What exactly is luxury homes or luxury housing? Usually property developers now tend to label a project upwards of Rs.1 crore as a luxury project, whereas it can only be loosely defined as such. Real luxury would mean a swank home in a premium zone in the heart of a metro – like Worli or Napean Sea Road in Mumbai or Lodhi Road or Golf Links in Delhi. There’s no doubt about the fact that the realty market is emerging from its darkest period. Property experts say that a look at recent overall pan – india sales revels that it is affordable residential homes, in the price bracket of Rs. 25 lakh to Rs 40 lakh, which has accounted for more than 85 per cent of property sales.
Interestingly enough, these figures are making developers feel positive about the luxury sector – which has not seen many takers of late. It is believed that out of the total demand for residential property in India, almost 9 per cent is for properties carrying a price tag of more than Rs. 1 crore.
Since the gold collar generation continues to earn handsome salaries in jobs or businesses, it will always be on the hunt for luxury consumable items and luxury homes. As the Indian economy is doing much better than other major global economies, this generation is expected to do better in the times ahead, which would in turn lead to an increased demand for luxury homes in India.
The latest development in the Indian residential property market is rather noteworthy – luxury homes or luxury housing (in the Rs 80 lakh to Rs.1 crore plus bracket) which had taken an extreme backseat during the slowdown phase, is also making a convincing comeback. Many large builders are concentrating on getting volumes in this segment.
Though business for luxury homes in India has been relatively slow in the current scenario, the demand still exists. Business and industry magnates, top management executives, people associated with the entertainment industry, high net-worth individuals and NRIs still express interest in such projects.
Luxury Homes – Mixing it Wisely
A fact one has to accept is that luxury homes don’t have many people clamouring to move in. Real Estate Builders say potential luxury home buyers are still sitting on the fence on the lookout for good deals in the market.
This, of course, makes one wonder if the developers are coming up with more supply in a segment that hardly has any absorption capacity. To determine the next course of the market, say property experts, what the property developers need to do is offer a wise mix of mid-end and luxury property projects.
Luxury homes still lives in India
In the recent months, Mumbai has seen more projects launched in this projects launched in this segment than Delhi. Delhi NCR, however, is seeing a lot of supply and pent-up demand in the Rs.20 lakh to Rs.1crore price range. “The upper end of this segment has a large market, driven by the aspiration driven mid to senior level corporate executives.
About premium properties or luxury homes, though there are a number of projects, in Delhi NCR. These are typically small and are sold quietly and privately. In mumbai, luxury projects are large developments, which are very visible when launched through large-scale marketing activities. Outside of Delhi, Gurgaon, Noida and adjoining areas are predominantly seeing action in the Rs.20 lakh to Rs.1 crore price range.
Though affordable housing is the need of the hour, there will always be a sustained demand for luxury homes in india. With more individuals moving up the corporate ladder, increased opportunities in India leading to an influx of the NRI populace and a perennial need for aspiration-driven living luxury homes is here to stay.
Tags: high net worth individuals, indian economy, lodhi road, luxury homes in india, napean, period property, property developers, property in india, realty market, residential property market