India’s luxury housing sector is in a state of increased activity of late. Depicting a massive upturn post-pandemic, its sales share has doubled and increased by 7% in H1 of 2022 from what it was in H1 of 2019, as per Anarock’s recent report. The luxury RE sales accounted for 14% across 7 cities in this year’s first half, compared to the sales records that were only 7% of the number of housing units sold in 2019.
The dramatic increase in the sales figure shows buyers’ penchant for luxury homes. The emergence of NRIs and High Net-worth Individuals (HNIs) in the realty space has a huge role to play in the growing demand for luxury homes. Both HNI and NRI investment in luxury real estate space has seen a dramatic uptick recently.
A scrutable picture can be drawn in the case of luxury real estate’s future in India. A Sotheby’s Luxury Housing Outlook-2022 study provided promising estimates. It reported that up to 67% of high-net-worth individuals are planning to invest in luxury houses in 2022. On the other hand, a 360 Realtors study has also painted a similar picture pertaining to NRI investment in the real estate sector. Noting that the NRI investment amounted to $13.1 billion in 2021, it reported that the investment is poised to increase by 12% in 2022.
The general trends reported that post-pandemic, odds are stacked in favour of luxury homes compared to affordable housing. The former has a bankable customer base, while the sales of the latter have dipped as the affordable home buyers were economically hit by the pandemic and are recovering at a slower pace.
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Indian luxury RE space has also witnessed a significant supply to meet the ever-increasing demand. Usually, luxury properties are priced at or above Rs 1.5 crore and go up to 150 crore. Interesting, despite the pandemic slowdown, luxury home prices have been fairly maintained. There is no dearth of supply. In fact, the abundant demand has been responded to with equitable supply.
What is impressing NRIs and has driving them to invest in homeland properties is the diverse classification of luxury homes. It ranges from villas and independent homes to condominiums, apartments, plots and luxe superplexes. There is no end to its availability in various formats at fair exchange rates.
It is seen as a real estate class driven by people’s demands. The post-pandemic performance of luxury real estate has proved the naysayers wrong. They termed hopes of its post-pandemic revival as quixotic and far-fetched.
To bolster the luxury RE markets, developers are roping in famous interior designers and collaborating with them to furnish a supreme luxury living experience for clients and homebuyers. An Anarock survey showed that the new launches in luxury space have increased by 230% and have been overhauling a vast expansion.
Luxury Housing has become a buyer’s delight. It has harped on the popular sentiments of people and cashed in on the current market trends, favouring the growth of luxury real estate.
(By Ashwinder R Singh, CEO Residential, Bhartiya Urban)