Gurugram, Haryana, India
Surging interest in the luxury housing has been one of the most remarkable developments in the post-pandemic world. From the need of a larger home and making most of life to favourable rupee dollar ratio leading to an increase in investments by the NRIs and startup founders looking to save on capital gains tax, the reasons are many. Developers of the luxury housing projects also launched new properties, a few in Delhi and Gurugram but most on the peripheral areas of NCR such as Noida, Sohna Road and Dwarka Expressway.
Says Amarjit Bakshi, CMD, Central Park, “There has been a certain shift within the preference. Almost every strategically positioned ultra-luxurious residential project has been sold out. Consumer especially in the post-pandemic era has become extremely discerning. They are not content just with the luxurious interiors but also expect a whole lot of high-end amenities and facilities within the project complex. Today’s buyers are more inclined towards luxury properties, especially when developed by a brand with an impeccable reputation and delivery track record.”
“One of the key factors for the rise of the luxury segment is that post-pandemic lot of families wanted to upgrade their lifestyle and move into bigger and better homes. They had also realised the importance of a large space, and it led to a surge in luxury home purchases. Simultaneously in the last 8-10 years, home supply has been largely subdued, and therefore the price movement had not taken place. But now things are changing. Prices are on the way up, consumption in the real estate sector is also going up, and end-users are massively investing in this segment. The low interest rates regime due to Covid also aided this sector. As India is now moving ahead on a strong growth trajectory and is looking at double-digit growth, it is going to add further momentum to the luxury segment.” said Nayan Raheja, Raheja Developers.
According to a recent estimate, the sale in the premium and luxury housing, especially after the pandemic segment had surpassed affordable housing by at least one per cent. This momentum is expected to sustain till the end of the last quarter of this FY, especially in the top realty hubs of India like Mumbai, Delhi, Gurugram and Noida.
“Moreover, as the construction of many new projects stalled due to the pandemic picked up it not kept the property prices in check but also provided the buyers with options to choose from. The luxury project developers seeing this surge in interest announced new projects in different parts of NCR such as Greater Noida, Noida, Gurugram, Sohna Road and Dwarka Expressway in NCR. It has been estimated that new launches in the luxury segment – in the price range of over 1.5 Cr have witnessed a 230% increase this year,” opines Amit Modi, President CREDAI-Western U.P.
All these developments augured well for the luxury segment. According to a recent report, apartments with 2,500 sq. ft.+ area have emerged as one of the most preferred options. NRI investments turned out to be another key factor. For NRIs a favourable dollar- rupee ratio made investing in realty in India a sound proposition. In 2021 the NRIs accounted for $13.1 billion investments in the real estate market. It is pegged to increase at least by 12% in 2022.
“But the surge in luxury property purchases by the HNIs was not just confined to the NRIs. Startup founders while liquidating their stakes also turned towards luxury properties. For them it wasn’t just an avenue to save capital gains tax but with the prices at a recent historic low buying luxury properties also made for sound investment proposition. The emergence of new luxury hubs in Noida, Gurugram, Sohna Road and Dwarka Expressway along with options in the shape of apartments, villas and farmhouses also provided them with a wide range of choice,” says Dev Bidhan, Director, ElitePRO.
“The momentum that the luxury housing segment has recently witnessed illustrates that buyers today expect not just top-notch homes but also a project that provides them premium amenities. It provides new opportunities for real estate companies to come up with residential projects that fulfil the expectations of high-end home buyers. A tentative list would include a well-connected location, impeccable construction quality, high-class facilities, best-in-class amenities, luxury concierge service and wellness facilities, along with state-of-the-art security, a pro-active maintenance team, and a developer with a lineage of luxury projects,” said Yukti Nagpal, Director, Gulshan Group.
Amit Jain, Director, Mahagun Group, says, “The luxury housing segment has never had it so good. The sale in the luxury segment is also expected to continue with the present upward momentum. However, this surge in interest is not just confined to luxury housing but commercial space with high-value retail chains have also witnessed an increase in demand.”