Luxury real estate should rebound in 2023
Luxury real estate in India continues to be one of the industry’s growth drivers. The sector is gaining momentum and is expected to register robust growth in 2023. India is among one of the largest concentrations of HNI in the world, which is fueling the demand for high-end properties.
In addition, the pandemic has also given a positive impetus, as there has been a significant increase in demand for gated/compound homes, villas, retirement homes and second homes (RSH), townhouses, etc. . Post-pandemic, amid the growing trend of working from home (WFH) and homeschooling, buyers want bigger spaces. People who used to live in 2/3 BHK now want to move to bigger houses.
Likewise, people want spacious gated societies with world-class amenities such as valet parking, rooftop dining facilities, top-notch gaming areas, golf courses, water features, woodland and nature walks, business meeting rooms, and much more. As there is a growing trend towards WFH and hybrid working models, people are looking for homes that offer them an elevated lifestyle, provide overall well-being and integrate new ways of working coherently. People do not wish to travel long distances and want most facilities on campus so that they can enjoy and have a good time with their friends and family.
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RSH Culture Rising Trend
The pandemic has led to a surge in retirement homes and secondary residences (RSH) and other complementary products such as farmhouses, townhouses, etc. Such properties can provide a great opportunity to bond with nature. They also fit in well with WFH and hybrid culture, as one can enjoy the work in tranquility and peace. They can also give a great escape in case of a future outbreak of the pandemic. Although following the massive vaccination campaign, the chances of a future outbreak are minimal, but they cannot be completely reversed and therefore owning a compound property is a prudent step.
In NCR, micro markets such as Brijwasan, Chatarpur, Aravali Hills are prime locations for such properties. Also, the hilly terrains of Uttarakhand and HP such as Mussorrie, Nainital, Dehradun, Shimla etc. are also popular destinations for such properties.
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In Maharashtra, Lavasa, Lonavala, Alibaug, Karjat, etc. are among the main destinations for RSH, farms and related properties. Vizag is a favorite spot for residents of Hyderabad, while in the Chennai region, Pondicherry and Ooty are among the sought after locations. For residents of Bangalore, Bannerghatta and Nandi Hills are becoming popular second homes due to the presence of many green spaces.
NRIs look to the market
NRIs are pivoting more and more towards the category. The Indian expat community is already one of the dominant players in global high-end real estate and is betting big on markets in Europe, GCC, Singapore, Thailand, Maldives, and more. As Indian luxury real estate is also changing and the gap with international markets is getting closer, NRIs are showing increased interest in apartments, villas, bungalows, etc. upscale Indians. Luxury real estate is also a cautious investment supported by growing demand. It can show smart capital returns as well as recurring rental income.
(By Subhash Goel, MD, Goel Ganga Developments)