Luxury housing in Delhi-NCR has been drastically altered in recent years. It has moved from representing only grandeur and extravagance, to now embodying a refined aesthetic with unparalleled experiences, cutting-edge amenities, and unique services. The luxury real estate sector is always evolving to meet the evolving needs and desires of consumers for a more refined lifestyle.
This new definition of luxury housing involves extra layers of protection and comfort, as well as personalized services and carefully designed experiences. Consumer habits have been transformed drastically due to changing demographics, higher usage of technology, and escalating income levels. These have been the main encouragements and drivers of the new way of life. Another major growth driver is the return-on-investment luxury homes provide. Not only this, but these homes also promise a great rental income.
New Generation driving the demand for Luxury Housing
Heightened demand for luxury homes from the new age generation has been observed in the present day. This is due to higher levels of income, exposure to global living standards, and urbanization. This generation tends to opt for lavish home designs with the most up-to-date features, special experiences, safety, and well-being. These new-age consumers are investing a lot of money in acquiring their dream homes that meet their aspirations. It is predicted that this trend will cause the market to reach new heights.
A demand for larger areas has been spurred by the emergence of hybrid working environments
COVID-19 has spurred a heightened desire for more spacious homes with dedicated workspaces. To make WFH more comfortable and productive, buyers are seeking out lavish abodes with multiple features and larger offices. As a result, individuals are now placing a greater emphasis on indulgent housing as an investment.
Tailored Solutions through Mixed-Use / Integrated and Gated Condominiums
The construction of mixed-use or integrated gated condominiums is planned with the intention of being self-sufficient. Post-Covid, developers have highly emphasized proper governance and infrastructure which are now essential for the successful functioning of these condominiums. The “Live-Work-Learn-Play” concept is incorporated into the design, which allows for easy access to basic necessities such as markets, hospitals, schools, and workplaces. Such developments help a buyer to have easy access to all the necessities in a few mins. Dwarka Expressway in Gurgaon has lately emerged as a location for such Tailored Solutions.
Importance of Locality-Connectivity of new development projects
Developers now understand the high importance of entertainment, shopping, sporting areas, and outdoor areas such as parks and trails being within walking distance. Developers these days are now more invested in funding and creating such projects.
New Developments in Gurgaon-Delhi serve as a prime example of how new developments need to provide key access and connectivity to cater for the buyer’s need of being able to travel throughout without hassle. Prime examples are the developments at Sector 106 that are being constructed near the newly under-construction Dwarka Expressway which will shorten travelling time to key locations such as IGI Airport and to the heart of New Delhi to mere 20 mins. The announcement of Gurgoan Metro has also excited prospective buyers to invest in the areas of NCR as public transport will be available within a few meters of their properties. Areas in Dwarka will now also be housing Embassies and important Governmental properties, creating a new VIP environment in Delhi-NCR.
Rising NRI Investment in Luxury homes
The growth of the market has been bolstered by the increased inclination of HNIs and NRIs to invest in luxury housing. According to a survey conducted by India Sotheby’s International Realty, a greater number of HNIs plan to purchase luxury real estate over the next two years. On the other hand, NRIs view this as a great opportunity to invest in larger properties in their homeland, facilitated by their government’s assistance and improved buying power. The market saw significant NRI investments in 2022, especially in homes with higher ticket sizes, due to the country’s currency’s declining value against the US currency. According to the report, the NRI segment has grown by 33%, with five countries accounting for the majority of demand: the United States, the United Kingdom, the United Arab Emirates, Australia, and Singapore.
Aspiration to upgrade one’s lifestyle
Aspiration to improve one’s lifestyle is a major factor driving growth in the luxury home market in Delhi-NCR. This includes factors such as comfort, security, status, technology, and having neighbours with similar values and interests. The desire to upgrade living standards and enhance one’s quality of life is a key motivator for individuals to invest in luxury homes.
While overall interest in homeownership has increased, the luxury sector has over-indexed. Homes priced above Rs 2 crore and Rs 3.5 crore have grown at a faster rate. Despite rising home loan rates and property prices, homeownership sentiment remains strong. In recent times, several factors have added up to the remarkable growth of the luxury sector. It appears that, when compared to the global market, the Indian real estate industry will keep up its positive energy and trends in 2023 due to the increasing request for luxury housing and the motivation of purchasers to invest.
Source : FE