With a continuous rise in the number of Ultra High Net-worth Individuals (UHNIs), India is certain to witness a spike in demand for luxury housing. Owing to a growing preference for larger open spaces and an all-time low prices, luxury homebuyers will be bullish on investment in the coming years.
Over the span of the last few years, the luxury real estate market has witnessed significant growth in demand due to the increase in the number of high net worth individuals in India. As per a study published in 2019, India boasts of 2,697 ultra-net worth individuals (more than $ 30 million’s worth). The growth percentage was 118 percent between 2013 and 2018.
It is expected to grow by another 37 percent between 2019 and 2024. According to the latest Wealth Report from Knight Frank, India experienced the largest growth in the number of ultra-net worth individuals in 2018. Bangalore is expected to be the leading city in terms of UHNI growth. Such figures are clear indicators of the luxury housing potential of India.
This year’s trends show a high probability of a plummeting scenario for the luxury market in terms of prices. New launches are put on hold. This will make the luxury home developers focus their utmost attention towards driving sales towards Ready to Move-In (RTMI) homes. The luxury segment is also likely to see a transition in terms of location and amenities offered for the upcoming years. The plan for Post-COVID-19 years will be more towards less populated locations on the peripheries of cities, preferably with scenic views or sustainable living options.
This newly incited demand for RTMI luxury homes has also driven real estate developers to customise their spaces as per the new standards of integrated living backed with never seen before offers. As a result of the migration happening amid COVID-19, organised living is likely to pave its way in Tier-II cities as well. Considering the North Indian market, and satellite cities like Noida and Greater Noida, demand and sale of RTMI units have been the highest amid the lockdown. The primary reason being low-interest rates, market condition, strong asset value, and a great time to invest for buyers.
The recently announced ambitious project of ‘Film City’ in Noida will establish the city as one of the biggest business hubs of North India. The State government has also announced the construction of international airport which will make Noida an attractive realty hotspot for the NRI buyers.
The buying pattern of HNIs and UHNIs is known to the real estate players. They do not stop at investing in one property but continue to expand their assets as a status symbol and also because of a high probability of future returns. Luxury real estate developers who have a legacy in developing such projects will continue to be the preferred choice of the buyers in purchasing a luxurious RTMI home. Customisation in the choice of floorings, furnishings and other materials is also offered by some developers.
In the past few years, luxury home developers have also taken that extra effort and collaborated with international designers, engineers and architects to create unique real estate projects with magnificent aesthetics and state-of-art fixtures.
These projects are known for providing a resort-style living to the people with a host of world-class amenities. This partnership will continue to see an upscale in the next five years as the demand from buyers to seek an international experience right in their homes has no reason to be subdued.