Luxury Housing Is Gaining Momentum In India
Luxury housing is emerging as one of the most vibrant and dynamic real estate segments in India. The growing demand for luxury housing can be attributed to a rise in the number of high-networth individuals (HNWIs), the influx of global lifestyle trends, and growing aspirations of people.
The country's fast-expanding services sector is propelling many middle-income group individuals into the HNWI bracket. The improved business confidence in the country and the recent fall in the value of the Indian rupee in the global financial markets has also boosted Non-Resident Indian (NRI) buyers' interest in India's luxury housing segment.
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The growing luxury housing segment has encouraged many reputed developers to launch projects with all the state-of-the art amenities, including the concierge service, whole home automation systems, temperature-controlled wine cellars, motion detectors, rooftop lounges, temperature-controlled swimming pools, water jet fountains and full-fledged sports arena, etc.
The ticket size of the luxury residential property depends on location and varies from city to city, the price of luxury residential property FY16 started from Rs 2 crore in Mumbai, whereas in Gurgaon and Noida you could get such a unit for Rs 1.5 crore and Rs 1 crore, respectively. The starting price of luxury residential property in Bengaluru, Pune and Hyderabad was close to Rs 75 lakh. However, in cities like Ahmedabad and Kolkata, you could get such units for as little as Rs 65 lakh and Rs 60 lakh, respectively.
Around 45,000 luxury residential units were launched in FY16 across India's top nine cities which was 21 per cent of total residential launches seen across these cities. Bengaluru was the clear leader, accounting for the largest market share in luxury launches during the year.
Around 47,000 residential units were sold across the top nine cities of India in FY16. These accounted for 17 per cent of total sales. The Bengaluru city emerged as the largest contributor to luxury sales in the country, with a share of 29 per cent in total during the year. In Mumbai, localities like Prabhadevi, Bandra, Lower Parel and Kurla Complex witnessed the highest activity. In Bengaluru, Whitefield and North Bengaluru were the most preferred destinations for luxury projects. In Gurgaon, the most sought-after destinations in this segment were Golf Course Road, New Gurgaon and Sohna Road. Recently, Hyderabad showed a great inclination towards the luxury segment, mainly on account of political stability and infrastructure development. In Chennai, the central areas we buzzing with activity in the luxury residential segment.
The rate of growth for luxury housing might be moderate but the demand seems stable. The luxury housing segment surpassed the expectations by offering the best of the amenities and international standards of living; some luxury residential projects in India match the standards of the world's most influential luxury locations like Paris, Italy, Dubai, etc. With growing aspirations, increase in disposable income, changing lifestyles and the expected improvement in NRIs' participation in this segment, it is expected that India's luxury story will soon be showcased across all major cities of the country, instead of being confined to just a few.
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