Luxury segments are experiencing an all-time high demand in the Indian realty market. Demand for luxury residential segments experienced a remarkable uptick in the Indian realty market. Luxury homes are no longer a symbol of stature for homebuyers. It has now become a necessity for an augmented lifestyle. Post the pandemic tenure, the sense of safety gained paramount prominence among homebuyers. Along with opulent homes, homebuyers are keen on efficient safety features within the residential premise. Millennials and modern homebuyers are shifting from the traditional view of long-term investment to investing in premium integrated townships. The developers are now exploring micro markets in Tier 2 and Tier 3 cities, considering the increasing demand for a luxury lifestyle in an integrated township. These cities provide scope for expansive spaces, optimal land use, and sustainable development.
The real estate sector gained its momentum positively post the pandemic tenure. Through this, the luxury housing market acted as a stimulus to the entire residential sector. The pandemic influenced the need for a safer premise and spacious and upgraded homes. In-house amenities began to gain more prominence. Luxury homes come with a gated community that is classy yet promising for convenience. The demand for luxury homes has increased deliberately since 2019 and will continue to sustain further. Not only local homebuyers but NRIs also have been keen to invest in the luxury segments in India. The luxury segment is distinctive from other residential segments in real estate. It belongs to a niche section of homebuyers that are willing to pay more for a luxurious lifestyle. Factors such as suitable demographics, increasing disposable income, sustained economic growth, and increasing foreign investment have propelled the luxury realty market.
Despite the global disruption and economic slump, the Indian economy continued to prosper. Indian economy achieved 7% growth, and the per capita income nearly doubled to around 1.97 lakh rupees. Moreover, the reformed tax regime will increase the disposable income of individuals and enhance their savings. This financially assists them in exploring new markets and investment options in Tier 2 and 3 cities that provide them with scope for upgraded lifestyle and assured growth. As per Anarock Annual Report, the year 2022 saw robust demand for mid-range and premium properties in the top 7 cities of India. The affordable housing demand decreased as individuals preferred to invest in ambitious properties. There were numerous housing launches in top markets, among which more than 50% were dominated by branded developers. Today’s insightful homebuyers also believe in opting for a property developed by reputed developers with a proven track record. The increased home loan rates and property hikes did not impact the demand graph, as individuals are more inclined towards owning the best-suited property.
The popular sentiment of homeownership and an aspiration for a well-equipped lifestyle boosted the sales of luxury properties. The Mumbai Metropolitan Region saw a remarkable hike in demand. The entire MMR region and Pune witnessed higher registered sales in mid and high-end residential segments. The luxury segments witness around a 7% increase in demand as compared to 2021. Despite the 5-7% of property price hikes, it has rarely impacted the demand and sales in the residential market of Mumbai and Pune. To acquire an upgraded lifestyle and a quality life, individuals opt for spacious homes comprising lavish interiors, world-class amenities, sustainable features, and high-end safety facilities. All these factors have made a favorable base for the luxury housing market to prosper in the coming time.