The recent spurt in the purchase of luxury properties for astronomical prices in Mumbai made headlines all over. But it didn’t come as much of a surprise to most realty watchers as India’s wealthy have been investing in this segment of late, particularly post-pandemic. The trend is visible up all over the country with top execs, high-salaried individuals, start-up owners, NRIs and major corporations joining the race for luxury living.
Ironically enough, the concept of home ownership gained importance during the pandemic, giving a big fillip to residential real estate. Both homebuyers and investors turned their attention towards not just buying a home, but a bigger and better home. There was also intense focus on upgrading the existing living spaces in view of the new normal created by the pandemic. Amid all this, luxury housing witnessed tremendous interest from across demographics.
Long periods of confinement at home during the pandemic-induced lockdowns led to the rise in demand for bigger homes with ultra-modern amenities. Consequently, it also brought in a new definition of luxury. Now, it’s not only about high-end amenities; people prefer homes which provide them with space for a study room, workout area and other recreational activities. The prevalence of work-from-home and hybrid work culture also accentuated the need for owning a house which can also double up as an office. NRIs, too, have started returning to invest in the Indian real estate and that has given a further push to the demand for luxury housing.
As with the rest of the country, the Delhi-NCR market has also seen flourishing of the luxury real estate and within the NCR, Gurugram has become the top choice in this segment. Proximity to Indira Gandhi International Airport, quality infrastructure, strategic connectivity and the cosmopolitan culture of the region have made Gurugram a luxury hotspot. It is also a prominent commercial and business hub and home to several Fortune 500 global companies. With some of the best international schools, hospitals, financial institutions, and retail spaces, in and around, Gurugram is today a preferred destination for NRIs and expats. The Golf Course Road, in Gurugram, with a mix of villas and multi-storey projects particularly attracts the high-end property buyers.
The Haryana Government’s ambitious Global City project, to be developed as a central business district, will be yet another booster for the luxury real estate in Gurugram. Envisioned as a ‘futuristic city within a city’, the Global City will be developed over 1,000 acres of land in Sectors 36, 36B, 37 and 37B along the Dwarka Expressway near Manesar. The state Government has been holding consultations with various stakeholders in this regard and at a recent meeting, leading realtors submitted suggestions on the mix of commercial, residential, and institutional amenities and services that can be developed under the project. They also suggested the development of parks, community and health centres and retail complexes in the city. Once a reality, the Global City project is bound to lift Gurugram’s luxury quotient by several notches.
According to a realty expert, who forms part of the Savills India team, the NCR continues to witness strong demand for luxury addresses and premium developments offering high-class amenities. There is heightened interest for plotted developments, villas in gated communities, standalone bungalows and farm houses, she says. Capital values have started to firm up in select micro-markets in Delhi and Gurugram, and with the current demand momentum, values are likely to see an upward trend, concludes the expert.
The robust potential of the luxury segment is manifested by a recent research report, which says the NRI investment in real estate amounted to $13.1 billion last year and is expected to grow by 12 per cent this year. The NRI buyers, says a realty veteran, look for a well-connected living ecosystem curated with numerous choices to live, work, and play luxuriously. Reports also suggest that even the price of luxury units has become comparable to pre-pandemic rates largely due to the fact that demand for ready-to-move-in luxury units far exceeds supply.
In conclusion, it’s worth quoting an established realty player, who says, the expected rise in the number of HNIs and India’s growing stature as an economic power promises a great potential for the luxury segment. This real estate category will continue to grow stronger and evolve further with increasing applications of technological innovations and fusion of aesthetics with luxury.
