The luxury market has benefited the most in the current environment; there is a huge demand for projects that promote a healthy lifestyle and bring people closer to nature. A resort-like comfort where everything is taken care of is attracting luxury buyers. A majority of customers are millennials who have travelled extensively and experienced what luxury life entails. For these buyers, every detail must be exceptional and blend in with the surrounding environment.
The COVID-19 has compelled consumers to seek homes that reflect their personalities; luxury has grown from a snobbish connotation to a sphere of family health and wellness. The lifestyle requirement led to the increase in demand for a price category above Rs 75 lakh. According to housing.com data, demand for homes in Delhi NCR priced between Rs 75 lakh and Rs 1 crore is 13%, and for homes priced above Rs 1 crore is 24%. The figures are an indication of the increasing demand for luxury homes in Delhi NCR; however, the trend is not limited to this region, but is evident across India.
In Delhi-NCR, Noida has emerged as the preferred destination after it pipped out other areas through constant infrastructural development that indirectly extolled buyers to look at the city as an ideal destination for living. The city has always been known for the planned development, and the latest infrastructural additions have tilted the scales towards the city.
The luxury market, more than other segments, moves according to the business opportunities a place or nearby area has on offer. The infrastructure development has recently opened up opportunities for setting up business in Noida, which has increased the likelihood of premium buyers migrating to the region. PM Narendra Modi laid the foundation for Noida International Airport recently, which will attract a lot of investment from various industries. A new section of the corporate class, including HNIs and UHNIs, will be evaluating the city for long-term income opportunities due to seamless connectivity and high-end infrastructural developments such as Film City. The demand for properties for businessmen and senior executives will continue to rise.
Noida is planning an ‘Electronic Park’ for electronic products and accessories along the Yamuna Expressway, following Toy Park, Film City, Medical Device Park, and Leather Park. The park is planned to bring in Rs 50,000 crore in investment and provide jobs. The park would most likely be built in either Sector 14 or Sector 10 of the YEIDA near Jewar Airport, covering a total size of 250 acres. All of these changes will result in a significant increase in the demand for real estate development, both residential and commercial. The time is right to invest in Noida and Greater Noida.
The encouraging market movement is supported by various industry reports also. A CII-ANAROCK Consumer Sentiment Survey underscored how radically COVID-19 has altered homebuyers’ preferences. The survey also pointed out that “for the first time, affordable housing is the lowest priority, with more than 34% respondent home seekers focused on properties priced between INR 90 lakh to INR 2.5 Cr. NRI participants in the survey primarily preferred luxury properties priced between INR 1.5-2.5 Crore.”
Investor confidence in real estate has risen; branded developers dominate the new housing supply, and buyers consider them safe bets. Since the first unlock last year, the real estate sector, particularly the residential segment, has shown encouraging growth; the sector has suffered unforeseen challenges due to the COVID issue, but it has maintained its lustre. In fact, there has been an increase in demand for larger homes that prioritise residents’ health. The percentage share of premium and luxury goods in overall sales will continue to rise.
There was a time when Noida and Greater Noida were seen as the destination for middle-class buyers with luxury restricted to providing bigger homes in a few projects. However, the perspective has gone through a sea change when developers came up with properties in the region that redefined NCR’s luxury real estate market. When the global pandemic struck, the Indian real estate sector took its brunt, and many predicted a protracted period of hardship, particularly in the luxury sector. However, things changed as people became more interested in luxury because of the healthy lifestyle it promised. This year, the definition of luxury evolved from pricy furnishings to a full way of life.
(By Deepak Kapoor, Director, Gulshan Group)