Rise of Luxury Homes Segment in The Real Estate Market Today

India is blessed with one of the fastest growing real-estate markets in the world and luxury housing is emerging as one of the most vibrant and dynamic segments. It is not only attracting domestic real-estate developers but also the foreign investors. Rapidly growing end-user demand, increased aspirations, and changing lifestyle are the factors effectively attributing towards the growth of luxury housing sector in India. Luxury remains the fastest growing segment in residential housing market. Fuelled by strong growth in number of individuals with high net worth who usually do not take loans for purchase, the high interest rates did not have any impact on demand for luxury residential housing.

Gurgaon, a key market in the luxury residential segment, is home to a number of big companies and their executives. This has fuelled a demand for luxury houses. The most sought-after destinations are Golf Course and Golf Course Extension roads. The upcoming destinations are New Gurgaon and Sohna road. The transparency brought in by the Real Estate Regulatory Act (RERA) and the GST has helped the sector including the high-end segment.

Exposure to cosmopolitan cities globally through education, travel and work, have been instrumental in shaping the housing preferences of home buyers who seek modern environs, community living and the latest amenities, while also maintaining exclusivity and privacy of their residence. In terms of investment, the domestic luxury realty market is also a favoured destination for the Non-Resident Indian (NRIs). A lot of the buyers in the segment actually purchase properties in Gurgaon to invest or park their funds with an aim to liquidate the property in future. Also, a significant amount of the demand for luxury homes in Gurgaon comes from investors geared towards rental income. Gurgaon has, in fact, emerged as a well-defined market for investors focused on luxury homes, which accounts for the steady supply of rental options available in the most desired locations. People buying luxury homes come from high income groups who are able to finance & purchase property from their own resources. Moreover, they are also willing to buy properties at higher prices.

Mr Bansal from M3M India in an interview to The Daily Tribune opines, “A luxury property creates a much higher incremental value in comparison to a product in the mid-segment. For example, if price in the mid-segment grows from Rs. 5,000 to Rs. 8,000 per square feet over the period of 5 years, during the same period, the price of a luxury property would have risen from Rs. 15,000 per square feet to Rs. 25,000-30,000 per square feet.”

M3m India, has quite a few luxury properties in Gurugram. Built by UHA London M3M Latitude is situated at a prime location of Sector 65, Gurgaon is a residential tower reaching a height of over 160 meters. M3M Golf Estate is an ultra-luxurious project of golf themed residential condominiums. M3M Golf Estate has been awarded as “the luxury project of the year” 2019 (North) by ET 7 Stars of the Industry Awards. M3M Polo Suites brings limited editions of Luxurious Polo Suites with international look and feel. M3M Polo Suites is designed by the world-renowned architects – ARCOP and Interiors to be done by the best in the world. As a result, luxury branded residences such as Trump Towers definitely do wield considerable demand by ultra-HNIs in the Millennium City of Gurgaon. In fact, aspirational developments under the Trump brand also play a significant role in uplifting the profile of the overall location and its surroundings, thus changing the image and indeed future landscape of the entire region.

The major factors for a customer of luxury apartments, are location, amenities and the niche provided rather than the price as buyers are mostly affluent people. Exclusivity and social refinement are the major considerations for the buyers in this segment. Traditionally luxury meant prime location and good social infrastructure and amenities. Now, it is not limited to swimming pool and club in the society. Builders, in order to stand out in the market, are bringing in new technologies, impressive designs and latest architecture. They are also collaborating with internationally acclaimed architects and designers. Krisumi Corporation has come up with their brand-new mega Indo-Japanese residential project called Krisumi Waterfall Residences. The development is a joint venture between India’s Krishna Group and Japan’s Sumitomo Corporation. The project will also feature a high-end retail mall, education institutions, a premium hotel and premium office spaces.

Gurgaon offers a good choice of luxury housing, with a number of luxury housing projects that are either operational or nearing completion/under construction. These high-end luxury apartments boast of world class amenities for their residences. They include:

• World-class educational and healthcare facilities
• Presence of high-end malls, shopping centres and multi-cuisine restaurants that offer food of all major world cuisines
• Good MRTS (Rapid Metro) system which has massive expansion plans
• Proximity to airport
• Rapidly growing infrastructure
• Facilities like voice activated locks, climate and temperature control, smart air-purification systems, IoT devices, and more
• Green homes and sustainable living, are also becoming a popular choice for Indian customers

Emaar Digi Homes Gurgaon is a new residential project by Emaar India Developer offering 2 & 3 BHK Luxury Apartments with an automation system that you can control by Voice & Touch Command. Other home automation specifications include, bio-metric authorization at the main door, video door phone, smart mood lighting, ac’s, curtains, tv & appliances, smoke & gas leak sensors in kitchen etc.

The luxury homes preferred by high net worth individuals (HNI’s) in Gurgaon are spacious apartments with ample daylight exposure, high end fit-outs, full power backup, well equipped swimming pools, gyms, library facilities, etc. As a rule, luxury developers in Gurgaon have pulled out all the stops in outfitting their offerings with world-class interiors and amenities. With joint ventures with international and branded players, developers in Gurgaon are taking no chances at all with the aesthetics of their high-end offerings, and have tied up with globally reputed design firms. Reputed developers such as Ansal, DLF, Sobha, Chintels, M3M, Godrej, Raheja, ATS, Ireo, Vatika, Puri, Assotech, Supertech, Tata Housing, etc are coming up with numerous projects in the luxury segment.

Ireo, joining hands with hospitality chain Hyatt Hotels, has announced Grand Hyatt Residences in Gurgaon. The project will offer exclusive apartments that enjoy hotel-like facilities like valet service, concierge, laundry, in-residence dining, etc.

Sobha Developers, in association with Chintels Group and QVC Realty Co., is developing an ultra-luxury villa community project named, International City, in Sector 109, 106, and Sobha City 108 on Dwarka-Gurgaon Expressway.

Today, location is not the only defining factor of luxury real estate. Western concepts of penthouses, condominiums and contemporary residences, are fast catching on in India’s luxury residential market. Homes with a high component of automation and integration of technology, such as mobile app-enabled switching on and off of household appliances, drapes and security, are now increasingly becoming synonymous with luxury. Equally popular are exclusively designed residences from international designers. It is not uncommon to find apartments with branded gymnasiums, spas, salons and concierge services in Gurugram, which are a class apart. For the corporate honchos and social climbers, living in a luxury apartment complex comes with additional perks, as they get a chance to expand their social circle and network with people from a similar socio-economic strata.

Gurgaon has been observing a healthy demand in luxury residential property. It offers good employment opportunities, as it is a hub for numerous MNCs, IT and IT-enabled services, which is also driving real estate demand. Proximity to Delhi and IGI Airport, surrounding industrial areas, Metro rail network, excellent connectivity, better infrastructure and good transportation facilities have also added value to Gurgaon real estate. Gurgaon is likely to stay end-users’ and investors’ favoured investment destination in Delhi-NCR as it promises good returns along with a safe environment.