Why is the luxury segment doing well in the Indian real estate market?
The real estate market has been in turmoil along with the overall economy. This is due to low demand and high prices and rates of interest. There is a huge pile-up of inventory, especially in metropolitan cities. However, India has seen an ever-increasing number of luxury home purchases. More and more Indians are investing in luxury homes. With an increase in the disposable income of individuals and investments by NRI’s, the luxury segment has shown steady growth.
The prices of the luxury housing sector are expected to rise in the near future. This has been seen as an opportunity by the HNI’s. They are using the slow-down in the market to their advantage. Investment in the luxury housing sector during the slow rate will bring them higher yields during the price appreciation period. As per the findings of Knight Frank’s Wealth Report 2019, the ultra-wealthy population (individuals worth USD 30 million) has increased by 4% between 2017 and 2018, in Asia. Over the next five years, a strong growth of 39% in the ultra-wealthy population is projected for India, which bodes well for the consumption of luxury residential products over the long term. Housing preferences of these customers, who seek modern environs, community living and the latest amenities, while also maintaining exclusivity and privacy of their residence form a major part of the reason behind investing in luxury real estate. A fall in the rupee last year, has also encouraged the NRI’s to invest in this sector. A fluctuating rupee and introduction of various regulations to bring in transparency and accountability are making real estate more lucrative for non-resident Indians (NRIs). An improved regulatory regime also provided greater confidence among them to invest in India.
Tech-savy homes with a high component of automation and integration of technology for home management, such as mobile app-enabled switching on and off of household appliances, drapes and security, are now increasingly becoming synonymous with luxury. Equally popular are exclusively designed residences from international designers. It is not uncommon to find apartments with branded gymnasiums, spas, salons and concierge services in Mumbai or Delhi, which are a class apart. Isprava’s luxury villas for sale in Coonoor and luxury Villas for sale in Goa are equipped with the best of amenities and bespoke designs. They host all the feature of an ideal luxurious residential property or a luxury holiday home.