– By Harrish Kumar Jain

The demand for luxury housing in India has been on the rise in recent years, and many experts believe that this trend will continue to grow in 2023. With a growing middle class, rising disposable incomes, and increasing urbanization, more and more people are looking to invest in high-end homes. This trend is likely to drive prices for luxury housing even higher, as demand continues to outstrip supply.

One of the key factors driving the demand for luxury housing in India is the growing middle class. As more and more people move into the middle class, they are looking for homes that reflect their new-found wealth and status. This has led to an increase in demand for high-end homes, with many people willing to pay premium prices for properties that offer the latest amenities and features. The rising disposable incomes of many Indians is also contributing to the growth in demand for luxury housing. As people’s incomes increase, they have more money to spend on luxury items, including housing. This has led to an increase in demand for luxury homes, as people look to upgrade their living standards and enjoy a more luxurious lifestyle.

In addition to these factors, the increasing urbanization of India is also driving the demand for luxury housing. As more and more people move to cities, they are looking for housing options that offer a high standard of living. This has led to an increase in demand for luxury homes, as people look to live in neighborhoods that offer a range of amenities and services such as state-of-the-art fitness centers, swimming pools, and spas, as well as concierge services, valet parking, and 24-hour security. By offering a range of luxury amenities, developers can differentiate their properties and attract buyers who are looking for a high-end living experience.

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Despite the 2020 real estate slump, luxury real estate has come shining out in 2022 as one of the fastest growing niches in real estate. As per the experts, luxury real estate is poised to grow at a steep 40 per cent rate in the years to come. Only this year, in the first quarter, sales of luxury homes priced above Rs 5 crore jumped up 23 per cent from 16 per cent in the last quarter of 2021.

In the ultra-competitive environment of Indian real estate, sellers are adapting to meet their buyer’s rising expectations in parallel, and in this vein the real estate industry has upped its game in a number of ways. Most important has been the widespread and high impact digital transformation that has been taking place in almost all sectors of the economy. Property developers are showcasing their flats and offices using cutting edge VR/AR technologies, hosting online launches in a bid to foster better client relationships. The government has although been lacking in this aspect, but have recently come to recognize the supremacy of online paperwork to the conventional grid-locked and time consuming paper based bureaucracies. 

The real estate sector has a lot to offer to its overseas clients from swanky resort-hotels, hip office spaces, luxury homes in amenities-flush townships, to commercial real estate funds. Real estate as an asset class and a great store of value has stood the test of time, hardening and becoming more and more “antifragile” with each new wave of market turbulence. 

Overall, it is clear that the demand for luxury housing in India will continue to grow in 2023. With a growing middle class, rising disposable incomes, and increasing urbanization, more and more people will be looking to invest in high-end homes. This trend is likely to drive prices for luxury housing even higher, as demand continues to outstrip supply. As the demand for luxury housing grows, developers and real estate companies will need to keep up with the changing market and offer a range of luxury homes that meet the needs and preferences of today’s buyers.

(Harrish Kumar Jain is the Vice President of Brihanmumbai Developers Associations)