JJL recently released a report estimating that strong demand and high-quality launching will propel India’s residential sector to sales of between 290,000 and 300,000. The premium segment has experienced a 22% increase in sales, while the mid-segment price category has dominated sales. Developers are launching projects to meet the demand trend, and sales in the luxury segment have increased by 83% as well. As a result of changing consumer preferences and technological advancements, there is an increasing demand for luxury real estate in India.
Furthermore, the COVID-19 pandemic is also blamed for the striking rise in large luxury homes, as well-off individuals seek livable environments with lots of security and convenience.
The growing affluent class
Last year, 54% of homebuyers in India were millennials, 36 percent of the country’s population, and have an estimated combined spending power of over US $330 billion. As their disposable income rises, they invest in luxury real estate and look for larger homes; as a result, sales of luxury real estate in India’s top seven cities increased five-fold between 2018 and 2023.
According to certain studies, in the past few years, Mumbai, India’s financial center, has produced more millionaires than Romw thanks to the efforts of global wealth managers and private equity firms. Eventually, these emerging young millennials will put a lot of demand on the Indian real estate market.
Similar patterns can be seen in a survey conducted by Sotheby’s International Realty, which indicates that an increasing number of wealthy people– including NRIs — are thinking about buying luxury real estate in India. The growing affluent class’s aspirations for superior amenities, large living areas, unique designs, prestigious addresses, a healthy lifestyle, and a high return on investment are increasing demand for luxury homes amid these developments.
Furthermore, the increase in NRI involvement is indicative of their growing trust in the Indian real estate sector as well as their attraction to investing in upscale and luxurious real estate, especially in Goa, Mumbai, and Delhi-NCR.
The Luxury Outlook Survey 2024 unveils a very intriguing fact. The survey’s conclusions show that most people who purchase vacation homes favor Goa as a second home location.
Let us examine the key characteristics of Goa real estate that both HNIs and NRIs find appealing.
Goa’s stunning location, pleasant climate, and ideal blend of modern comforts and natural living have made it India’s top destination for luxury and ultra-luxury real estate. Residents now emphasize the importance of smart homes and healthy living since these things reflect their social standing and work-life balance. With their safety features and larger living areas, second homes and amenities are now considered necessities for purchasers.
With the opening of the MOPA airport, Goa’s already excellent connectivity is predicted to get even better, resulting in more flights and growth in the tourism industry. Modern healthcare facilities are another factor driving the growth of lavish homes. The future of luxury vacation rentals is driven by sustainability, focusing on intangibles like forging deep connections with clients and protecting the environment.
Many tourists have been drawn to Goa by its undiscovered natural and cultural beauty, and as the work-from-home trend gains traction, more people are looking to relocate permanently to Goa. Prestigious villas, second homes, farmhouse communities, luxury housing, and plotted developments thrive in Sindhudurg and North Goa. This area will remain a popular place to invest because of the strong demand for housing, increasing income stability, and infrastructural improvements.
The profitable Indian real estate market draws in NRIs.
From 2023 to 2028, the Indian luxury real estate market is projected to grow at a compound annual growth rate (CAGR) exceeding 5%. Luxury residential properties have cutting-edge amenities and prime locations. Non-resident Indians, or NRIs, have been investing in India’s luxury real estate at an increasing rate; they entered the market with $13.1 billion last year. NRIs, or non-resident Indians, have been making more and more investments in India’s luxury estate; just this year, they brought $13.1 billion into the market. 20% of all real estate investments made in the nation are anticipated to come from NRIs by 2025.
NRIs should strategically diversify their investment portfolios by purchasing luxury real estate in India, as these assets offer prestige, long-term value appreciation, and a hedge against market volatility. NRIs looking for long-term investment gains and capital appreciation find major destinations like Goa tempting due to their competitive pricing, rising rental yields, and potential for property appreciation.
Modern security systems, smart home technology, wellness centers, and first-rate concierge services are just a few of the upscale amenities that Indian real estate developers offer NRIs to suit their sophisticated international lifestyle. The partnership between premier developers and NRIs demonstrates how sophisticated and globally desirable luxury real estate in India is becoming.
In short, the rising wealth class, which makes up 36% of the population, bought homes in 2017 in 54% of cases, with an estimated combined spending power of more than US $330 billion. The Indian economy is attracting investment, which boosts demand for real estate and raises prices in promising locations like Goa. Due to its outstanding performance in the global economy and its political stability, India is expected to maintain its upward trajectory in the coming years.