luxury real estate

Understanding the 4 Shifts in India’s Luxury Real Estate Market: What Developers Need to Know

In the past few years, the luxury real estate market has changed a lot. People’s ideas about what makes a fancy home have also changed. To keep up with the new desires and needs of buyers who want a more luxurious lifestyle, the luxury housing market is changing too. Luxury homes now come with extra safety and comfort features, in addition to personalized services and unique experiences.

Luxury realtor and content creator, Snehil Yadav says,This shift is happening because the people who can afford luxury homes are changing too. There are more people with higher incomes, and they want to use the latest technology to make their homes even better. All of these changes mean that buying a luxury home now means something different than it did before.”

Luxury home sales have gone up by 18% in the top 7 regions in 2022. Anarock, a company that studies real estate, says that Mumbai Metropolitan Region (MMR), Delhi-NCR, and Hyderabad sold a lot more luxury homes in 2022 than they did in 2019. In fact, these three regions sold about 50,100 fancy homes last year, while they only sold 14,050 homes in 2019.

Let us examine the most important factors contributing to the evident rise of luxury housing and the various factors feeding its prominent growth – 

Hybrid work 

As the world shifts to a more hybrid work culture, people are looking for ways to make their homes more suitable for both living and working. This has led to a surge in demand for larger homes with dedicated workspaces. But not just any workspace will do. Buyers are looking for homes with luxurious amenities and ample room for a comfortable and productive work environment.

In response to this trend, the luxury real estate market is stepping up its game. Builders and architects are incorporating elegant and sophisticated designs, state-of-the-art technology, and an array of amenities that cater to both work and leisure. These homes are not just functional but also provide a sense of luxury and comfort that enhances the overall living and working experience.

With the rise of hybrid work culture, the definition of luxury living has evolved. Now, a luxurious home is not just about the design or location, but also about how it supports and enhances our work lives. As people spend more time working from home, having a workspace that is both comfortable and functional has become essential. This has made luxury homes with dedicated workspaces a gateway to a more enjoyable and productive lifestyle.

Millennials fueling luxury real estate

In 2022, the luxury real estate market played a huge role in driving growth in the real estate industry, and it’s expected to continue doing so in 2023. This trend is changing the way people think about buying a home. People of all ages are starting to see homeownership in a different light, and the younger generation is at the forefront of this shift.

Millennials, in particular, are driving this trend. As they come of age and start to think about buying a home, they’re looking for something more than just a roof over their heads. They want a better standard of living, with all the amenities and comforts that come with a luxurious lifestyle. This means they’re more likely to look for homes in affluent neighborhoods that offer the kind of lifestyle they’re after.

The demand for housing is likely to continue to grow, especially with India’s young and expanding population. As more and more millennials enter the housing market, they will continue to influence the way people think about homeownership. The focus will shift towards luxury homes that offer a higher standard of living and a sense of security. This means the real estate industry will need to keep up with the changing demands of homebuyers, especially millennials, to remain relevant and thrive.

Demand from HNIs & NRIs

The demand for luxurious housing has been growing in recent years, thanks in part to high-net-worth individuals (HNIs) and non-resident Indians (NRIs) investing in upscale real estate. In 2021, India was ranked third in the world for its millionaire population, with an 11% increase in the number of “super-rich” individuals. This has led to a surge in interest among NRIs and HNIs in luxury real estate.

NRIs are particularly interested in real estate in India, whether it’s for their own use, as an investment, or for rental purposes. Many of these NRIs are ultra-high net worth individuals (UHNIs) who reside overseas. This increased interest and trust in the luxury real estate market is likely to propel it to new heights this year.

The rise of NRIs and HNIs investing in luxury real estate has significant implications for the housing market. It means that there is a growing demand for high-end properties, which developers and builders will need to meet to stay competitive. Additionally, the influx of investment into the real estate sector is likely to create new opportunities for job creation and economic growth. As more and more people seek out luxurious living spaces, the market for upscale housing will continue to expand, and the real estate industry will need to adapt to keep pace with changing demand.

Luxury living has changed a lot over time. Nowadays, people want to live in places that have strong internet connections and offer options for work, entertainment, and relaxation. People now prefer personalized services such as maintenance, concierge services, high-end amenities, and excellent security in their luxury homes. These types of services add more value and present investment opportunities for buyers. Buyers also look for larger homes with flexible floor plans, dedicated workspaces, more windows for natural light and ventilation, outdoor spaces, and other conveniences that promote overall well-being.

Homes close to good schools, hospitals, shopping centers, banks, and other facilities are preferred by new-age buyers who want to be part of a global lifestyle and live in a like-minded community.

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