Rising aspirations & value consciousness driving luxury housing-I

By: Ravi Sinha

Track2Realty Exclusive

Developers are outdoing each other in bringing the latest technology, and offering exclusive amenities and luxuries, not to mention the big-ticket designer names. Track2Realty finds the concept of luxury living is increasingly being redefined as the Indian real-estate market matures. There is no dearth of buyers either, provided luxury living is customised with buyers’ profile, taste, choice and needs.

The status symbol that was till recently being measured by the size of the house in most of the cities across the country has undergone a metamorphosis in recent times. In the space-starved Indian cities, the risingaspirations and value for money outlook of the discerning home buyers is increasingly redefining the very concept of the luxury housing where the conventional per-square-foot rate doesn’t apply and instead the entire package is what the developers have to ensure— the home, the amenities, the neighbours, the location and, of course, the social standing that comes with the address.

According to Cushman & Wakefield’s (C&W) annual report “Embracing Change – Scripting the future of Indian Real Estate” major cities in India would see a total demand of 2.3 million units of residential property in next five years. “Of this 16% would be high-end units.”

However, according to an industry estimate, in the past 9 months of 2011 about 80% of the projects launched in Mumbai and National Capital Region (NCR) are positioned as luxury product.

“There are only two ways of making profit; either you increase your volumes or your margins. Developers seem to be taking the easy way out, that is increase their margins by launching only high-end units,” says Pranay Vakil of Knight Frank India.

……to be continued