With the evolving realty market of India, the demand for luxury homes is increasing. India is seen as an attractive market to invest in by realtors. Top developers like Nagpur Builders, Modi Builders, Subishi developers, etc are focusing on developing luxury apartments, penthouses and villas in gated communities with spectacular designs and world-class amenities. Endeavoring to upgrade the living standard of people, some realtors have gone as far as launching ultra-luxury housing projects.
Some of the major driving factors of the luxury market sales in India are as follows:
High net-worth individuals
India is one of the fastest developing countries and the growing economic power will undoubtedly be followed by increase in ultra-high net worth individuals. Having already been exposed to the world-class facilities, they would want better housing that meets their expectations. The rise in HNI and India’s growing economy leave high hopes for the luxury housing segment.
The real estate act, RERA, which was introduced in 2017, has contributed greatly in stabilising the market. Experts at Modi Builders review that this has brought more transparency and uniformity in the market thus bolstering the confidence of buyers.
A lot of Non-resident and wealthy Indians are making a comeback in the real estate market, bringing uptick in the luxury homes’ sales. They either invest in luxury homes for good ROI or for personal use. However, Anuj Puri, the chairman of ANAROCK said,
“After a prolonged wait and watch period post the recent reformatory changes in the Indian real estate market, the trend is now decidedly skewed towards personal use.”
Owing to these factors, luxury housing segment has witnessed increase in sales. Property consultant ANAROCK said that the sales of luxury housing priced over Rs 1.5 crore have improved and doubled to around 16,100 units in the first half of 2019 across seven cities including Delhi-NCR, Hyderabad, Pune, Mumbai, Chennai, Kolkata and Bengaluru.
The affordable and mid-segment housing sectors dominated the overall housing supply in the first half of 2019. However, the luxury housing segment also witnessed a major revival in its sales. According to the report, the unsold luxury housing inventories have declined to around 86,430 units at the end of June quarter.
Puri said that in sharp contrast to the trend that had been seen in previous years when it was primarily investors who had driven demand in luxury housing, this segment has almost been completely end-user driven today.