The luxury real estate segment has been unbridled with the realty market been slow-paced over the past few years in India. The mid-level properties might have seen a roadblock with the latest GST cut-rate, but the developers suspect that the demand will gain momentum in the future.
Now, what exactly induces luxury apartment’s purchases? Answers the experts are 4 basic quadrants such as location, amenities, the niche provided and the price. Price, however, pays less consideration taking into account that the buyers in the segment are characterized by affluence and wealth.
One of the major challenges in the real estate industry today is the huge surplus of unsold inventory. But the limited quantity of construction in the high-end segment has made luxury apartments less prone to remaining unoccupied. “People stopped buying for a very short term, looking for a clarification on GST and that is the only reason why the demand was low and since now the clarification has come and rates are reduced, it has been a booster to the luxury demand,” said Pankaj Bansal, Director M3M, makers of the Trump Towers in Gurugram, told.
The additional benefits that come with these luxury apartments are innumerable. DB Realty, with its new luxury project in Mumbai, said that safety has been given utmost importance, and other features such as installations of video door phones, intercom connectivity, elevators with access control, and earthquake-resistant design have been also supplemented. Other than that are the state-of-house amenities that come along with high-end investment.
Also, affordable housing is said to gain traction in 2019. Nahar group, another real estate mogul dealing in luxury and residential segment credited the affordable houses as a driving force for sales in the forthcoming year. “The year 2018 witnessed traction towards affordable housing projects, and the sales of these projects are expected to further gain drift in 2019.”
The introduction of RERA has seemed to compliment the realty market, especially benefitting the luxury segment. Developers such as Kalpataru Real Estate, ABA Corp are set to launch new luxury projects in Delhi NCR providing luxurious living with grand design, and stunning views.
Not just the high-end segment, builders are also keen on investing and creating small, composite affordable houses seeing the growing urbanization, congestion and the demands of a budget homeowner.