While the real estate sector is ringing with profits thanks to the nouveau riche investing in luxurious homes, real estate developers too are taking a keen interest to dwell into this segment
Rampant urbanization in most of the metros coupled with extravagant real estate properties are luring in a major chunk of the cosmopolitan crowd who now wants to own homes that match their lavish lifestyle. According to recent reports the ultra-luxury segment in cities like Bangalore, Pune and Delhi NCR has increased by many folds. With the demand for such extravagant condos increasing day by day, it doesn’t come as a surprise to see major real estate developers shift their focus to this sector.
State-of-the-art amenities, owning generous living spaces along with exclusivity are some of the factors that are attracting the affluent. While the real estate sector is ringing with profits thanks to the nouveau riche investing in luxurious homes, real estate developers too are taking a keen interest to dwell into this segment.
HNIs (High Net-worth Individuals) and upper middle class individuals are now disposing their incomes to own luxurious homes. The desire to own a home that matches their lavish lifestyle could be one of the motive that is driving this trend. Although the definition of luxury might differ from one builder to another- opting to own a house in the heart of the city where prices are skyrocketing or investing in a generous villa in the suburb along with all the opulent amenities brings about a sense of exclusivity that is pushing individuals into this segment.
Although the developer is under constant pressure while delivering such homes, they are not shying away from experimenting with this segment. Concept infrastructure like the Emaar MFG’a Marbella in Delhi is one ultra-luxurious residential project that offers Spanish inspired villas that start at INR 12.5 crores. Another much talked about project is the Adarsh Group’s Palm Meadows in Whitefield in Bangalore. Spread across 100 acres of land, the residential project has 570 Victorian inspired villas that are sited to be the country’s most expensive residential project.
Apart from the metros, Tier I and II cities are soon becoming hubs for ultra-extravagant homes. Developers here fetched high profits in their previous projects and are now coming up with their second installments of expensive homes. Unitech’s first project was a hit amongst the rich and the builders are back with their second project in Gurgaon.
Although most of the metro’s are considered to be a safe market for the luxury segment as buyers are not dependent on investors, they are neither influenced by home loans so the sector is largely dependent of personal savings. However, a major chunk of Mumbai’s luxury homes are unsold. According to data more than 50% of the ultra-luxurious housing units remain unsold. Skyrocketing prices, huge investment and uncertain deadlines are some of the factors that are leading to the downfall of this segment.
Still some developers are willing to take the plunge as the wealthy still want to invest in homes that reflect their social status. And with the demand of ultra-luxury homes increasing at an unprecedented rate, developers are now too busy catering to the premium home’s needs.