India is seeing a historically high demand for luxury real estate, changing the country’s skylines and definition of wealth. India’s luxury real estate market is booming and becoming increasingly alluring. There are properties ranging from grand estates with the best craftsmanship to large penthouses with panoramic views. According to data recently released by real estate consultancy firm Anarock, the average cost of luxury housing units in India, which has a value of over Rs 1.5 crore, has increased by a remarkable 24% this year over last.
This article factors in the reasons behind the growth of the luxury housing segment and looks at India’s dynamic luxury housing market.
Modification of Consumer Behavior
In recent times, India’s dynamic consumer behavior landscape has undergone a significant transformation, with a remarkable resurgence observed in various industries following the difficult lockdown period. In recent times, India’s dynamic consumer behavior landscape has undergone explosive growth in housing market investments. Real estate has been one industry that has grown during this economic transformation. The country’s luxury housing market has grown significantly over the past two years, according to CBRE’s “India Industry Monitor Q1 2023” report. Notably, there was an incredible 151 percent annual increase in the sale of luxury homes during the first quarter of 2023. However, this increase in demand for residential real estate has also resulted in a notable change in consumer behavior, particularly in urban centers like Bengaluru and Hyderabad, where considerations like sustainability and design have become more significant when deciding to buy a home.
Realizing that the market for residential real estate is expanding, developers have started to capitalize on improved architectural design and curb appeal. Developers are responding to the changing demands of homeowners by giving priority to design elements that suit their preferences; this creates a more comprehensive and fulfilling living environment. The expansion of the luxury market in India is indicative of a broader trend in the country’s real estate sector.
Anarock data shows that over the previous five years, the average price appreciation of luxury homes in the top seven cities has been an impressive 24%. On the other hand, the cost of affordable homes has increased by a more moderate 15% over the same time frame.
One of the main factors driving the demand for luxury real estate in India is the growing middle class. People are actively looking for homes that fit their elevated social lifestyle and newfound affluence as this segment grows. The increasing disposable income of many Indians has a connection with the growing preference for luxury real estate. People now have more disposable income to invest in luxury goods and real estate properties, thanks to their higher salaries.
With the desire to live an opulent lifestyle, the demand for luxury residences has experienced a remarkable increase. Mumbai Metropolitan Region (MMR) and Bengaluru have experienced substantial increases in average prices within the budget segment, each by 27%. Bengaluru’s luxury home prices have risen from Rs 10,210/sq.ft in 2018 to Rs 12,970/ sq.ft. In MMR, the average price has increased from Rs 23,119/sq ft in 2018 to Rs 29,260/ sq.ft.
Rising luxury living in India has brought about several adaptable changes that mirror the shifting tastes and aspirations of the affluent. The incorporation of intelligent technology is one noteworthy adaptation found in luxury homes. With the help of voice commands or smartphones, homeowners can now control their home’s lighting, temperature, security, and entertainment systems, enhancing warmth and convenience.
Furthermore, to keep up with resident’s growing environmental consciousness, luxury properties are incorporating eco-friendly features like solar panels, rainwater harvesting systems, and energy-efficient appliances. Sustainable living has become a focus. With developers adding features like rooftop gardens, infinity pools, private theaters, wellness centers, and concierge services, luxury has also come to mean experiencing life to the fullest.
In conclusion, the real estate market is experiencing a profound shift due to the growing need for luxury real estate. This shift has driven prominent developers to revolutionize the Indian residential market by employing innovative design and architecture methods that appeal to current and future generations. Those who anticipate and cater to this discerning market segment will be well-positioned for future success as the industry evolves.