2023: The Year That Will Continue To Witness a Boom in India’s Luxury Housing Market
January 25, 2023
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For a long time, the real estate sector in India has attributed a major portion of its growth to its luxury housing market. Although the arrival of the global pandemic brought in a brief era of uncertainty in most sectors, the situation has not been all that bad for the realty industry. Besides, homebuyers have regained the confidence to make property investments now that things are getting back to normal. Not only that, but the demand for high-end homes from top real estate developers in India like L&T Realty has also surged thanks to this restored faith.
The increasing sales numbers in the past few months and the soaring interest in luxury abodes (priced above INR 2.5 crores and above) go on to show that this market is acquiring more and more popularity. Therefore, it is expected that the luxury homes segment in the country will most likely experience rapid growth in 2023. Based on the latest trends and the present real estate market dynamics, premium builders are getting new customers while also retaining the existing customer base by offering them lucrative upgrades.
Factors That Will Continue to Contribute to the Growth of Luxury Real Estate in 2023
Greater demand for second homes
The post-lockdown influence on the luxury housing market has been quite positive, since there has been a considerable rise in demand for retirement and second homes among property buyers. These include gated communities, row houses, luxury villas, as well as a spacious 3 BHK flat in Bangalore and other cities, and also the bigger configuration of 4 BHK apartments.
The trend of hybrid / remote working culture
When a nation-wide lockdown was imposed in the nascent stages of the COVID-19 pandemic, all working professionals grew acquainted with the culture of working from home. Even after the lockdown rules eased, a lot of companies are still continuing with a hybrid working model for their employees. Considering these aspects, many people started searching for homes offering them an upgraded lifestyle which seamlessly blends in with this contemporary way of working.
The demand for high-end amenities
Luxury homes feature a vast array of world-class amenities on their premises, such as gaming zones, swimming pools, gyms, cafes, cricket pitches / badminton courts, etc., valet parking facility, business meeting rooms, retail shopping avenues, and much more. All these provisions are highly sought-after by homebuyers, but at the same time, they also seek to live in the midst of rejuvenating natural surroundings. L&T Veridian at Emerald Isle in Powai, Mumbai, or Raintree Boulevard in Hebbal, Bengaluru, are some fantastic properties that provide residents with plenty of lush greenery and open spaces along with numerous amenities on the campus. These elements together contribute to a wholesome living experience, which is why there is a great demand for premium homes nowadays.
A profit-generating investment
As mentioned earlier, the remote working and homebound schooling culture made many individuals keener on investing in larger residential spaces. For instance, those previously residing in a 2 or 3 BHK apartment now wish to upgrade to a more spacious 4 BHK. Therefore, the luxury housing segment has attracted more and more buyers in recent times, due to the lucrative investment opportunities it presents, with the promise of high ROI. Besides, low housing loan interest rates have also led to the steady growth of this market.
Increased interest of NRI property investors
Non-resident Indians (NRIs) have lately demonstrated immense interest in the nation’s luxury homes category. This interest is all thanks to the evolution of India’s luxury real estate and closing of the gap with global markets. Be it luxury 3 and 4 BHK apartments, bungalows, villas or other properties, luxury real estate investment is being increasingly seen as a viable option by many NRIs to enjoy smart capital returns or recurring rental income.
Thus, all these factors point out that the impressive growth witnessed by India’s luxury housing market this far shall not be abating in this new year either. Since there hasn’t been a decrease in buyer demand, the segment may even possibly see sales figures reaching an all-time high in 2023!