DELHI: The rising demand for luxury homes has given a new face to housing concepts in India. Real estate developers are launching an array of luxury projects in metros and peripheral areas, and Tier II and III cities.
The reason for this demand is changing demographics and rising aspirations. Luxury homes are similar to plush hotels and are exclusive as they have special features based on their location, structure and functionality.
The main aspect of a luxury home is its location as most of them are built away from the hustle and bustle of the city. Perhaps, the perfect location would be a secluded area within the heart of the city.
Apparently, most cities are witnessing the growth of “super luxury” homes, which have additional facilities and extravagances compared to luxury homes.
Also most realtors are developing high-end shopping malls that cater to luxury brand retailers. A large number of home buyers are today demanding luxury housing with an array of amenities.
The demand for luxury housing can also be attributed to the increasing rate of High Networth individuals (HNI) and the rapid pace of urbanisation. India tops the list in the growth rate of the number of HNIs. Apparently, the realty sector of India accounts for about 40 per cent of their investment portfolio.
Another important reason for the demand for luxury projects in India can be attributed to the rapid pace of urbanisation. NRIs are also looking at luxury homes as an option. Basically these homes cater to high-end investors and consumers. Naturally, this type of housing has become a requisite for the urban families.
And there are the villas by the beach, on the river front, and in hill stations, all of which are big draws for the ultra-rich. It’s not just the exclusive and healthy environment, all of these projects also sport advanced electronic fittings and fixtures.
Besides the spread of residential projects in Tier II and Tier III cities, there is an equivalent demand for commercial property in these areas. The retail real estate in India is on an upsurge and there is an array of retail markets and shops coming up in these areas at a fast pace. Changing lifestyles too have made a difference with more and more people being drawn to malls.
Owing to all this, developers find these cities more lucrative. Further, they have various options for construction with better returns. Also the developers are witnessing greater investments in these areas compared to metro cities. People prefer investing in these areas because of the projects take less time for completion, and they get better returns. The labour is cheap, markets are safer, and offer a higher yield.
Traditionally in India, property investment was considered a real asset but that has changed . Realtors have portrayed property investment as an element of lifestyle. This in turn has attracted potential property buyers from overseas, the NRIs. There is an increase in the number of NRI buyers in India who are planning to settle down in India as well. Ever since the real estate sector underwent a rapid upsurge, people from various countries have been relocating here.
Owning a luxury home also has tangible financial benefits, especially if one is looking for ways to increase one’s own wealth. Purchasing one’s own luxury home is one of the most effective ways to reward oneself for hard work. The accompanying pride that comes with it isn’t too bad, either. Other people who visit a home will admire it not just because it is beautiful, but because of the work and effort the owner put into the house. This simple method of self-encouragement is a lot more powerful than what most people give it credit for, especially when you lounge in your den and relax.(The author is Director, Olympia Group.)