How Well Do You Know The Indian Ultra-Luxury Market?
In the recent years, Indian real estate market has given space for several ultra-luxury projects. Because of the booming economy and changing lifestyle, India's ultra-high-net-worth individuals (UHNIs) have shown a keen interest for expensive and luxurious housing. A house in a coveted locality is not enough. The house should have the perfect balance of high standard of living and premium quality of amenities.
There is a 100 per cent increase of ultra-luxury projects. During the year 2007-11, when ultra-luxury projects were introduced in the real estate sector, there were 5,870 units that were launched. Post 2012 it has been noticed that about 11,819 ultra-luxury projects have been already launched. Gurgaon, Mumbai and Bengaluru have witnessed the maximum number of ultra-luxury projects. These Indian cities are home to a larger number of ultra-high-net-worth individuals (UHNIs).
Prices are resilient to alter
During the real estate boom, in the year of 2008, Gurgaon (72 per cent) and Navi Mumbai (69 per cent) has witnessed the maximum upsurge in prices. Because of political ambiguity, Hyderabad has seen the lowest growth (19 per cent). It is to be taken in observation that most of the price appreciation that happened during this period, has now become stable.
Contrastingly, in the luxury segment, the prices during the same period, has deteriorated the most because of investor's measure in real estate sector. If we consider the growth then, Gurgaon (57 per cent) again surpassed in the luxury segment, followed by Pune, Thane (56 per cent both) and Navi Mumbai (55 per cent). In the recent years, the prices in luxury segment have seen a major downfall, whereas the prices for ultra-luxury projects have somehow managed to remain stable.
Tier-I cities are the best and safer places to launch these kind of projects. Due to constant demand for such luxurious housing from tier-I cities, developers are more focused on these locations.
But why the ultra-luxury projects survived?
Ultra-luxury segment offers very limited projects, which targets a very niche set of buyers. Generally, price appreciation is seen in a market where demand and supply is moving through. Ultra-luxury segment is immune to such larger market dynamics.
These projects are very expensive, which is beyond a common man's reach. That is why these units are constructed and delivered based on the restricted area of customer interest. The demand for ultra-luxury project is “in-elastic”. This means – that property price rises or decline have zero influence on the purchasing factor. The ultra-high-net-worth individuals (UHNIs) are always prepared to give the best price for their ultra-luxury houses. The high prices for this segment are largely because of the posh locality, top-class amenities and world-class configuration.
So, it is developer's responsibility to remain persistent on producing ultra-luxury projects across India, which should appeal more and more potential UHNIs. These wealthy globe-trotter individuals have the fascination of having a property abroad as well. That is why the developers in the recent time are bringing more luxurious housing to match up to their world-class taste for ultra-luxury property.
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