Bangalore luxury realty is worth a billion dollar
Dec 01, 2013
Source : The Times of India


BANGALORE: Bangalore’s luxury housing market has crossed USD1 billion Dollars in terms of supply. The pricing of the projects is in the range of Rs 8,000-33,000 per sq ft.

Who is buying luxury homes?

The Luxury housing market has a mix of investors, equity partners and end users particularly the businessmen, head honchos of MNCs and other HNIs. For investors it guarantees a stable rental yield and appreciation on their capital. Equity partners look for exiting the project post completion and the exits are by way of good profits compared to mid-segment projects. The majority target is the end users who look for state-of-the-art and premium quality projects with limited density and lots and lots of privacy.

How different is luxury housing market from the regular residential market?

There is a lot of scope for differentiation in the luxury housing market compared to the regular residential markets. The following are the factors that differentiate luxury housing market from others:

  • Vastu compliance: A+ or A rating
  • Low density in the project guarantees exclusivity
  • Limited configuration assures that people you share your address with are of the similar financial/social background
  • Larger room sizes and proportionally large living areas
  • Greater floor to ceiling height
  • Open areas such as decks, sit-outs, landscaped terraces
  • Private swimming pools
  • State-of-the-art fitness centre
  • Private lift lobby
  • Natural light & ventilation
  • Extra car park spaces
  • Visitor Parking
  • Concierge Services
  • Driver room
  • Customisation option
  • No common walls
  • In case of villas – The spacing between two villas higher to guarantee privacy.

The supply in this segment

There are various developers, ranging from reputed to first timers, in this segment with their offerings. The edge with the reputed developers is that they have delivered projects in this space earlier and it gives a sense of reliability to the customer whereas for first timers it is purely a leap of faith. In terms of supply, there are close to 2,000 units in this segment within the price band of Rs 5-30 crore (a wide variety to choose from).

What is the exit time for equity partners?

The exit time is certainly longer in these projects as this is targeted at a specific buyer segment and buyers of this segment are very particular about the minutest details. But the consolation is that the profits are good and can be better depending on the project’s proposition.

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