Indian real estate market has evolved from being a market obsessive about a home with a location to a new and vibrant concept of branded homes. Luxury housing concept refers to houses which are more than $300,000 and are approximately 2000 sq. feet in area as the starting size of apartments, going onto much larger sizes depending on the category of luxury housing that the project is looking at offering. At present, it is the fastest growing segment in residential housing and studies suggest that in order to cater to this growth in demand, India would require 1.5 million luxury homes over the next 15 years.
In the last decade, rapid globalisation has amplified the employment opportunities nationally and income earned in the uppermost level is significantly high. Individuals from this segment are exposed to world-class amenities, are usually well-read, well-travelled, and thus, have an idea of what they want as a reflection of their taste and lifestyle. This has acted as a catalyst and paved the way for real estate developers to get high-incentives while catering to the housing needs of the uber rich of the city, who are happy to pay for a luxurious property that would act as an indicator of their social and financial standing.
Indian real estate market has recently witnessed a surge in the sale of bespoke properties due to an emerging concept of owning more than one luxury property by the upper segments of society. This sudden rise in branded homes is due to an impressive second highest growth of HNIs in India's population.
Investment in premium properties helps in further diversifying the assets of an individual and is mainly motivated by a variety of reasons that range from a practical approach tending towards a passionate inclination or even investment purposes. Owning a second or third house is one of the most common aspirations for the well-heeled, 79 per cent of them own at least two properties and the balance 53 per cent usually invest in three or more.
International developers are also entering the Indian market to build customised possessions for the city's wealthy who are at par-with and would surpass their peers to cash in on this luxury-lifestyle sector. These days' developers are also catering to the rising aspirations of the affluent young professionals with their premium constructions.
Definition of luxury differs significantly from one individual to another, however, for any property to qualify as a 'luxurious proposition' there are certain defined characteristics that make it a home worth millions of dollars.
Location being the prime factor" Outstanding infrastructure, trouble-free access to nearby locations, status of people living in vicinity etc. play an important role. Properties on golf courses, beaches, mountain tops are all time favourite developments
" According to a study, top locations in luxury segments in India are as follows:
" Inclination towards environment-friendly projects
More and more individuals are demanding homes that would have less impact or no-impact on the eco-system. Green Homes which use eco-friendly/recycled materials for construction, more windows to allow natural light, use of solar energy and bio-gas plants in the community are few features that are looked upon while making a purchase.
" Creation of intelligent living spaces
Use of high-tech built-in features that allow you to lock-unlock doors, turn-on the lights, air-conditioners, etc., with a click of your phone , superfast lifts and security features such as limited access cards always makes a mark
" Additional features
" Collaboration with international designers and brands to create a statement
" Personalised space for recreational activities
" Spacious rooms with latest fittings
" Clubhouse and pool at a higher floor with large viewing decks and F&B facilities
" Extensive use of glass on exteriors, floor to ceiling windows for maximum panoramic views
The future of luxury residential real estate in India looks promising and positive. With markets being indicative of a trend that suggests that this segment will gain in value faster than traditional real estate and its greater appeal to UHNW individuals with inherited wealth as well as its reputation as a safe asset, luxury residential real estate is set to see more and more growth in demand. But presently, the luxury real estate market is going through a slow down due to an oversupply situation. HNIs and NRIs are skeptical about the investment in this sector due to global economic slowdown. However, a smart buyer would certainly make good use of this time, as the property prices are at an all time-low, which would definitely rise in the long run.
