How Luxurious Housing Has Evolved in India?
09 March 2016
You may be right to claim that the Indian real estate market is not moving at the same breakneck speed that it once used to. The reasons could be many! However, you will be surprised to know that the demand for luxury homes segment has surpassed expectations of many. Gone are the days, when luxurious home projects were few and far between. Almost every reputed builder is involved in developing luxurious residential projects in Mumbai, and other cities of India.
And much of this can be attributed to the fact that people’s expectations from a luxurious home have evolved quite a bit! For example, earlier, luxurious homes used to get developed only in the uptown areas, i.e., places which were predominantly expensive. Now, with the advancement of most areas in cities, people have started demanding luxurious homes across different areas. It is no longer just about the fancy location. Now, we even have various forms of luxurious homes like large flats, apartments, villas, penthouses, bungalows, and so on.
People are ready to buy a luxurious property, as long as they get all the amenities that desire for. And if this list of amenities has grown exponentially over the years, mainly due to what people see on TV, movies, and even on the internet. Also, more people have now been to foreign countries, and are aware of the luxurious and modern amenities that can be made available in their homes.
Also, the number of people who have grown rich has increased manifold. The luxury homes are now designed not only for the supreme upper class, but, even the upper middle class, who are willing to spend more to get the extra luxuries in their daily monotonous lives. The stress levels have increased and people living in cities want to make good use of their hard-earned money by putting it to good use. What better way than spending on your lifestyle beginning at home?
It is now common to expect luxurious residences possessing a private gym, swimming pool or jacuzzi area, garden and lawn, full automation, central air conditioning, separate entertainment room, and such luxurious features. Depending on the features being made available, even the luxury home segment is sub-divided into smaller categories like super luxury homes, affordable luxury homes, and so on.
A prime distinction is that for the super luxury homes, people who buy them are mostly willing to spend any amount of money to get the best of everything. Even if certain type of raw material or technology is not available to get the desired architecture or interior design, the super luxurious home segment audience is willing to invest in getting the necessary stuff imported from abroad. And it is now common to expect the super rich demand for a separate bar area inside their homes. Such is the extent to which expectations have increased!
With regards to the affordable luxury homes, it is more about what the builders or developers have already offered in the name of ‘luxury’ by reducing the costs, wherever possible. If they don’t do so, the luxury homes would never be ‘affordable’! So, these homes may contain access to several shared amenities like gym, swimming pool, gymkhana, jogging track, and so on.
To add to this, NRIs seem to have growing interest in certain type of branded luxury homes, where the developers tie-up with some globally renowned brand. The costs in such cases shoot up to enormous proportions, but, it hardly matters to the super rich people. Many buy such homes to live in, while there are some really rich people who like to invest in such super luxurious homes as well. As they know, that the return on investment for such luxurious residential homes is immense.
And statistics reveal a constant rise in the demand, and hence the prices for luxury homes in different cities of India. For example, a city like Mumbai sees an annual price rise of around 30% to 40% for this segment. Similarly, Gurgaon experiences a rise of 20 to 25%, while Bengaluru sees an annual price rise of 30%, for the same segment. Which other investment alternative can give such kind of returns to any foreign investors? And mind you, the price range of luxury homes (single apartments or duplex ones) is different for different cities as listed under:
- For Mumbai – INR 10 crore to INR 100 crore
- For Bengaluru – INR 85 lacs to INR 7 crore
- For Hyderabad – INR 80 lacs to INR 5 crore
Going by the ever-increasing demand for such type of residential housing projects, luxury homes segment is here to stay for long!