New Delhi [India]: Ashutosh Boghra, renowned real estate consultant has predicted that the millennials will revive the luxury real estate market in India.
The Indian luxury real estate market is receiving a substantial improvement from a growing number of wealthy individuals who are showing a deep appreciation for owning better, larger or multiple homes. It is not just about luxury property, but millennials are very particular about a luxury lifestyle that comes along with the right property and location.
South Delhi is still the most preferred choice for investment. Panchsheel Park, Jor Bagh, Shanti Niketan, Greater Kailash, Hauz Khas, Defence Colony and Gulmohar Park properties provide exceptional infrastructure, good connectivity to other areas and commercial hubs, and higher capital returns stimulus the realty demand. In the metro cities like Delhi and Mumbai, in the year 2021, there were many property deals worth more than 100 crores. Being the national capital, Delhi has been the most preferred destination for the uber-rich. In the year 2021, several deals worth up to Rs 100 crore or more were registered in the capital.
“The previous boom went from 2004 to 2012 with prices going ten times up. From 2014 to 2019, prices did not increase and rather came down by about 20-30% from the 2012 peak. Today, the HNIs, NRIs, businessmen, working professionals and others are actively enquiring about luxury housing to invest in as their second home or to upgrade their living standards. As per the market reports, the luxury housing segment touched dramatic heights in Q1 2022. Registering phenomenal growth, luxury property accounted for 12% of overall sales in Q1 2022, up from 7% in Q1 2019. I highly recommend that this is the right time to invest in a luxury property, especially in the residential real estate segment,” adds Ashutosh Bhogra.
The sales of single-family luxury homes, defined as the top 10% of any given market, climbed nearly 10-15% in 2022, and prices increased 20% from 2020, according to the report. Stock market gains, rising home equity, and work-from-home opportunities have contributed to a massive expansion of wealth and a good amount of affluent individuals who are young founders and earning good money. This—combined with a renewed focus on home for fulfilling a range of needs from security, tech-savvy place, community, work, and wellness—has led to unprecedented demand for luxurious homes with all the amenities.
The housing market, particularly the luxury market, will remain strong. Yes, mortgage rates have begun to climb, and record-breaking price appreciation is starting to slow. However, none of this points to a weakening of the Indian real estate market but rather a cooling of the intensely hot market we’ve been experiencing since the second half of 2020. According to a recent ANAROCK Report, house sales in the top seven cities increased by 71% year over year in 2021, with the luxury sector (priced between Rs 90 lakh and Rs 2 crore) accounting for 25% of overall sales.
The real estate sector is the most resilient, stable, favoured, and secured investment choice and investors are finding the market opportunities lucrative to make a safe bet. According to a recent survey, a large number of HNIs are proposing to buy luxury property in the next two years, forecasting a promising period in this segment.
You can see that luxury condominiums, luxury housing and villa projects are on a selling spree in the country, and more and more NRIs are also seeing it as a lucrative option to invest in. While people seek connectivity, open spaces within and outside living areas are considered very important for people, especially after COVID-19, to maintain their physical and mental well-being. Some of the well-travelled people are millennials who have experienced luxury so closely that they want their homes to be the exclusive ones.
(The author of this article, Mr Ashutosh Bhogra, is a luxury real estate consultant- Contact: 9818968866)