by Mr. Ashwinder Raj Singh, JLL India
There is real estate & there is ultra-luxurious real
estate. Then there property that is out of bounds for even for the well-heeled,
and the information about it is available only to a handful of privileged
'insiders'.
Such properties come under the category of ‘by invitation
only’ residences, and one has to belong to a particular stratum of society to
be even considered as a potential buyer.
This is a category of luxury real
estate where aspiring buyers must prove their worth to the developer in ways
that transcend the ability to pay unheard-of sums of money.
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| Mr. Ashwinder Raj Singh, JLL India |
What Are 'By Invitation’
Residences?
To put things in perspective, these
special projects are designed after a lot of research about people who can
afford the best and rub shoulders with the Who’s Who of the world, and the
statement they want to make. That statement is about the person, what kind of
life he or she lies and what his or her achievements are. To help such a
person make the desired statement, these exorbitantly-priced projects are
conceived so as to include features and facilities which most of mortals can
only dream of.
Some of the 'by invitation only' projects coming up in
cities like Delhi, Mumbai, Pune & Bangalore are in locations which few others
can afford to live in, private elevators, indoor swimming pools and spas, and
interiors provided by the world's top-notch designers.
The projects
themselves are designed by world’s best architects, and units are
available either as villas or duplexes.
The Defining Selection Criteria...!
The prices of such properties easily cross the Rs. 40-50
crore mark, sometimes a lot more, and their prices tend grow rapidly as this
market segment is still evolving.
However, money is not the only criteria for
ownership of such properties. Developers look for buyers who fall in a very
high social bracket & pursue a lifestyle consummate with that bracket.
They
build such projects for owners of billion-dollar organisations, CEOs and other
such movers and shakers of society, and they seek to create neighbourhoods to
be exclusively inhabited by such individuals.
Benefits To Owners..!
Owners of such homes need to do little more to proclaim their
status. They move into homes with world-class facilities and a level of privacy
and a quality of life otherwise unheard-of in the urban context.
Also, such a
neighbourhood gives them limitless opportunities to further their business
interests, and to grow their repertoire of elite social contacts.
Benefits To The Developer..!
One might argue that this is a very rare customer breed,
and that the small size of this market segment is not worth the effort and time
it takes to cater to it.
However, such developers are looking long-term
benefits far beyond the immediate business potential. Obviously, the profits
from these exclusive projects are phenomenal, but the brand value for a
developer who creates such exclusive dream homes is limitless.
A builder / promoter who
caters only to the mass market and churns out more or less similar projects
cannot appear on the radar of High Net Individuals.
Growth Prospects Of Such
Offerings..!
Indian HNIs are a fast-growing tribe more and more
people originating from modest backgrounds are building businesses from scratch
and becoming millionaires.
For the most successful of these individuals, the
ultimate aim is to join the ranks of the most respected, powerful and
privileged few. In other words, the market for ultra-exclusive, 'by invitation
only' homes may be small, but it is growing - and to cater to this market, a
far-sighted developer definitely will invest effort, time and massive amounts
of money.
In fact, the best strategy for any Indian developer today is to be present
at both ends of the spectrum of the real estate market: the affordable housing
segments as well the ultra-premium one catering only to a handful of buyers.
This market segment may not be poised to grow in double
digits, but the potential for earnings as well as creating a world-class brand
is enormous.
It is only a matter of time before many more of such projects line
up in and around our cities.
About the author
Mr. Ashwinder Raj Singh is CEO (Residential Services) at JLL India
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