How will Luxury Real Estate Market pan out in 2021-26?

The Luxury Real Estate market over the span of the last few years has witnessed growth in demand due to the increase in the number of high net worth individuals in our country. As per a study published in 2019, India boasts of 2,697 ultra-net-worth individuals (each individual with $30 million’s worth).

The growth percentage was 118% between 2013 and 2018. It was expected to grow by another 37% between 2019 and 2024. According to the latest Wealth Report from Knight Frank, India had the largest growth in the number of ultra-net-worth individuals in 2018. Bangalore is expected to be the leading city in terms of UHNI growth. Such figures are clear indicators of the potential, luxury housing holds in our nation.

This year trends show a high probability of a plummeting scenario for this market in terms of prices. New launches are put on hold. This will make the luxury home developers focus their utmost attention on driving sales for RTMI homes. The luxury segment is also likely to see a transition in terms of location and amenities offered for the upcoming years.

The plan for Post-COVID years will be more towards less populated locations on the peripheries of cities, preferably with scenic views or sustainable living options. This newly incited demand for RTMI homes has driven realty stalwarts to customize their spaces as per the new standards of integrated living backed with never seen before offers.

Organized living is likely to pave its way in Tier-II cities as well, as a result of the migration happening. Considering the North India market, satellite cities like Noida and Greater Noida demand and sale of RTMI units have been the highest amid the lockdown.

The primary reason being low-interest rates, market conditions, strong asset value, a great time to invest for buyers. The most recently announced ambitious project of Film City in Noida will establish the city as one of the biggest business hubs of North India. State Government has also announced the construction of an International airport which will make Noida an attractive realty hotspot for NRI buyers.

The buying pattern of HNIs and UHNIs is known to real estate players. They don’t stop at investing in one property but continue to expand their assets as a status symbol and also because of the high future returns it offers.

Luxury players who have a legacy in developing such projects will continue to be the preferred choice of the buyers in purchasing a luxurious RTMI home as well, due to their keen eye for selection of furnishings, embellishments, and other ornamentation used to make the homes a mark of excellence. Customization in the choice of floorings, furnishings, and other materials is also offered by some developers.

Past few years, luxury home developers have also taken that extra mile effort and collaborated with international designers, engineers, and architects to create unique realty marvels with magnificent aesthetics and state-of-art fixtures.

The luxury projects are known for providing a resort-style living to the people with a host of world-class amenities available on regular basis. This partnership will continue to see an upscale in the next 5 years as the demand from buyers to seek an international experience right in their homes has no reason to be subdued.