Luxury realty set to witness robust growth in 2023

Luxury realty set to witness robust growth in 2023

Luxury real estate has emerged as the most preferable investment class among homebuyers, as evident from a recent Anarock report, which stated that there has been a 230% rise in the new launches in the luxury real estate category, priced over Rs 1.5 crore. Luxury properties have also reported a tremendous increase in sales across India’s top seven cities in Q1 2022 compared to Q1 2020.

In addition to that, modern-day luxury projects have acquired significant NRI investments. A 360 Realtors report suggested that NRI investments accounted for $13.1 billion in 2021 in the realty zone and are pegged to increase by 12% in 2022. NRI investment is mainly driven by two real estate classes, Luxury projects and Holiday Homes.

Recent studies have indicated a rise in sales and launches of luxury projects across India, especially in the NCR region, which has come up with the most sustainable and well-grown environment-centric luxury projects.

The rise of millennials with solid economic background, income stability, and disposable revenue flows has generated the most reliable and loyal buyers of luxury real estate homes. High-quality life and green environment have been the core demand of buyers, especially post-pandemic, which has woken them up to a realization that has invariably shifted their buying preference in favor of luxury properties.

The current crop of luxury projects offer a wide range of amenities like Swimming Pool, Pet Shelter, Covered Ladies’ Alcove, Kid’s Creche, Kids’ Pool & Play Area, Yoga/ Meditation Corner, Indoor Golf Putting Green, Banquet Hall, Clubs, and Amphitheaters. Modern Luxury homes are designed to lure the predisposition and luxury fancies of the young working population and mirror the idea of a well-maintained luxury lifestyle.

The Delhi-NCR region has always been a realty juggernaut of top-class luxury projects and property options. Various IT professionals, investment bankers, business moguls, and actors view the region as a hub of the most high-return investment options across India.

The recent infrastructural developments, excellent road connectivity, and expressways like Yamuna Expressway, Noida-Greater Noida Expressway, and Dwarka Expressway have also boosted luxury property sales due to mass migration to popular sub-cities with huge opportunity bandwidth.

It is not an abstruse phenomenon to gauge. Naturally, people will be drawn to growth-oriented hotspots with scalable road and transport connectivity. Adding to that is the massive spike of commercial centers and IT hubs in Noida and Greater Noida, which has produced superb employment nests and jobs for social groups, prompting them to look for luxury property options in nearby townships.

Luxury properties, in the last decade, have also placed a great emphasis on interiors and visual appeal. Buyers scouting for luxury homes have an inclination towards choosing and finalizing homes that not only provide comfort and diverse forms of amenities but are also aesthetically pleasing and enamoring. It is one of the biggest reasons why luxury real estate developers form tie-ups with interior designers to enhance the visual serendipity of the houses and beautify them in a manner that make them too tempting to give a miss.

Post the pandemic, the real estate market is back on track with luxury properties topping the sales. Developers are leaving no stone unturned to launch new projects to encash the growing demand for luxury homes and widen their customer base. With heightened NRI interest in luxury property and the presence of an ever-growing domestic clientele, the luxury real estate market is most likely to witness robust growth in 2023 and consolidate India’s position as one of the fastest-growing realty markets.

(By Sanjay Sharma, Director, SKA Group)

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