Luxury real estate will gain the maximum amount of traction in the coming year. Plotted Development, Luxury and Uber luxury apartments will further strengthen their market hold and increase their consumer markets, says Rajesh K Saraf, MD, Axiom Landbase.
In an exclusive interview with Sanjeev Sinha, Mr Saraf talks about the real estate market of Gurugram and shares his industry outlook for 2023. Excerpts:
With less than a month left before the completion of 2022, in retrospect, how do you think this year was for the real estate sector?
The real estate sector gathered a fairly good momentum in 2022. Many termed it as an ‘inflection point’ or turning chapter for the sector considering the economic vacuum it saw during the last two years. There was a noticeable jump in sales as buyers realised the sustainable value of owning homes. Their belief strengthened as they viewed homes as a source of reliable asset ownership. The infrastructural boost amplified the capital appreciation value of properties which attracted buyers to the markets. Luxury and ultra-luxury homes emerged as top-selling realty properties, fuelling both demand and supply.
What is the future of the luxury housing segment, seeing that it has received good traction and buyer engagement post-pandemic?
The future of luxury housing segment seems promising. There is a prominent increase in the sales of semi and fully furnished luxury 2, 3, and 4 BHKs and have in the successive quarters even outnumbered the sales of pre-pandemic years. The NRIs have also entered the domestic real estate markets with most of them showing interests in long-term real investments compared to stocks, fin-tech etc. Metro cities have also seen an ever-increasing population of High-Net-Worth Individuals (HNIs) who see luxury properties as their comfort homes and first choice of living. Overall, luxury housing has a good future with an enlarging and reliable market base.
What do you think is a value for money investment in Gurugram — Farmhouses or Plotted Developments — considering Gurugram has seen the maximum growth in both these developments?
Farmhouses and Plotted Developments are trademarks of Gurugram real estate markets. Both are value-for-money investments and deciding in which to invest is a matter of buyer preference. The appreciation value of plotted developments is more compared to residential societies and apartments as they are located in newly developing sectors and corridors, which are emerging as realty hotspots. Dwarka Expressway and Sohna Road have come up as top-investment zones for plotted developments. Most buyers in Gurugram are selling their flats and independent floors to invest in plots and design it according to their tastes. Plotted developments are also concentrated in Sector 93, 94, and 95 and in many parts of New Gurugram.
Farmhouses are another category which have caught the attention of retired NRIs and Ultra High-Net-Worth-Individuals. Though no new hotspots have emerged in case of farmhouse, Sultanpur and Chattarpur have emerged as classic farmhouse destinations. Nowadays, farmhouses have large tracts of arable agricultural land which serves as post-retirement or subsidiary income avenue for people who reserve it for agricultural farming or poultry zone for alternate earnings.
What is your opinion on the growth of Holiday Homes in Gurugram? Which sectors offer buyers the best-available options for Holiday Homes?
Holiday Homes have also seen an unprecedented growth in Gurugram. Villas are the most popular holiday homes mostly for renting purposes. Delhi NCR enjoys smooth connectivity to various regions of the country through various lines of transportation and has become an ultimate pitstop for outings, trips, and vacations etc. People in groups prefer to invest in holiday homes rather than pricy hotel rooms to enjoy and take pleasure of the surroundings to the maximum level. The holiday home market in Gurugram is booming and has seen an upward trajectory post-Covid.
How do you gauge the impact of constant repo rate hikes on the estate markets in NCR? Has the housing demand dampened or have the markets recovered?
The constant repo rate hikes have invariably increased the cost of homes. But it has not caused a downslide in housing demand. The job markets have expanded and employees salary sizes have increased and as an offshoot, their purchasing capacity has also developed. They know the value of owning a home is only going to solidify their economic standing in the coming years. So they are not averse to buying homes at increased costs, which was ultimately going to happen due to the pandemic lull and inflation.
What is your observation on the future of the real estate sector in 2023? Which housing trends will be the most dominant?
Luxury real estate will gain the maximum amount of traction. Plotted Development, Luxury and Uber luxury apartments will further strengthen their market hold and increase their consumer markets. The revival of commercial real estate sector will further be consolidated. The future of the real estate sector is very favourable as the demand for housing will see a further increase banking on the completion and announcements of new projects.