The market for luxury real estate has performed exceptionally well over the past few years absolutely. Premium luxury condominiums, luxury housing or villa projects are going up in the market as fast as hot cakes in India. They are drawing attention not just from local buyers however, with the introduction of RERA within the market and the resultant favorable regulations, increased transparency, and increased consolidation, a rising amount of NRIs are looking at it as a viable option to invest in.
Despite the fact that the Coronavirus outbreak has slowed the investment rush from High Net-Worth Individuals (HNIs) but the rise in the property market has boosted the uber-interest rich’s position investment in the real estate market. Based on a new survey, HNIs and ultra-rich investors are extremely interested in investing in the real estate market, specifically in homes that are worth more than 5 million. While the Coronavirus crisis took place in the late 1990s, the high-income investor class jumped into high-end real estate to satisfy personal needs, not to increase their ROI or appreciation. It was logical to not look into the subject due to the uncertain economic climate. But, as the economy is slowly opening up the super-rich are enthusiastic about investing in luxurious homes. In the event that cities like Delhi and Mumbai are considered as examples 2021 was the year that saw numerous luxury home purchases in India with a value of more than 100 million dollars.
Although the market did experience some pause in the market due to the COVID-19 second wave last year, it swiftly rebounded after the wave had passed and it is believed that they expect it to continue grow rapidly by 2024. It’s not just the property itself that has people moving to luxurious homes and lifestyles, but also the lifestyle.
What is the reason why the market for luxury real estate forecast to increase by 2024?
Let’s look more closely at the latest trends in luxury real estate in 2024 that will fuel the industry’s growth.
A great location that is connected to a pleasant environment, near to the city’s center with facilities, workplaces, and other amenities is an essential factor when choosing an apartment. As much as people want to be connected open spaces inside and around living spaces are vital to individuals especially after COVID-19 to maintain their physical and mental health. The benefits of living in large residences surrounded by nature as well as an ambiance that is pleasant are compelling buyers to buy high-end homes. Many of the most well-traveled people are millennials that have been exposed to the world of luxury to the point that they are willing to pay for extravagant lodgings that offer an ambiance of luxury.
A luxurious property is also sought-after due to its technological advantages. These include home appliances which give the homeowner the ability to control, ease and security, such as camera flashes, security CCTV and biometric gates at each edge in elevators, hallways, and other common areas.
One of the main reasons people prefer luxury homes is because they desire to live a life that is based on the concept of work-from-home but still have the comforts of a luxury lifestyle. With increasing numbers of companies adopting hybrid models or work-from home permanent, houses are now requiring space to accommodate workstations as also, which leads to a rise in luxury living.
Another factor is that luxury real estate enjoys the advantage of being a performance asset meaning that they have a purpose and are growing in value. This is why consumers consider them to be the perfect investment, which will result in a multiplier of profits.
The wealthy are investing in homes due to the vibrant entrepreneurial culture. The monetization of employee stock ownership plan (ESOPs) has reached a record high in the environment of startups. Employees are directing earned earnings to purchase homes in order to make more use of their money, which results in substantial tax savings.
People are focusing more on emotional bonds and are enjoying the knowledge of contributing to the planet. They promote sustainability through the efficiency of their fuels as well as water management and the quality of air. Sustainability also includes homes that have been certified by the highest standards of eco-friendly certifications and can be upgraded to luxurious residences.
Other significant factors have led to the rise of Indian real estate market and, in particular, that of the high-end real estate sector. Lower interest rates on home loans, lower stamp duty, as well as registration fees are a few of the reasons that resulted in a rise in buyers opting for high-end real property. In addition, a rise in family income is an incentive for investing in luxury real estate.
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Luxury Real Estate Market FAQ’S
Q1. Is real estate boom in India?
In the Indian real estate industry is expected to reach 1 trillion dollars by the year 2030. This is an increase from the $200 billion it was in 2021. The sector is also expected it is expected to contribute 13% of the nation’s GDP in 2025. Hotel, retail commercial, and retail real estate are also expanding rapidly, providing the needed infrastructure to meet India’s growing demands.
Q2. Which is the most expensive area in India?
According to the property specialist Anarock, Tardeo in South Mumbai is the most expensive residential area that charges a staggering $56,000 per square foot the average price for homes that are available on the main real estate market.