Growth and demand of luxury real estate in India
Sep 09 2015
Now that luxury real estate has entered the middle class domain, affordable premium projects are becoming the focus of major players
If we talk numbers, affordable housing in low income groups (Rs 7-15lakh) and middle income groups (Rs 30-80 lakh) has witnessed a year by year decline of 50 per cent. Luxury real estate has become the fastest growing sector that covers up to 40 per cent of the investment portfolio of the real estate market. The “talk-of-the-town homes” are no more the business of the super rich, they have also trickled down to middle class buyers. The growth drivers here are Gennext consumers who are better educated, more tech-savvy and better travelled. It is their aspiration for higher standards of living and demand for luxury amenities that is fuelling the increase in the luxury real estate sector.
Growth in urbanisation witnessed by the country in the past decade has been a major catalyst in the rise in demand for luxury homes. Also, surge in job creation and higher savings ratio have increased incomes and enhanced the purchasing power of an average consumer. And with modern families having double incomes, purchasing power has increased all the more.
Exploring further, one of the main factors which led to this shift from affordable housing to luxury real estate is the globe-trotting culture that has exposed the average man to seamless possibilities and international lifestyles. Another factor fuelling this trend is the growth in investment from HNIs (high networth individuals) who are sceptical of capital investment due to economic disturbances and are shifting their huge investment portfolios to luxury realty. Thus, huge NRI interest has also led to a spike in luxury realty.
The growth drivers for this segment are Gennext consumers who are better educated, more tech-savvy and better travelled. They have an aspiration for higher standard of living and demand for luxury amenities thus fueling the increase in the luxury real estate sector.
Over the years, even the contours of real estate transactions have changed radically. These are no longer limited to local brokers or classified columns of newspapers. Real estate players have now conquered a brave new online frontier and found a universe of opportunities out there. By browsing through realty websites, prospective customers can get a holistic view of housing projects and make an audio visual walkthrough a property even when they are sitting miles away or in a different continent altogether. This is the precise reason why online real estate transactions have become popular amongst NRIs who can trust the brands with an online presence much more easily.
“Captivate, convince, conserve” are the three Cs of building customers. And these three Cs can be achieved only when one has an add-on to offer.
E-commerce has greatly evolved in the past few years so much so that it demarcates the leaders and laggards of most of the industries. With the kind of frenzy the internet has caused, survival of a business without a web presence is next to impossible. Excellent tie-ups with e-commerce companies are the best platforms to conduct real estate transactions and an outlook to make your experience worth. But this is only the beginning and there’s a long way before internet can be counted as a real transaction based medium.
Now that luxury real estate has entered the middle class domain, affordable luxury projects are becoming the focus of major real estate players. However, this sector is still at its nascent stage and will take its own time to become a standalone segment. zz
(The writer is founder and
of Central Park)