- Date : 23/06/2023
- Read: 3 mins
The enduring allure of luxury real estate in India is defying economic uncertainties. Explore the factors driving high demand and the promise it holds for investors and homeowners.
- Luxury housing defies market trends
- Explore the resurgence of luxury homes post-pandemic
- Non-resident Indians driving market growth
- Growing preference for bigger homes and spacious residences.
Luxury real estate has emerged as a robust and thriving sector, defying the challenges faced by other residential categories. Even amidst economic uncertainties and crises, luxury housing continues to experience strong demand.
Luxury real estate has undergone a notable transformation in recent years, offering luxury homes in various price categories. From properties priced at Rs 1.5 crore and above, luxury real estate caters to the discerning needs and preferences of the elite home-buying class. These options have attracted millennials, high-net-worth individuals (HNIs), start-up founders, entrepreneurs, and business-class wealthy individuals.
Here are the underlying reasons:
1. Post-pandemic resurgence
The aftermath of the pandemic witnessed a remarkable resurgence of luxury homes. While other segments experienced a contraction in end-user demand, luxury housing stood out as a trendsetter, showcasing its resilience in the face of adversity. The positive momentum gained post-pandemic has been a significant contributing factor to the sustained demand for luxury real estate.
2. NRIs as investors
The expansion of uber-luxury residential options and the depreciation of the Indian rupee have tempted non-resident Indians (NRIs) to invest in luxury real estate in India. NRIs bring with them readily disposable income, inherited generational wealth, investment capacity, and market cognisance, making luxury real estate a favourable investment option. Their interest in luxury homes further strengthens the market and contributes to sustained demand.
3. Luxury Housing Powerhouse: National Capital Region (NCR)
The NCR, particularly Gurugram, has emerged as a stronghold in the luxury real estate market. Anarock's recent report revealed a notable 10% increase in housing sales in Gurugram during the Jan-March 2023 period, primarily driven by the strong demand for luxury homes. Notably, Independent Floors and Plotted Developments have been the driving forces behind the surge in luxury real estate demand in Gurugram, offering a mix of privacy, individuality, and opportunities for voluntary socialising.
Current sentiment surveys highlight an increasing demand for larger homes, with 42% of participants expressing a preference for settling in 3BHK residences and 6% seeking homes larger than 3BHKs. Developers have also recognised the importance of incorporating wellness features, including amenities for yoga and meditation, fitness centres, clubs, and dedicated rooms for mental wellness, to appeal to buyers when planning long-term settlements in luxury homes.
Luxury real estate continues to thrive, unaffected by economic uncertainties and crises. It presents a prudent investment opportunity, offering high returns on investment, asset consolidation, and a luxurious lifestyle. The future of luxury real estate appears promising, with the market poised for further growth and new offerings catering to the high-end segment.