The demand for
luxury homes in India varies from city to city, and also the definition of the
label 'luxury' for a particular city.
Like, a 2 BHK in
a central location or a location close to major employment hubs in Mumbai, Pune
or / Bangalore would be defined as
luxury based on the location as well as a reasonable degree of good amenities.
The demand for
such properties is considerable, owing to the convenience factor inherent in
the location in terms of closeness to the most important work hubs of the city
and also the value of the addresses.
Examples of such
high-priced locations are Cuffe Parade, Worli, Lower Parel, Dadar and
Prabhadevi in Mumbai and Sahakarnagar, Bund Garden Road, Aundh, Kalyani Nagar
and Koregaon Park in Pune.
 |
| Kishor Pate, Amit Enterprises Housing |
Another
definition of luxury homes on the Indian market is projects with large living
spaces embellished with ultra-modern luxurious amenities.
Since. the land
parcels required to develop such spaces are generally not available in the
larger cities except in the case of redevelopment of older structures, such
projects may not be very centrally located.
Mumbai, Pune,
Bangalore, Delhi, Gurgaon and to a certain extent Chennai are the most
responsive markets for luxury housing today.
Now, the overall
demand for luxury housing is stable. Developers /promoters who come up with
such projects generally tend to have an inner circle of HNI (High Networth
Indiviudals) buyers & investors to which a significant number of units will
be sold.
Investors
understand that luxury homes is not as prone to the negative influence of
recession, since the target audience itself is not dependent on home loans but
operates largely with personal funds.
The investor
&HNI demand for luxury home is
therefore healthy, though the number of buyers who are depend on housing loans
in order to fund their aspirations for a more luxurious life style has reduced
because of the lagging economy.
The marketing
strategy for luxury housings differs from that of houses aimed at the middle
income class. It is more focused on addressing the yen for exclusiveness &
status among those who can afford it.
Apart from word
of mouth among core investors, the advertising for luxury homes is usually seen
in status & lifestyle magazines and airport lounges than in weekly property
supplements.
Many HNI buyers
& investors who look at luxury housing enter the project at the pre-launch
/ or under construction phase and get better rates. However, the prices for
ready-to-move-in luxury homes is much higher, and demand for such units has
naturally decreased in the current economic environment.
Demand from HNI
buyers who purchase these homes for personal use is still healthy, as is the
demand from long-term investors who seek to rent out these units while the
sales market is low and then sell them at a healthy profit once economic
momentum revives.
The future for
luxury housing is very positive in the main cities, but the trend will be
slower in smaller cities with less wealth creation and economic advantages.
About the
author..
Mr.
Kishor Pate is CMD at Amit Enterprises Housing Ltd.
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