residential real estate segment continues to show boundless forward momentum and is setting unprecedented benchmarks. FY23 created a new record for highest sales volume across the top seven cities with approx. 3.79 lakh units sold, 36 per cent higher than the previous year. MMR, NCR, and Bengaluru have led from the front in terms of luxury housing uptake, but Pune is another city to watch out for. While it registered the highest growth in value terms, it also holds a nine per cent share of the luxury segment, from a negligible share in earlier years,” says Anuj Puri, chairman, Anarock Group.
Factors driving demand
There are multiple factors responsible for the robust growth. Shedding light on the same, Niranjan Hiranandani, national vice chairman, NAREDCO says:
A robust economy driving residential sales
- Spacious homes: The unprecedented Covid-19 disruption has altered the way of living perennially. Discerning homebuyers desire bigger homes from a multi-functionality and utilitarian perspective. The need for privacy and comfort has also increased as time spent in the house has grown multifold.
- Rise in disposable income: The strong performance of the Indian capital market has attracted many retail and institutional investors to join the bandwagon during Covid-19 times. This has led to a rise in disposable income, which needs to be parked in a long-term secured asset. The stable rental income followed by capital appreciation has skewed investors to buy luxury homes.
- HNIs and NRIs: The global Indian community has catapulted on economic certainties and currency depreciation events. The necessity to own a home back on native land has thus surged due to multiple favourable factors at play
Experts believe that the strong performance of the Indian economy (as compared to global economies) in the recent past has played an active role in the growth of India’s luxury real estate market. Hiranandani adds, “The economic resiliency of India is in solitude despite the influence of global recession on macroeconomics. The well-corroborated fiscal and monetary measures, ample liquidity and credit availability, favourable structural policy and the global headwinds turned favourable for Indian economic growth. The rise in disposable income, underpinned sense of owning a home, upgrading to a spacious residence, and investing in real estate as a safe bet are the pivotal factors nudging the growth of luxury housing.”
Talking about the current scenario and how the future will unfold, Vinay Rohira, sales head of a real estate group mentions, “With the country’s fiscal condition improving, it is expected that the Indian economy is set to rise at an astounding rate in the coming quarters. Furthermore, the pause in repo rate hikes is a significant factor that is driving the homebuyers to make the purchase. Therefore, over a period of time, we expect this trend to strengthen further owing to the ongoing infrastructure expansion and redevelopment of housing societies into residential apartments that offer luxury with world-class amenities. Overall, there would be no long-term impact on demand or pricing that are anticipated in the near future, as the buyer class for luxury properties is mostly unaffected by minor economic volatility.”
Homes that boast features such as outdoor areas with huge patios, outdoor kitchens, bar areas, and fire pits have gained supremacy. A glossy entrance lobby with a waiting area for guests and visitors, a well-equipped gymnasium, high-speed branded elevators, reception and concierge desk, rooftop gardens, water walls, private pools, clubhouses, decks, balconies, courtyards, home automation are some of the key features that are being provided by premium developers. New-age digital transformation tools and advanced enterprise technologies such as the Internet of Things (IoT), ERP, robotics process automation (RPA), analytics for decision-making and mobility solutions, and data science are also helping developers with negotiations, prompt assets valuation, and increasing visibility and productivity.
Therefore, even though there are concerns about financial turmoil globally, Indian real estate especially the luxury segment will continue to flourish and generate huge numbers.