The frequent restrictions imposed by state governments to curb the spread of Covid-19 infections is likely to push up the demand for luxury properties, both in metros and at holiday destinations, according to property developers and brokerage firms.
Home buyers are now increasingly looking for secure gated communities, open spaces, greens, vehicle-free podiums and play areas for children, they said.
“Covid has brought in extra momentum and people have started preferring horizontal development,” said Kamal Singal, managing director of Arvind SmartsSpaces, which is executing luxury villa projects in Ahmedabad, Bengaluru and Pune. “A lot of HNIs (high net worth individuals) are looking for second homes. Also, holiday destinations and villas on the outskirts of the city are in great demand.”
According to an India survey by Sotheby’s International Realty, the majority of HNIs are proposing to buy property in the next two years, reflecting a strong and decisive turnaround in the luxury real estate segment.
Sotheby’s International Realty said that 67% of the respondents polled in a recent survey said they would look to buy luxury residential real estate in 2022.
According to Amit Goyal, CEO of India’s Sotheby’s International Realty, 46% of the respondents said the main reason for purchasing property during the pandemic is a “lifestyle upgrade”.
The luxury home market in India has grown in size in the last seven to nine years, but during the pandemic, the demand for luxury homes has gone up as buyers are increasingly looking for larger, greener and spacious homes.
“Post-pandemic, people are looking for projects that will provide them with a better lifestyle, while also meeting their wellness needs in a green setting,” said Amarjit Bakshi, chairman of Central Park.
Brokerage firms said that 60% of the demand is coming from people aged over 50 years, and millennials are also showing some interest in investing in premium properties.
“We have seen around a 70% cumulative rise in the demand for premium properties in the last 24 months. Interestingly, of the total luxury real estate responses generated, 20–25% are asking for private gyms, pools, and party areas, which further demonstrates that luxury real estate in India has come of age and is a fast-growing market segment,” said Ankit Kansal, founder of 360 Realtors.
Experts say there is also a spurt in demand for second homes or holiday home properties in cities such as Goa, Alibaug, Shimla, Coorg, Ooty and Dehradun.
“We have more demand for luxury villas in Shimla and Solan in Himachal than for 2/3 BHK flats, and the buyers are from all over the country,” said Sudershan Singla, managing partner, Chester Hills real estate.
Also in demand are farmhouse-style of compounded living in the city suburbs, and luxury residences providing end-to-end facilities, including housekeeping, concierge services, chef on call, and laundry services.
“Changes in consumer behaviour during the Covid-19 pandemic have accelerated the sale of mid-range and luxury homes in Mumbai and across the country,” said Cyrus Mody, managing partner, Viceroy Properties LLP.
According to Karle Infra, which is developing luxury residential projects in Bengaluru, demand for bigger homes in their projects has increased significantly. Apartments with sizes ranging from 5,000 sq ft to 7,500 sq ft are in great demand.
“HNIs and UHNIs (ultra-high net worth individuals) are looking for properties that provide a wholesome living experience. In this regard, we noticed that demand for farmhouses has gone up,” said Nayan Raheja, Raheja Developers.
Source : Economic Times