Luxury housing has been the golden goose of the real estate industry for a while. While HNIs are ready to spend any amount to acquire opulence and world-class luxury, developers too do not leave any stone unturned to meet the demands. However, the Government Of India’s push to affordable housing is now showing its affects.
As per ANAROCK, there was a total decline of 41% in the overall new housing supply in 2017 from the preceding year, luxury properties priced over Rs. 1.5 crores saw the maximum fall of a staggering 49%, Realty Myths reported. However, this gloomy picture is not the final word as experts believe that luxury housing is here to stay and will continue to be a fairly important segment of Indian real estate.
Here are the reasons why luxury housing will continue to prevail despite the contrary figures:
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Robust Demand:
India houses 101 billionaires and some 3,30,000 millionaires, as per Forbes list. This number is expected to rise by 190 percent by 2027. Such and similar segment of people aspires to live in high-class homes in key locations, embellished with state-of-art amenities. This segment of people remain unaffected by the market sentiment and just wish to acquire high-end properties.
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Increased Supply:
While affordable housing remains to be the toast of the season, luxury homes still have its corner to shine. In the first three quarters of 2018, this segment’s supply increased by almost 29% across the top 7 cities over the corresponding period in 2017 with MMR taking the lead, followed by NCR and Hyderabad. The pace in luxury real estate may be slow since 2013 but it is now picking up.
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Innovations:
HNIs like to live life King size. There have been many lucrative developments in the luxury housing which keep the momentum going such as theme-based homes to fully-managed homes to designer pieces thrown in as accessories. Such developments continue to create considerable demand for luxury housing from the ultra-rich and also cash-rich non-resident Indians.
Given these trends and findings, it is definitely inappropriate to write off the luxury segment and its future business prospects