Premium and luxury segments in India have witnessed an unprecedented rise in both size and significance in recent years.
Premium and luxury segments in India have witnessed an unprecedented rise in both size and significance in recent years. Developers are increasingly launching and developing villas and luxury houses owing to higher demand. Evolving lifestyle and increased aspirations are the major factors leading to the redefining of the Villa Living segment in India. With the increase in dispensable income and affluent lifestyle desired by young professionals, there has been a 50 per cent growth in demand for villa living in some parts of the country in the current year as compared to the previous year, as per industry estimates.
Even when the overall industry faced a downturn in the recent past, the luxury segment continued to record good sales. Developers of luxury projects were undeterred and they continued to launch new projects.
A recent report pegs the share of luxury housing segment at 4-5 per cent of the overall housing market. This figure is set to rise as the number of affluent people goes up in the country. The number of ultra-HNIs in the country is expected to touch 4.83 lakh by 2025, up from the current figure of 2.36 lakh individuals. The number has already risen from 1.84 lakh ultra HNIs who were there in 2014.
Developers are lining up various formats of housing like penthouses, villas, bungalows etc. Location, proximity to the city, serene view and amenities are some of the things a buyer looks at while opting for a luxury property.
Villa Living within an integrated township, distant from the choked infrastructure of the city allows the buyer to enjoy more space, beautiful views and luxurious amenities within their means. Moreover, people are increasingly moving towards the Villa Living segment as it promises a gateway yet with all amenities for good living. Not just the breath taking and calm environment, but they have all the recreation with clubhouse, swimming pool and amphitheater, to name a few.
The Indian economy’s growth with a positive change in the lifestyle of the people living in metros and the growing middle class have led to increased demand of villa living. Higher GDP growth will enable a lot of people, especially executives working in blue-chip companies, to climb up the leisure-property ladder and buy luxury houses for themselves. For example, Paramount Golf Foreste Villa project in Greater Noida has many buyers who are working in the corporate world. Solitairian Villa, Ajnara London Square, Supertech Golf County Villa, Anant Raj Estate Villa are other examples of villa projects which have more or less similar occupancy.
There are people who are buying weekend retreats to escape the madding city crowds. The luxury projects are thus coming up in smaller and quaint regions and locations in the country.
Technology is playing its role in making villas even more attractive for the end users. The new technology tools and Internet-of-Things is making it possible for people to have greater features and comfort in these villas.
Apart from serving the residential purposes, villas in an integrated township are valuable assets for investment. Many investors find investing in a luxury project more convenient as they have to buy fewer units than in other projects where they have to buy a larger number of units. There have been many big deals recently in the villa segment in the country.
(By Ashwini Prakash, Executive Director, Paramount Group)