The constantly evolving definition of a home combined with Indians’ rising purchasing power is driving the luxury property market across the country’s top metros. Read on for a detailed analysis
This is the year of the luxury home-buyer and realty experts envisage a phenomenal jump in the sales of and the demand for luxury apartments in the Rs 10-25 crore range. A survey released by India Sotheby’s International Realty reveals that 67 per cent of High-Net-Worth Individuals (HNIs) plan to buy a luxury home in 2022 reflecting a strong and decisive turnaround in the luxury real estate segment. The survey that included over 200 HNI and Ultra HNI respondents gauged the mood of the luxury home-buyers across India’s markets – Bengaluru, Chennai, Delhi-NCR, Goa, Hyderabad, Kolkata, Mumbai, Kolkata and Pune.
Signs of a bullish market
As high-net-worth buyers remain focused on their personal achievements and accomplishing their goals, acquiring luxury real estate continues to be an essential component of their financial portfolios, as well as a critical part of a life well-lived.
Besides, a signature home with an elite address and added amenities is often privy to a distinct set of homeowners. And this set has gradually increased over the last couple of years following pandemic-induced upheavals. Bengaluru-based real estate developer Ravindra Pai identifies the reason being consumers spending relatively more time in their homes over the past 22 months due to remote work and education, resulting in families scouting for larger configurations to accommodate parents, children, and SOHO (small office/home office)
“There is also a rise in demand for high-quality homes with features including, but not limited to, business centres, convenience stores, home theatres, medical facilities and as much of their world as possible within/connected to the projects,” he posits. About 46 per cent of the respondents surveyed said the biggest reason for them to buy property in the pandemic years was to upgrade their lifestyle. About 31 per cent of HNIs also said the biggest motivation in the last 18 months was a good investment opportunity, reflecting the emergence of the bullish outlook that HNIs have on luxury real estate and their expectation of home prices to rise. Besides, almost 65 per cent of the respondents believed they do not see themselves going back to the physical office, all five days of the week, mentions the report.
Considering all residential real estate options available today, a bigger city-based apartment continued to top the wish list for nearly 34 per cent of home-buyers.
“Real estate remains one of the biggest and most significant aspirations for HNIs. Unlike some of the developed countries, where the price increase frenzy seems to be cooling off, in India, I believe, we are at the start of a price rise. We expect homes in the thriving urban centres, especially in Delhi-NCR and Mumbai, and the vacation home destination of Goa, to be the outperformers this year,” observes Amit Goyal, CEO, India Sotheby’s International.
Right pricing is the key
The dealmaker for a luxury city apartment or villa was the price range of Rs 10-25 crore with 69 per cent of HNI and UHNI respondents picking this bracket. The pricing sweet spot for a luxury holiday home was in the range of Rs 5-10 crore with as many as 71 per cent of respondents opting for this price band. However, about 29 per cent of the respondents were willing to spend more than Rs 10 crore for the right vacation home.
High interest in bespoke homes
Thematic interior design is defining the credo of carefully crafted homes, customised to the higher taste of its residents. Particularly, the wealthy younger generation wants a taste of opulence draped into luxury amenities. Sarabjit Singh, founder and architectural designer, Villa Ortigia, shares, “At the moment, bold pieces, which are superbly detailed and composed of a material palette consisting of wood, metal, and fabric are trending. Classical themes depicting the royal era such as dramatic Roman-inspired interiors epitomise luxury and establish the status of HNIs. Interiors fitted with deluxe furniture, elegant lighting finishes, and comfort layered with technology and tasteful pieces of art are highly essential and absolute must-haves for the swish affluent persona.”
It’s a different vibe in a farmhouse or villa in the outskirts of one’s native place, according to Meena Murthy Kakkar, design head and partner, Envisage Architecture Studio. “NRIs who come back to live in India prefer a traditional home; thus home-owner’s luxury aspirations change based on the location, purpose, and usage of the property. The house then reflects the childhood memories of the user with vintage décor elements. Materials such as teakwood, laterite, copper, stone, or anything vernacular are abundantly used.”
The shifting trend towards owning a bespoke and spacious luxury home in a prime neighbourhood that comes with the ideal price tag, size, and global amenities within secure environs seems to have set the pace for a promising luxury real estate market in the coming quarters.