Several studies have depicted a smooth uptick in the launch and sales of luxury residences and condominiums, often surpassing pre-Covid sale records and representing luxury homes as a sole category that has quickly paced up its speed and charm in the property markets. The National Capital Region continues to be a luxury realty powerhouse. The recent Anarock report highlighted a 10% increase in housing sales in Gurugram during the Jan-March 2023 period. The credit goes to the strong luxury home demand in the region. Independent Floors and Plotted Developments are currently driving the luxury real estate demand in Gurugram.
As a matter of fact, luxury real estate has also undergone a diverse transformation in the last decade or so, with an imminent rise in luxury homes of various price categories, starting from Rs 1.5 crore and above. Strong positive sentiments also play a significant role in spiking luxury real estate investments. The diverse nature of luxury homes and price ranges are growing parallelly with the elite home-buying class. Luxury real estate buyers include self-driven and prosperous millennials, high-net-worth individuals like start-up founders, CXOs, entrepreneurial class, and business-class wealthy women nowadays.
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Due to the expansion in uber-luxury residential options and the depreciating Indian rupee value, NRIs are also foraying into luxury real estate investments with NCR as one of their top choices. The luxury home-buying population possesses easily disposable income, generational wealth, investment bandwidth, and market cognizance to make risk-free home investments that assure high ROIs and asset consolidation. It is one of the practical reasons why luxury real estate may never see a demand downslide as the end-users are unfazed by crisis and economic uncertainties, because of their material possessions and advancement.
The sentiment surveys are also elucidating the surge in demand for bigger homes. According to the conclusions of the CII-ANAROCK report ‘The Housing Market Boom’, 42% of total survey participants would like to settle in 3BHKs, and 6% prefer homes bigger than 3BHKs. Industry experts are of the opinion that the penchant for bigger homes is also favoring luxury real estate growth in NCR, especially Gurugram. Luxury Independent Floors are prime offerings in Gurugram property markets. It offers a mix of privacy, individuality, and voluntary socializing opportunities which most millennials and HNIs are batting for. Developers are also infusing wellness features such as Yoga and Meditation Lawns, Gyms, Clubs, and Mental Wellness rooms in luxury projects which is appealing to a sizeable section of homebuyers who are planning to invest in luxury homes with long-term permanent settlement in their minds.
Buying luxury homes is not a chimeric dream anymore. It is a lived reality of many people. Luxury homes are known as one of the most valuable asset additions with a low depreciation value and promising future potential. So, investing in luxury homes is not a mindless profligacy, but a prudent investment decision that opens the floodgates of many passive income-generating opportunities.
(By Vikas Garg, Joint Managing Director, Ganga Realty. Views are personal.)
