By Pooja Mahimkar
The mid- and high-end luxury real estate segments are experiencing strong post-covid-19 growth. According to a survey conducted by India Sotheby’s International Realty, 89% of respondents who want to invest in real estate will do so within the next two years. This percentage only concerns high net worth individuals (HNI) who will invest in residential real estate while the others will invest in commercial real estate.
Is luxury affordable?
While we have seen the government push for affordable housing, there has been a particular increase in demand in the luxury segment. Motivation is money, says Chetan Patel, the director of one of the country’s leading real estate companies, adding: “Covid-19 has proven to be a blessing in disguise for residential real estate, and demand for luxury homes, in particular, has peaked across demographics. One of the main drivers of demand in the luxury segment is low interest rates; buyers can stretch their budget by adding an additional loan amount, but with a very affordable price NDE. After covid-19, more and more consumers started to prefer projects with best-in-class equipment, which are slightly more expensive than a stand-alone project. Buyers of luxury real estate tend to be very detail oriented. With the various government initiatives, there has been more transparency in the real estate sector.
A matter of convenience
Sometimes the luxury is that slight but important distinction between a “normal” and a “premium” project, National Vice President, NAREDCO, Niranjan Hiranandani says, “New-age homebuyers favor the development of townships that provide a holistic living experience with a top-notch social fabric, community living, good civic infrastructure, proximity to daily amenities and a walkable option to the work with accessibility to office spaces.
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Boman Irani, President-elect, CREDAI-National, says, “We generally consider Rs 1 to Rs 3 crore as an aspiration; there are higher segments, but overall there is an explosion in this market segment. The main reasons for these explosions are as follows: incomes have increased (thanks to the restoration of wages and also since the pandemic confined us to our homes, savings have also increased as expenses have fallen). In addition, many had invested in the stock market and had obtained excellent returns, which they then diverted to the purchase of a house. The buyer in the luxury segment is well educated; he understands what he wants; for example, location is very important to this buyer and is a non-negotiable factor. Buyers in this segment are looking for hassle-free, long-term maintenance and facility management services that address back-end issues. »
Innovation drives demand
Although the luxury housing segment has done well, many like Patel believe that this should not make developers complacent, but rather that they should invest in research and methodology of what exactly works, he says, “the HNI and the rich Non-Resident Indians (NRI) have invested in the luxury market. Luxury real estate calls for creativity and a thorough understanding of the buyer’s taste and preferences. The developers have always been careful and provided the necessary environment for their potential buyers. A hybrid lifestyle blend with fitness, leisure, experience and entertainment all in one place, reducing reliance on outside club memberships, fitness centers etc. . However, the Indian luxury segment is still in a growth phase; we can expect more innovation and services in the future.
— Times property