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The luxury market for real estate in India has been witnessing a massive influx. For a modern buyer a luxury home is not just eye candy or a home filled with expensive items, but it is a home with amenities that resonate with their luxury lifestyles.
But it includes features like environmentally friendly products, modern technology, smart design, wellness, and comfort. For today's savvy home buyer, a home isn't just about accumulating expensive items mindlessly; it's also about the types of products they use in their homes and how those products affect their day-to-day lives. This was a major factor in why this entire segment of real estate has become such an attractive investment and continues to grow quickly during these uncertain economic times in India.
Growth in the luxury real estate market is driven by an increasing number of people with substantial disposable income, both from India and abroad. Major cities that have demand for luxury real estate are Mumbai, Delhi-NCR and Bangalore but cities that have emerging economies (like Pune and Hyderabad for instance) are becoming more popular for luxury real estate buyers.As an example, the number of Non-Resident Indians (NRI) looking at the Indian real estate market is increasing rapidly due mainly to their strong connection to India and need for properties that are ready to occupy now.
This combination of both local buyers and overseas buyers demonstrates the strength and attractiveness of this part of the overall residential real estate market as both an indicator of wealth and status as well as a great way to invest in the future.
What exactly is luxury housing? Luxury housing refers to premium or high-end property, which is specifically designed for comfort and exclusivity. It is not just any expensive house but has features that include world-class facilities like superior interior design and modern amenities and is in a prime location.
Luxury homes can be villas, flats, apartments, large mansions, bungalows, condos, etc. With increased income and double earnings, more and more people are opting for properties that offer both class and convenience and have facilities like high-security systems, private pools, private elevators, clubhouses, gyms, clubs, etc.
And they are not just a status symbol but can also be a great investment due to their high appreciation value. Kanwar Pal Singh, Founder, Investor Home Solutions, shares insights on why there is a surge in the luxury home market.Who is buying luxury homes?The buyer community for luxury residences within India is inclusive. Specifically, the HNI's (High Net Worth Individuals) and UHNWI's (Ultra High Net Worth Individuals), (b) Non-Resident Indians, and (c) what could be classified as first-time luxury buyers (the latter being comprised of primarily young professionals/young families). HNIs/UHNWIs: The HNIs & UHNWIs are typically entrepreneurs and business people, as well as senior corporate executives seeking residences as status symbols, private locations, and support for a lifestyle centered on wellness objectives. NRIs: Buyers who have had overseas experience are seeking properties that match the standards found in the global luxury marketplace, that offer luxury amenities, and that offer investment opportunities with significant appreciation potential. First-Time Luxury Buyers: Young professionals/young families increasingly seek larger residences that are of high quality and support modern work and lifestyle needs.
Factors affecting the current demandSeveral factors are influencing the increased demand for luxury residences in India:
- Changing Lifestyle: The market has changed to require a residence that offers large landscaped gardens/open amenity space, wellness spaces (fitness centers, yoga decks, spas, etc.). Designers are creating many of the new developments containing work-from-home space while providing features that improve/supplement the homeowner’s physical and mental wellness.
- Investment Potential: Luxury residences represent a solid investment opportunity, where the owner obtains both a luxury lifestyle and attainable asset value appreciation.
- Quality and Branding: Consumers are looking for developments from established developers, especially those who are collaborating with international architects or luxury brands. Luxury brands offer a lifestyle experience, quality, and resale value.
- Infrastructure and Connectivity: Improved infrastructure and connectivity are also making the luxury residential areas more popular.
- Investment Potential: Domestic or global investors will be drawn to luxury property because of the favorable investment climate they will find in the luxury housing market generally.
Luxury market trendsThe defining currents of the luxury residential real estate market today:
- New energy-efficient systems and buildings are being developed and marketed as sustainable and "green."
- High-end housing is emerging as smart and comfortable with the detailed addition of automation and artificial intelligence technology that promotes wellness for the occupant through improved air quality and access to circadian lighting.
- Luxury homes that have been designed to include a focus on wellness and provide spaces for privacy, individualism and holistic living by incorporating fitness, meditation, and recreational spaces into the design.
- Livable, luxurious homes that have been built in partnership with internationally recognized luxury brands to provide buyers with brand-name status, individualized services, and a way of living that meets international standards.
The future of luxury housing in India is bright. High disposable income, opportunities to improve one's lifestyle, and high demand for luxury housing from both inside and outside of India will continue to contribute to the growth of the luxury housing market.
Sustainability and technology adoption will continue to represent the key drivers of the market, as will the branding of projects. How these key drivers develop over the next several years will predict this new phase of luxury housing.
The development of luxury housing in India marks a shift from conventional definitions of luxury to newer interpretations of luxury associated with sustainable, intelligent living. For an end user, a luxury home is more than just a place to live; it represents a way of life, exemplifying class, elegance, and societal value.
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