Soaring to new historic highs, the Indian luxury-housing segment has witnessed stellar growth in the last two financial quarters. The rising demand has led to exponential sales exceeding 14%, as opposed to the 7% before the pandemic. According to the latest Anarock Research data, the top seven metropolitan cities in India have already recorded sales of over 1.84 lakh units. This constituted a massive 14% or 25,700 units being sold in the luxury resident segment alone. This has contributed towards an astounding growth from the 2.61 lakh units sold in the whole of 2019, wherein just 7%, or about 17,740 units, were in the luxury category.
DLF The Skycourt, Sector 86, New Gurugram
Resonating with the trend, a DLF spokesperson, said, “Since the beginning of 2021, there has been sustained sales growth across major Indian metropolises, but NCR saw a sizeable jump in demand for luxury homes. Today, luxury homes are no more about brick and mortar only, but the overall living experience with convenience and every amenity and facility, allowing people the time to pursue their passion. In the past two years, the housing market in Gurugram has emerged as a hot real estate investment destination, with annual price growth reaching record highs.”
The lion’s share of this surging demand has come from just seven metropolitan cities. Namely, the Delhi National Capital Region (Delhi-NCR), the Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. This was a remarkable uptick in sales, as NCR luxury housing sales increased from 4% in 2019 to 12% in H1 of 2022.
Vivek Singhal, CEO, Smartworld Developers, summarised, “The recent demand in the luxury segment is a testament to the resilient consumer mindset of giving impetus to the experiential aspect of life. It is not just true for real estate, but luxury home buying has seen this pattern across other categories too. Driven by strong consumer insight, Smartworld will soon be offering tastefully designed products in the newer micro-markets of Delhi-NCR.”
While property prices in Indian metropolitan cities appreciate strongly, Indians working outside India are confident of gaining double-digit returns on their property investments in India.
Expounding on the same, Ashok Singh Jaunapuria, MD & CEO, SS Group stated, “The demand for luxury homes has been steadily improving in the post-pandemic era, as they live up to the promise of adequate space, convenience, wellness, security, and grandeur. HNIs and NRIs are making significant investments in luxury housing to maximise returns and, in some cases, as a part of future planning. The demand for luxury housing can also be attributed to the inherent need, after the pandemic, to own a home where one can look forward to leading a retired life with all the amenities within the premises & accessibility to great social infrastructure nearby.”
Ultra-luxury residents with world-class amenities like integrated security, gym, swimming pool, play area for children, and proper parking space are the basic expectations for this demographic.
Santosh Agarwal, CFO and Executive Director, Alpha Corp said, “The demand for luxury homes within the real estate market is currently surging due to the safe and secure environment a luxury home offers for leading a luxurious and carefree way of life. High-net-worth individuals are currently looking for high-end estates and mansions within gated communities to ensure the safety and security of their families. Given the circumstances, it makes sense to assume that the luxury housing segment in India is going to remain strong over the next few years because of the abundance of lavish amenities and the necessity for full-fledged security and safety that they provide.”
With foreign investors infusing the luxury-housing segment with capital, the high-end realty market has witnessed exponential growth across Indian metropolitans. Indian expats expect premium-luxury amenities for their investments.
“Post pandemic, major focus shifted to owning a home; however, a huge demand has been witnessed for larger spaces, mainly in the mid-premium segment that features additional bedrooms, a home office, utility area etc. Buyers’ interest has been further catalysed with the relaxation in registration charges and wavers in stamp duty in some states, including Maharashtra and Delhi. Sensing the growth and demand in the particular segment, the leading developers are now venturing to launch new condominiums and luxury projects in Tier 1 and Tier 2 cities of the country,” shared Shashank Vashishtha, Executive Director, eXp India, a metaverse-based real estate brokerage platform.
