Luxury real estate set to rebound in 2023


India’s luxury real estate continues to be one of the growth drivers for the sector. The sector is gaining steam and is expected to register robust growth in 2023. India is a party to one of the largest concentrations of HNIs in the world and this is fueling demand for high-end properties.

In addition, the pandemic has also given a positive thrust, as there has been a significant rise in demand for gated/compounded houses, villas, retirement & second homes (RSH), row houses, etc. After the pandemic, amidst the growing trend of Work from Home (WFH) and homebound schooling, buyers want larger spaces. People who were earlier living in 2/3 BHK now want to shift to bigger homes.

Likewise, people want spacious gated societies with globally benchmarked amenities such as valet parking, rooftop F&B facilities, top-class gaming zones, golf courses, water bodies, wood & nature walks, business meeting rooms, and much more. As there is a growing trend of WFH and Hybrid Working Models, people are seeking homes that give them an elevated lifestyle, ensure overall well-being, and cohesively integrate the new modes of work. People do not wish to commute long distances and want most of the on-campus facilities so that they can enjoy and have good times with their friends and families.

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Rising Trend of RSH culture

The pandemic has resulted in a steep hike in Retirement & Second Home (RSH) and other complementary products such as farmhouses, row houses, etc. Such properties can give a great opportunity to bond with nature. They also fit seamlessly with the WFH and hybrid culture, as one can enjoy work amidst tranquility and peace. They can also give a great escape in case of a future outbreak of the pandemic. Though following the massive vaccination drive, the chances of a future outbreak are minimal, yet it can’t be completely negated and hence owning a compounded property is a prudent step.

In NCR, micro-markets such as Brijwasan, Chatarpur, Aravali Hills are preferred locations for such properties. Besides, the hilly terrains of Uttarakhand and HP such as Mussorrie, Nainital, Dehradun, Shimla, etc. are also popular destinations for such properties.

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In Maharashtra, Lavasa, Lonavala, Alibaug, Karjat, etc. are amongst the top destination for RSH, farmhouses, and related properties. Vizag is a preferred location for residents of Hyderabad, while in the Chennai region Pondicherry and Ooty are amongst the sought-after locations. For residents of Bangalore, Bannerghatta and Nandi Hills are becoming popular second home destinations due to the presence of plenty of greeneries.

NRIs are Pivoting to the Market

NRIs are increasingly pivoting to the category. Already the Indian expat community is one of the dominant players in global high-end real estate and bet big on the markets in Europe, GCC, Singapore, Thailand, Maldives, etc. As Indian luxury real estate is also evolving and the gap with international markets is bridging, NRIs are showing an increased interest in Indian high-end apartments, villas, bungalows, etc. Luxury real estate is also a prudent investment backed by growing demand. It can post smart capital returns as well as recurrent rental income.

(By Subhash Goel, MD, Goel Ganga Developments)

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