The millennials’ fixation with a lifestyle upgrade seems to be going in favour of Luxury Real Estate. Recent studies have outlined a robust sales picture for luxury housing projects catching the attention of High-Net-Worth Individuals. The Sotheby’s Luxury Housing Outlook-2022 report showed that up to 67% of high-net-worth individuals have plans to buy luxury houses in 2022.
The massive demand has been ably supported by an abundant supply. A recent Anarock study reported that there is an increase of 230% in the new launches in the luxury housing vertical, which are priced above Rs 1.5 crore. NCR will be an enormous gainer in this regard as it has the best-selling high-end luxury properties across multifarious types and divisions.
Demand for luxury housing has witnessed a surge in regions such as Noida, Gurugram, and Faridabad and widely across the NCR circuit. Large township offerings, luxury condominiums, villas, second homes or holiday homes, and luxurious plotted developments are ranked as some of the most wanted luxury properties.
In fact, premium luxury property registered an overall sales of 12% in Q1 2022, which was an imminent shoot-up from 7% in Q1 2019. A primary reason for this is the ultra HNIs have a penchant for larger homes and grandiose settings and are more likely to invest in luxury housing rather than any other form of real estate.
With the double condo of good economic strength and availability of highly disposable income, HNIs have emerged as one of the biggest investors in luxury real estate, and the discernible reason for this is the desire to escape ordinary life. The rise of the elite working population in metro cities such as Delhi-NCR, Mumbai, Bangalore etc., have also motivated developers to come up with high-budgeted, grand-scale luxury buildings.
The luxury projects nowadays echo the idea of a modern, contemporary lifestyle, which hinges on the fancies of every millennial household. The present-day modern homes offer a well-grown environment, advanced security features, and high-end recreational amenities such as Amphitheatres and Clubhouses. Some luxury establishments also provide inbuilt smart home systems and home decor.
The real estate industry is in tandem with modern technological adoptions. The luxury projects blatantly prove this. Embracing modern changes and equipping projects with highly advanced, equitable features have also made these projects popular among the HNIs. Recently, independent floors and high-end 3 BHK and 3BHk+Home office apartments have also received immense traction.
The availability of such projects at prominent and well-connected realty corridors also increases their sales power. The majority of people want to invest in luxury residences which are close to their offices, places of work, commercial establishments, and expressways. Moreover, the recent trends definitely picture a good future for luxury projects, with HNIs and millennials being the primary buyers. After the pandemic, it has etched out a stellar performance and made a strong comeback. It will continue to churn out numbers in Tier 1 and Tier 2 cities, which will also be a much-desired change in the Indian real estate sector.
(By Ansh Batra, Director, Buniyad Group)