The demand for exclusive residences offering a distinctive living experience has been on the rise in the Indian market in recent years. Factors such as an increased number of high-net-worth individuals, rapid urbanization, and rising incomes contribute to this growth. The pandemic experience has heightened the desire for home ownership, with individuals seeking more space for work and educational needs.
According to Vivek Rathi, Director-Research at Knight Frank India, even in the mid and premium segments, consumers can tap into additional resources, enabling them to fulfill their desire for home ownership. The luxury residential market in India has witnessed significant growth, with luxury property sales performing well post-pandemic, accounting for 18% of total units sold across the top seven cities in 2022.
Anuj Puri, Chairman of Anarock Group, notes that the bull run in luxury sales continued in Q1 2023, with 25% of total units sold in the high-ticket segment. The demand for luxury real estate is expected to persist, with over 60% of ultra-high-net-worth individuals (UHNIs) and high-net-worth individuals (HNIs) surveyed intending to purchase a property.
The government’s decision to cap capital gains at Rs10 crore in the Union Budget could have contributed to high sales, with HNIs rushing to close luxury housing deals before the financial year’s end in March.
Amit Goyal, CEO of India Sotheby’s International Realty, believes that the post-pandemic revival in luxury home sales could last for a few more years if India maintains economic growth as forecasted by the Reserve Bank of India.
According to a Luxury Outlook Survey by India Sotheby’s International Realty, 34% of HNIs and UHNIs have purchased luxury real estate between April 2021 and December 2022. Additionally, 61% of respondents expressed an interest in buying well-priced real estate in 2023-24.
The survey also revealed that larger homes and open green spaces, along with excellent physical and social infrastructure, were the top reasons for wealthy Indians when choosing a property to buy. Sustainable features gained importance, with 11% of respondents considering them a key factor in their purchase decisions.
The luxury real estate market is booming in cities like Delhi-NCR, Mumbai, Goa, and Bengaluru, with Hyderabad and Pune expected to see consistent growth in the luxury segment. Developers are reimagining spaces to incorporate outdoor areas, and sustainability features are gaining prominence.
Despite rising property prices and inflation trends, the demand for luxury homes remains strong. Investors are advised to have a clear idea of their preferences, consider property type and location, and understand the differences between in-construction and ready-to-move-in properties. Developers are also incorporating sustainable practices to reduce the carbon footprint of projects.
Real estate’s focal point lies in its location, particularly in areas experiencing robust economic momentum.
According to a survey by India Sotheby’s International Realty, the top four locations for real estate purchases, as identified by respondents, are Delhi-NCR, Mumbai, Goa, and Bengaluru.
Amit Goyal emphasizes, “The most significant factors influencing property prices include the property’s location, the surrounding neighborhood, available amenities, connectivity to the city center, and accessibility to business hubs.”
Looking ahead, Hyderabad and Pune are anticipated to witness steady growth in the luxury segment over the next few years. Anuj Puri notes, “These destinations will sustain growth driven by the IT/ITeS sectors, with average residential prices ranging between Rs 4,800 per sq. ft. to Rs 6,150 per sq. ft.”
Isprava has strategic plans to extend its presence in key markets such as Goa, Alibaug, Coonoor, and Kasauli. These pristine locales offer affluent buyers seclusion and privacy.
Dhimaan Shah states, “In Goa, specific micro-markets like Moira, Aldona, Nachinola, Reis Magos, Siolim, and Mandrem are witnessing rapid growth. Another noteworthy area is Alibaug, emerging as a highly sought-after location for the affluent, including those from Mumbai and NRIs.”
