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The luxury housing market will scale greater heights in 2022

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In addition to altering people’s lives and attitudes, the coronavirus pandemic has fundamentally altered businesses and the way they operate. This is not exclusive to the real estate sector. One of the reasons is that after the pandemic, the concept of home ownership has resurfaced, which has greatly boosted the business as a whole.

Additionally, larger, more spacious homes are currently in vogue, in part as a result of social distancing conventions that were put in place due to the circumstances we found ourselves in and the rise of the work-from-home (WFH) culture. acronym in English). The elite class and well-paid professionals, for whom money is not a concern, have increasingly come to favor these larger, better, or per se luxurious residences, complete with a host of amenities, making their ideal paradise a reality. .

Another factor, which is associated with the pandemic, has recently given a boost to luxury homes. Given the uncertainty that has permeated people’s lives, united families and older adults have formalized the distribution of their assets, which has led to a significant supply of expensive housing entering the market, especially in Delhi, Mumbai and other metropolitan areas.

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So it was no surprise to read reports of business families, start-up founders and senior executives spending between Rs 50 crore and a staggering Rs 1 billion in recent months to buy a residence for themselves. According to a joint report by India Sotheby’s International Realty and CRE Matrix, luxury home sales in Mumbai and Pune reached their highest level in four years in 2021 and may set a new milestone in 2022. A quarter of high-income people net worth (HNI), according to another luxury prospect survey conducted by Sotheby’s, bought real estate during the pandemic. As many as 67 percent of people surveyed indicated they were interested in buying a home in 2022, citing lifestyle improvements and lucrative financial prospects as the main reasons.

Since 2020, according to most real estate experts, discerning buyers have preferred to invest in luxury residences over other asset classes or high-end commodities. The sale of luxury homes, villas and bungalows has increased dramatically across the country as a result of this behavioral transformation. The idea of ​​luxury housing has undergone a notable change since the pandemic, which is a significant aspect that affects this situation. Buyers now prefer homes that offer adequate space for a study room, fitness area and other leisure activities, as well as quiet locations with large open and green spaces. Hybrid and WFH work cultures have been expanded to include the requirement of owning a home that can double as an office when needed.

Demand for luxury homes has also been greatly boosted by the resurgence of NRI investment in Indian real estate. An analysis found that NRI’s real estate investment totaled $13.1 billion last year and is projected to rise by 12% this year. These NRI buyers prioritize finding a connected living environment that offers a variety of luxurious places to live, work and play. Your aspirations are perfectly matched by the variety of luxury home options the country has to offer.

It is worth noting an investigation by the ANAROCK real estate consultancy that details the strength of the luxury market in the country. Real estate revenues from the seven major cities increased by 71% year-on-year in 2021, with the premium segment (priced between Rs 90 lakh and Rs 2 crore) accounting for 25% of all sales. If recent trends are any indication, the situation is expected to improve a lot and 2022 will see a further boom in luxury homes.

(By Yukti Nagpal, Director, Gulshan Group)

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