Luxury Housing: Slow But Steady Mode May Change
Luxury housing earlier mostly defined by huge bungalows in different cities is now undergoing a critical transformation
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Luxury housing earlier mostly defined by huge bungalows in different cities is now undergoing a critical transformation. With land coming at a premium due to its scarcity, the segment has found a new identity in the form of large apartments filled with amazing amenities - both in terms of technological convenience and environmental sensitivity. Take a look at any buzzing economic hotspot in India and there is no dearth of these ultra-luxury abodes probably responding to the buyers' desire of making a statement with his house. These houses (mostly in the range of above Rs 1 crore category) could well be called the symbol of a rising India where individual aspirations are on a soaring trajectory.
The new age aspirants lie at the core of emergence of luxury housing in a more formidable manner now - from a small dot 15 years back has now turned into a vibrant side show. The expansive high-rise buildings with all the modern amenities seem to be slowly but steadily expanding its footprints across the country. Talk to anybody in the business today and he will tell you that even emerging tier-2 and tier-3 cities in country now have defined luxury residential pockets which have mostly come up in the last ten years.
A report earlier released by Anarock Property Consultants had earmarked launch of 45,000 luxury residential units in FY'16 in the top 9 cities, constituting almost 21% of total residential launches. Bengaluru was leading the pack with 30% of luxury home launches, followed by Mumbai with 17% share. During FY 16, luxury homes had accounted for 17% of the total residential sales in the country. And the segment is expected to go past 20 percent or one-fifth of the total annual residential sales mark very soon. "The Indian real estate market will almost double to $180 billion by 2020 from the $93 billion it accounted for in 2014, thereby accounting for 13% of the GDP compared to the current 5-6%. Luxury housing constitutes almost 4-5% of the total real estate market and with overall pie increasing, share of luxury housing is bound to increase," the report had further underlined.
Several reports from global real estate consultancy firms are pointing at northward movement of this segment in India, probably at a more agile pace in the coming years rather than the traditional slow and steady mode of the past. And more than anything else, the push is slated to come from the rising volume of millionaires in the country. "It is a hard fact that within the Asia Pacific region, India has the fourth-largest population of millionaires with around 2.36 lakh individuals who fall firmly in the high net worth category. And with every passing year, more Indians are joining the ranks of the wealthy and are automatically on the market for luxury homes," says the chief of a noted realty consultancy firm while adding that with RERA and GST in place, the segment is poised to display more buyont growth than ever before.
It is no secret to anybody that the demonetization impact had triggered a marginal slowdown in the luxury housing sales last year. But analysts are predicting a significant turnaround from this year now that the economy seems to be in a more stable mode. With the likes of Godrej Properties, Adani Realty, Lodha Developers, Oberoi Realty, K Raheja Corp, Sobha Developers, Four Seasons, DLF, Central Park, Sunteck Realty, etc being in the forefront (clearly top of the pyramid players) driving the luxury homes segment, the show promises to get more interesting.
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