With the increase in the purchasing power of the Gen Y and especially in cities like Bengaluru, Gurgaon, Noida and Pune the concept of luxury home is picking up at a faster rate. The IT companies pay their employees a fat salary which makes them go for second homes or multiple properties. Today’s young buyer may be bored staying in generic homes and may look for something extra. They have that extra purchasing power too. This makes the developer to think anew and cater to the demand of the masses and construct more of luxury homes. In cities like Bengaluru, Delhi, Mumbai, Chennai, Delhi and the NCR the demand for such homes are increasing at a rapid pace, opines the market watcher.Luxury Homes - The concept:
A luxury home is a home which would be similar to a plush hotel and is in great demand. These homes are exclusive and certainly have special features with their advantage in location, design and functionality. An example would be a villa on the coast line of Mumbai with facilities like speed boat pick up can be termed as luxury home. Another example would be a home with a nine hole golf course crafted in a special architectural design.
The market watchers observed that most of the cities are witnessing a surge in the super luxury segment which is even more luxurious than the homes of the luxury segment. These super luxury Concept homes have additional features than just the luxury ones.
The increasing demand for homes in luxury segment in India:
There is an increasing demand of homes in the luxury segment throughout the country. The increased rate of urbanization and the increase in the number of the High Net Worth Individuals (HNIs) have led to the increasing demand of luxury projects in India. The country has the most growing number of High Net Worth Individuals (HNIs) in the world with the figure hovering around 20 percent. The realtors remark that one of the main reason of the demand of luxury projects are the increasing number of HNIs in India. The statistics and various surveys say that about 40 percent of the investment portfolios of the HNIs are being absorbed by the realty sector.
The other reason is the rapid urbanization and the investment by the NRIs in the country’s real estate. The trend watcher remarks that these luxury homes are catering demand from the high end investors and the end users which are increasing in number.
The recent trend:
Cities like Bhopal, Dehradun, Indore and Amritsar are also dotting with studio apartments and concept luxury homes. This is becoming even more with the increasing pace of NRI investment in India. Places like Goa, Kasauli, Lonavla and Kerala also are witnessing projects for the ultra-rich. The ranges of the prices of these projects vary from Rs. 5 lakhs and above.
The investment by the NRIs and increasing the projects by developers like Shobha, Dreamz GK, Mantri has added fuel to fire in increasing the rate of consumption of luxury projects in India. The data points out that there is an increasing number of NRIs who wants to come back to India and settle again. This along with the other NRI investors is increasing in number which is responsible in the renewed demand of luxury and super luxury homes. The government has also amended the FEMA and has relaxed NRI investment rules and rules regarding Foreign Direct Investment to boost the investment spree which is again an additional factor for the demand of this sector.