India is becoming known for its posh neighbourhoods, amazing vistas, and heated grand swimming pools. Many stories that showed a big throng gathering outside the office of real estate developer DLF during the inauguration of a new project went viral back in February. The image depicted the crowd gathered outside of the business. The urgency was caused by the high cost of purchasing an apartment in that project, which was seven crore rupees. The company DLF has stated that it had sold 1,137 of these types of projects in its Gurgaon business in the last week. This is not an isolated occurrence at all. There was a 65% increase from the average value of properties registered in February 2022, which was 1.18 crore, to the average value of properties registered in February 2023, which was 1.9 crore. This increase was noted in the data collected during February 2023.
Recently, there has been a significant increase in the demand for luxury houses in India. When you think of luxury housing, you probably imagine amenities such as heated pools and spas, community gardens where residents can grow their herbs and vegetables, a clubhouse that is open 24 hours a day and has pool tables, games, a business centre and a coffee bar, and a fitness centre that has high-end cardio and strength training equipment. Money can buy luxury housing.
A frenzy: If we define 2 crores and above as a general reference point for luxury housing, there has been an offtake of nearly 6,000 units in the top seven cities in the last quarter with a gross sales value of nearly 22,000 crores." This indicates that there has been a significant increase in the demand for luxury housing. According to the managing director, "During this period, there has been a new supply of approximately 12,800 units in the top seven cities in the luxury bracket. This number is the highest it has been in many years before. The first and second place, respectively, with a combined proportion of sales of more than 50% is, Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) come in. Next on the list comes Bangalore, with a 20% stake, followed by Pune, with a 15% share. Hyderabad and Ahmedabad have less than 10% market share in the premium sector.
In recent years, there has been an increase in the number of inquiries regarding luxury real estate in India.
The expansion of the Indian economy, which has resulted in the making of a new class of rich individuals with significant purchasing power, is one of the key causes of this phenomenon. "They are willing to invest in premium living spaces that offer exclusive amenities, top-notch services, and lavish facilities," says the chairman of a real estate services business. "[T]hey are looking for a place to call home that offers all these things."
Alterations in the ways of life and goals pursued by the urban population in India are another factor contributing to the rise in demand for luxury real estate in that country. "Many individuals now seek a luxurious and comfortable living experience, which has led to a rise in demand for high-end residential properties that offer a host of amenities, such as swimming pools, fitness centres, and landscaped gardens," says the chairman of a real estate business. "This has led to a rise in demand for high-end residential properties that offer a host of amenities, such as swimming pools, fitness centres, and landscaped gardens."
The fear and uncertainty surrounding the Covid-19 pandemic have contributed to an increase in the purchasing of luxury homes in India. As a result of the epidemic, people's ways of living and working have had to adapt, and many people are now searching for homes that are larger and have more room to support work-from-home arrangements and other lifestyle adjustments. The recent decision that the government made in the Union Budget 2023-24, which will begin to take effect from April 2023, might be a key reason for the increasing sales of high-ticket price properties in Mumbai and other top cities. This move will take effect from April 2023.
If an individual sells a house or other assets, including shares, and realises profits that are more than 10 crores as a result of the sale of such assets, then the maximum advantage that the individual can avail when investing those gains in another property is limited to 10 crores. Gains on investments worth more than 10 crore rupees would be subject to taxation beginning in April 2023. According to one chairman, high-net-worth individuals (HNIs) in key cities like Mumbai are hurrying to conclude luxury real estate acquisitions before the end of the financial year in March so that they may avoid paying taxes on capital gains.
In India, luxury properties are generally mean the expensive properties with world-class amenities and features.
According to the chief executive officer of a luxury real estate firm, Many properties are situated in desirable locations such as upscale neighbourhoods and central business districts. They are meticulously designed to offer residents a luxurious and comfortable living experience. There is no commonly accepted meaning of luxury housing; rather, the meaning of the term varies from one location to another based on the nature of the real estate market, the population, and the preferences of residents' ways of living.
"For instance, luxury housing in Mumbai may refer to high-rise flats with views of the sea, but in Delhi, the term may apply to enormous villas with private gardens and swimming pools. Similarly, according to a chairman, luxury property in Bangalore may consist of gated communities with world-class spas and athletic facilities. Recently many Transactions involving luxury properties surpassed 15 crore rupees when handled by a real estate business. "However, taking into account the purchasing power parity in India, we can consider real estate that is priced at half a million dollars or around 4 crores as being in the luxury category, and anything priced at more than 10 crores as being in the uber-luxury category in the top seven cities of the country," says a CEO.
According to the findings of the most recent Luxury Outlook Survey 2023, high-net-worth individuals (HNIs) are most interested in purchasing real estate in the price range of 4-10 crore. Almost 65% of HNIs are looking for investment options in this price range. On the other hand, 33% of HNIs and UHNIs are willing to spend more than 10 crores to acquire the appropriate high-end luxury property. A variety of options, including lifestyle and world-class facilities available to residents, influence modern-day luxury living. This is the new normal. "Luxury homes are now more readily available in areas closer to important business centres, compared to being limited to only a few specific locations, allowing buyers of luxury apartments to be in prime-location stated the director of a mid-luxury to luxury housing company in Mumbai, Pune, and Bengaluru. "The availability of luxury residences has increased from a few restricted pin codes because they are closer to key business hubs," adds the director.
Wadala has emerged as one of the most promising home-buying sites in Mumbai, with smooth access to the business centres of Bandra Kurla Complex, Lower Parel, and other major parts of the city of Mumbai. Wadala is located in the posh western suburbs of Mumbai. The general notion of luxury living has experienced a significant transition, and it is no longer only tied to the affluent neighbourhoods. According to the founder and managing partner of a premium real estate developer, "Luxury living in the modern era entails residential properties that prioritise comfort, safety and a wide range of experiential amenities. It strikes a balance between lavishness and ease, ultimately elevating the lifestyle of residents. For instance, modern-day luxury living entails residential properties that offer last-mile comfort, safety, and numerous modern experiential amenities.
In the lap of luxury: Today's consumers expect amazing experiences from the brands they patronise. They yearn for an extravagant way of life, and their concept of luxury itself has developed.
It can be said that Consumers are looking for bigger accommodations and well-defined homes with floor-to-ceiling heights of at least 11 feet." There has been an uptick in the number of people purchasing homes with 5,000 square feet of space or more. According to the executive director of a real estate business, "the demand is being driven by a clear shift in the thought of home buyers who desire to go from independent residences to more delux luxury flats or apartments."
Home automation technology is becoming increasingly common in today's most expensive houses, giving homeowners absolute control over how they strike a healthy balance between their professional and personal lives. In addition, "in-built spaces" such as vestibules and spacious decks, in addition to project amenities like heated infinity swimming pools, podium parking, and terrace gardens, are being provided by premium developers, according to a managing director.
For now, it is anticipated that the demand for luxury real estate in India will keep expanding over the coming years. This is expected to be driven by a number of reasons, including increased prosperity, shifting lifestyles, and shifting work arrangements.
Data Source- Online and many websites.