 "Premium properties, Luxury housing")
The luxury housing industry saw remarkable growth in the first quarter of the calendar year 2023, exceeding market expectations and capturing the attention of high net worth individuals (HNIs) worldwide.
The latest industry reports show that the sector had become a hotbed of investment, with HNIs looking to diversify their portfolios and seeking out exclusive and high-end properties.
According to a recent report by real estate consultant Anarock, Quarterly housing sales are at an all-time high in the last decade, with approx. 1,13,770 units sold in the first quarter of the calendar year 2023 across the top 7 cities, a 14 per cent yearly rise against approx. 99,550 units sold back in Q1 2022.
NCR saw an increase of 123 per cent in new launches against Q4 2022 with approx. 12,450 units launched in Q1 2023. NCR based developers attributed this surge in new launches to rise in demand for high-end homes in recent times.
“The quarter has recorded the highest ever sales in the last decade amid significant rise in demand for high-ticket priced homes of more than Rs 1.5 crore," said Anuj Puri, chairman, Anarock.
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Furthermore, according to real estate experts, the demand for luxury homes in Delhi-NCR is driven by a desire to improve one’s lifestyle, such as comfort, security, status, technology, and having neighbors with similar values and interests.
The luxury sector is over-indexed, with homes priced at Rs 2-3.5 crore growing at a faster rate. Despite rising home loan rates and property prices, home ownership sentiment remains strong across the country.
The Indian real estate sector will keep up its positive energy and trends in 2023 due to the increasing demand for luxury housing and the motivation of purchasers to invest, experts say.
Pankaj Bansal, director, M3M India, said, “The aspirational middle-class millennials and Gen-Z are emerging as key drivers of the realty economy, which is now likely to grow by 12-15 per cent CAGR in the next five years. There is also a paradigm shift to 3 BHK from earlier 2 BHK. This shift is being seen in the majority of the cities including NCR."
There will also be a significant shift by the middle class from mid-segment homes in 2023, ranging from Rs 40-80 lakhs to high-end luxury residential units, priced between Rs 80 lakh and 1.50 crore, which is contributing to about 62 per cent of demand, Bansal added.
According to experts, the luxury and ultra-luxury segments too consisted of a steadily rising share of new launches at 12 per cent and 6 per cent, respectively.
According to an Anarock report released in 2022, luxury housing in India has done remarkably well since the pandemic, with overall sales increasing sharply across the top seven cities.
In the first half of the calendar year 2022, almost 14 per cent (25,700 units) of about 184,000 residential units sold in these locations were luxury. In contrast, only 7 per cent (nearly 17,740 units) of the 261,000 units sold in 2019 were in the luxury group.
Another Gurugram-based developer, Jatin Lohia director, Lion Infra Developer (LID), also believes that luxury housing will grow phenomenally in 2023, exceeding market expectations and capturing the interest of numerous HNIs.
"The unique blend of impeccable craftsmanship, lavish amenities, and unparalleled exclusivity that luxury properties offer will continue to be a compelling draw for the most discerning of buyers. This trend is already evident in our high-end residential developments in Sohna, Gurugram, where we are witnessing a growth in demand for luxury independent floors. This upsurge in demand for high-end properties is a testament to the enduring appeal of luxurious living," Lohia added.
The luxury housing industry has been on an upward trajectory for the last few years, but this year's growth has been exceptional.
The main drivers of this growth are the surging demand for high-end living experiences, fueled by the rise of affluent millennials and an increase in global wealth.
Experts believe that this has led to a surge in demand for luxury homes across the world, with developers scrambling to meet the needs of this lucrative market segment.
Additionally, the increasing availability of financing options for luxury homes has opened up the market to a wider range of buyers, leading to increased demand and sales, they said.
Navdeep Sardana, chairman & managing director, Whiteland Corporation said, " Southern Peripheral Road (SPR) in the NCR region is witnessing higher demand in luxury housing, as buyers are drawn to the area's excellent connectivity and prime location, further fuelling the growth of the luxury housing segment in the region."
To make WFH more comfortable and productive, buyers are seeking lavish abodes with multiple features and larger offices.This shift in demand is expected to position the NCR as a leading destination for luxury living, raising the bar for upscale residential offerings.
