Luxury living: Exploring its popularity in the Indian real estate
As luxury living has expanded its reach on the Indian real estate landscape, more customers are opting for a quality lifestyle to beat the daily blues. In light of a strong economy, high incomes, low interest rates, and massive infrastructure investments, the luxury residential market is booming.
According to a latest study by CBRE, the luxury home sales peaked with 37.8 percent growth between Jan-Sep 2024. With nearly 90 percent of luxury segment sales, Delhi-NCR beat Mumbai and Hyderabad. The real estate experts peg this rise to the aspirational demand of consumers who are looking beyond the normal facilities and services.
Location, connectivity, reputation of a developer, and the quality of amenities provided are some of the factors that luxury homebuyers and investors consider. Sustainability, smart design & smart buildings are the new mantra for the Delhi NCR region, with developers pulling all stops to woo their customers. In the last five years, India has witnessed the growth of more environmentally conscious consumers with pragmatic choices willing to contribute to the welfare of the planet, besides their own. It’s no surprise that this region is becoming more dotted with hotels, wellness resorts, green office spaces and buildings, and smart homes—which incorporate eco-friendly construction materials, green practices, smart technologies and designs.
Some of the factors which are leading to the growth of luxury housing boom are:
• Best-in-class technology: Facilities like round the clock CCTV monitoring systems and security are passe in the modern age. A growing number of consumers are drawn to facilities that combine modern technology with critical needs like safety, security, and sustainability. Latest technology systems such as RFID technology, smart home devices, and improved security features appeal to sophisticated customers
• The age of HNIs: Despite global economic headwinds, India continues to zoom ahead with high disposable incomes and increase of High-Net-worth Individuals (HNIs) as they form a significant chunk of investors in real estate because of their high purchasing power. According to the findings of Knight Frank Wealth report, India has registered a 63 percent increase in HNIs from 2020 to 2024 and the country will have 1.7 million dollar-millionaire households
• Walking the talk on smart & sustainable living: Efforts towards sustainable living, such as the use of energy-saving LED lights, the incorporation of solar technology, and environmentally friendly methods, are also gaining ground with luxury homebuyers and investors looking for more smart and sustainable living options.
• NRI investment: Modern Indian real estate is no longer about tedious registration and documentation process. With sped up digitization, transparency and accountability, NRIs are flocking to India for their slice of the pie in the luxury homes segment. An emotional connection to their homeland is also a big reason.
• Infrastructural push: The addition of flyovers, air connectivity, metro network, construction of roads & national highways is causing the luxury home segment to scale new heights in India.
Interestingly, more and more millennials are preferring luxury homes over traditional living spaces and choices. Homebuyers in this segment are quite interested in wellness spaces, attention to health, personalised architecture that features greenery both indoors and outdoors, and the opportunity to try a variety of sports by taking training from professional sports instructors in games such as golf, tennis, and more.
Millennials who are working away from their hometowns and cities, are heading towards luxury integrated townships because of their community living concept while ensuring complete security and privacy.