Luxury,the new housing paradigm

The economic boom and the resulting increase in disposable income has led Indians to acquire tastes in luxury.

The economic boom and the resulting increase in disposable income has led Indians to acquire tastes in luxury. What began with top-of-the-end cars,jewellery,timepieces and fragrances has now come to include property too.

The demand push is coming from high net worth individuals (HNIs) who number around 85,000 and their ranks are increasing exponentially. This segment of buyers seek exclusivity that goes beyond luxury to suit their tastes.

The one sector that is eyed by HNIs is real estate. Despite the ups and downs that the realty market has witnessed,the sector is seen to be most evolved in addressing the ever increasing specifications and requirements of its upwardly mobile customers.

Real estate developers are gearing up to cater to a niche clientele with luxury homes. A colossal house in the centre of New Delhi or an ultra-chic apartment somewhere high above in one of the world’s most happening cities is not what everyone thinks of when they imagine their vision of the high life. Luxury,therefore, cannot be confined to a single definition.

The idea of opulence is relative to people’s situations,and for some,the concept merely includes another bedroom,perhaps a back yard,a wide terrace and maybe a swimming pool for the kids. However,it is still true that nearly everyone agrees on extravagant designs and adornment as must-haves when they envision their dream house.

Luxury housing allows buyers to get into specific details,ranging from the colour of marble flooring,silk bed sheets to size of television screen according to the room size. In addition,there are developers and interior designers that cater to this segment. Not only amenities inside the house,but also the facilities provided by the developer play a significant role in decision-making.

Add-ons like club houses,spas,day-care centres,mini golf course,centralised security systems etc. are some of the attractive benefits that developers are using to allure customers into investing in the project. After all luxury is also about spending quality time with your family and money well spent ultimately converts into complete customer satisfaction.

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Some developers offer space and the opportunity for buyers to make final decisions on what goes in to their home. The real driving force behind the increasing demand for luxury housing is,the new rich: businesspersons,corporate executives,NRIs looking for an investment in their homeland.

There was a phase when the market witnessed a slump and the high-end housing segment was hit resulting in a shift in focus towards affordable housing. Times have changed and the focus is back on the luxury-housing segment. There is demand and the markets are both looking upwards,specifically,the demand for luxury housing abound in Delhi and its satellites like Gurgaon and Noida.

According to a report of the realty consultancy Cushman & Wakefield,about 60 per cent of total estimated pan-India residential demand by 2014 is expected to be spread across India’s top seven cities,with tier-I metropolitan cities such as NCR and Mumbai expected to account for approximately 40 per cent of total demand. However,the demand for luxury housing in tier II cities has also surged in the past few years and definitely has a long way to go in future. Prices for luxury homes are certainly lower in smaller cities,not because of difference in the quality of amenities,but because of a difference in price of land. The upcoming towers with luxury amenities have created an interest among consumers have a slice of the pie. Thus,it is apparent that the real estate market is taking giant leaps to bring in luxury to the increasingly discerning home buyer.

The author is joint MD,Chintels India