The rise of NRIs and HNIs in the real estate market has significantly influenced the rising demand for luxury residences.
The Indian luxury RealEstate (RE) industry has seen tremendous supply to accommodate the ever-increasing demand.
The luxury home market in India has recently seen a rise in activity. According to the most recent report, property sales share has quadrupled and climbed by 7% in H1 of 2022 from in H1 of 2019. Luxury RE sales accounted for 14% of all sales in 7 locations in the first half of this year, compared to sales records that accounted for only 7% of all housing units sold in 2019.
The substantial increase in sales demonstrates customers' preference for luxury residences. The rise of NRIs and High Net-worth Individuals (HNIs) in the real estate market has significantly influenced the rising demand for luxury properties. HNI and NRI investment in luxury real estate has recently increased dramatically.
In the case of the future of luxury real estate in India, a clear picture can be painted. A Sotheby's Luxury Housing Outlook-2022 research presented encouraging projections. According to the survey, up to 67% of high-net-worth individuals want to invest in luxury homes in 2022. On the other hand, realtor research revealed a similar picture of NRI investment in the real estate market. It showed that while NRI investment was $13.1 billion in 2021, it is expected to grow by 12% in 2022.
According to typical tendencies, the odds are stacked in favour of luxury residences over inexpensive accommodation after the pandemic. The former has a bankable client base, but the latter's sales have decreased since affordable house purchasers were economically impacted by the pandemic and are recuperating at a slower rate.
The Indian luxury RE industry has seen tremendous supply to accommodate the ever-increasing demand. Luxury residences are typically priced at or above Rs 1.5 crore and can go up to Rs 150 crore. Surprisingly, despite housing, values have remained rather stable. There despite the global recessions no scarcity of supplies. In reality, the plentiful demand has been met with equal supply.
The broad categorisation of luxury residences is what impresses NRIs and drives them to invest in homeland properties. It includes everything from villas and standalone residences to condominiums, flats, plots, and luxury superplexes. It is widely available in a variety of forms at reasonable exchange rates.
It is regarded as a real estate class driven by consumer demand. Luxury real estate's post-pandemic success has proven the doubters wrong. They dismissed post-pandemic resurrection ideas as irrational and unrealistic.
Developers are enlisting notable interior designers and cooperating with them to provide an ultimate luxury living experience for customers and purchasers to boost the luxury RE markets. According to a survey, new releases in the premium category have surged by 230% and have grown tremendously.
Luxury real estate has become a buyer's paradise. It has capitalised on widespread feelings and current market trends, favouring the rise of luxury real estate.