January 30, 2014
Luxury housing has emerged to be one of the most vibrant and dynamic segment of the Indian real-estate industry. The luxury housing segment is gaining momentum with every passing day and holds immense growth prospects for the real estate players. The volume and momentum in the last 5 years was clearly visible in the cities where new jobs were created and infrastructure was robust. Rise in the number of high net worth individuals, rapid urbanization, the desire to adopt global lifestyle trends and the emerging service industries are some of the factors that have pushed the growth and attracted several customers to this segment.
Harinder Dhillon, Senior VP, Sales and Marketing, Raheja Developers differs slightly when it comes to the prospects of the NCR region. He opines, “Primarily Delhi NCR (Delhi, Gurgaon, Sohna, Dharuhera, Bawal and Panipat) are areas which are being focused on for new projects given the potential of this belt. The regions which are poised to do well in the next 10 years include Delhi NCR, Mumbai, Bangalore and Chandigarh.”
According to Jones Lang LaSalle’s 2013 report on the luxury market, luxury housing is emerging as one of the most vibrant real estate segments in India. The consultancy’s Residential Index, that tracks the growth in the luxury residential market, reveals that Mumbai’s market for high-end apartments grew by 3.2% last year.
The industry has witnessed a growing number of young buyers coming into the luxury market. According to several experts, these young buyers are also likely to buy more than one property as an investment. Developers agree there is a vast difference in the buyers’ mentality. Gone are the days when buyers retained the homes as it was other than a few changes here and there. Current buyers design their homes as per their style of living. Technology too plays a role in choosing the right home for many. “Young buyers are more technology oriented and prefer home automation as well as conveniences at the door-step, while the older generation is a lot more traditional in approach when it comes to luxury. The preference towards plots is much more in the older buyers as compared to the young buyers,” says Dhillon.
Tailor Made Solutions
The customers get more specific about their requirements as the budget increases. Starting from walls to the kitchen, everything today is customized. Plastic emulsion is said to be the general preference of the clients nowadays, but they can always be customized. Customers look at different combination for the walls. Industry experts divulge that wall paper has not seen much demand until it provides some additional aesthetics but on the other hand, wall painting has been a revolution as shades and more aesthetics have been added to wall paints. The traditional Indian kitchen has also undergone various changes. “The acceptance of the open kitchen concept along with its international design is extremely pronounced among premium property buyers. A few years ago, it was unthinkable that the traditional Indian closed kitchen could be done away with,” says Dhillon.
Among various specific demands, premium customers have also been looking at home automation, floor-to-ceiling height, VRV (Variable Refrigerant Volume) air conditioning, a lavish club-house, premium flooring and fittings, branded sanitary-ware, sports based lifestyle, pet space, larger recreation area, number of car parks per apartment, service lifts for goods and house help, entrance lobby and each floor lobby space, servants room and separate access area. All these parameters play a role in the purchase decision.
Price still remains important
The Indian buyer is very knowledgeable and understands the value for money concept very clearly. Projects and apartments that are designed with concepts that do not offer value for money, even in premium projects, are not easily accepted by buyers. “Clients have to be convinced about the value for money he/she is getting in terms of specifications, facilities, amenities, brands involved, construction company, as well as the project location. Clients are willing to pay according to each factor and if the product has a combination of these factors – it would be a win–win position,” explains Dhillon. Though one of the growth targets, tier 2 and 3 cities, is witnessing a slow phase looking at the struggling economy, experts believe it will gradually catch pace as the economy bounces back.
Source: Customer Click