Luxury home demand rises despite realty gloom

Tags: Real Estate
Driven by new offerings, greater influx of non resident Indians (NRIs) and changing lifestyles, the demand for luxury and ultra-luxury homes with a price tag in the range of Rs 1 crore to Rs 20 crore, or even more in some cases, is again making a comeback in metros, according to a report.

Despite sluggishness in the real estate sector, a few luxury residential projects were launched in Mumbai, Pune, Delhi and Chennai in October, according to a report by real estate consultancy firm Jones Lang LaSalle (JLL).

“Demand for luxury housing is growing gradually mainly due to the rise in the number of high net worth individuals (HNIs), rapid pace of urbanisation, influx of global lifestyle trends and an increase in the number of NRIs,” real estate consultancy firm JLL research head Ashutosh Limaye said.

For instance, the per unit price at under-construction World One Tower by Lodha Group in central Mumbai has a price tag of up to Rs 50 crore.

“Also, the recent fall in the value of rupee in global financial markets boosted buyers’ interest in investing in luxury housing and encouraged developers to launch luxury and super-luxury housing projects priced from Rs 1 crore and running up to Rs 20 crore,” Limaye said.

The total value of luxury homes, launched in 182 luxury residential projects, offering 25,570 units across the top seven cities of NCR-Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata, in 2008-2012 was around $30 billion, the report said.

“The value of luxury homes will be fuelled by the presence of around 1.53 lakh HNIs, whose numbers are growing at a fast rate, people who inherited wealth and have dynamic lifestyles, as well as those in the newly-rich segment,” Limaye said.

Lodha, Sunteck, Kohinoor Developers, Sobha, DLF and Hiranandani are some of the players who largely cater to the luxury residential segment.

“This is a market where there is demand for everything, from affordable homes for MIG, LIG, as well as the economically weaker section and there is demand for luxury housing too. Changing lifestyles and rising income levels are driving the demand for luxury homes,” the Bangalore-based Sobha Developers vice-chairman and MD JC Sharma said.

Besides, NRIs who wish to return to the country look for homes that will have all the amenities and luxury they need, Sharma said.

To attract buyers, developers are trying out a variety of new products in the luxury housing segment, including Singaporean and American-style apartments, homes that are similar to plush hotels and branded luxury residences.

While Sunteck has tied-up with Disney Consumer Products to launch Disney inspired homes in its Goregaon project, Lodha has partnered with Giorgio Armani to design the apartments and villas in its ambitious project World One, touted as the world’s tallest residential tower.

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