Christie’s arm enters India as luxury real estate grows
Christie's International Real Estate (CIRE) has entered India, following its famous parent body and fine art auction house nearly three decades on and at a time luxury housing has grown despite the upheaval caused by Covid-19.
On Tuesday, CIRE announced its foray through an affiliation with Delhi-based brokerage firm Himmat & Rohini Singh LLP.
CIRE, the luxury real estate arm of Christie's with an affiliate network spanning 48 countries, follows a brokerage model and does not auction properties, unlike in the world of art. In India, it will deal in ultra high-end luxury residential properties (priced at ~10 crore and above).
Initially, it will focus on residential properties in north India, particularly south and central Delhi, apart from holiday homes in places like Himachal Pradesh. Gradually, it aims to expand to markets like Mumbai and Goa.
“With this affiliation we can offer our clients in India the option to purchase properties anywhere in the world,” says managing partner Himmat Singh.
The affiliation promises an end-to-end service for sale and purchase of luxury properties in India and abroad. CIRE, Singh adds, brings with it a strong marketing platform, be it in terms of collateral or its network of products. “If we want to list a 375 sqm property worth ~45 crore, we will be able to put together a two to four-page brochure and distribute to all our clients. The Christie's website will identify it and increase the demand base because we can market it globally.”
The Covid-19 pandemic has resulted in much hesitation among buyers to visit sites. CIRE has reacted to the change by introducing marketing tools such as 3D tours or virtual visits to help potential buyers shortlist options.
According to Singh, the residential real estate market had been on a downward trend in India post-demonetisation. When the pandemic hit, there was a fear of values dropping further. But, he adds, the market picked up in terms of value and volume of transactions compared to the couple of quarters before the pandemic struck.
“September 2020 to this January has seen an incredible amount of business, with 25-30 per cent increase in volume of transactions in high-end properties,” he says, adding that after lockdown restrictions were eased hesitant buyers sought out the security of larger spaces, particularly since work-from-home became an acceptable change.
He adds that nuclear families are moving back to joint family set-ups, while holiday homes have grown as a segment likely due to a reaction to being cooped up for long.
Helena De Forton, director of regional operations for Europe, Middle East, Russia, India and Africa of CIRE, observes that every market has been affected differently by Covid-19, but the big trend is that “people want bigger space and they want to be close to nature”.
In a place like London, people are looking to buy bigger houses if they want to stay in the central parts, but many are opting for primary residences outside of the city. In Portugal, where 70 per cent buyers come from outside, lockdown restrictions hit transactions, forcing sellers to lure locals with incentives to buy bigger properties, she explains.
In the Indian context, there's as many people buying overseas as ones from abroad buying in India, says Singh.
He agrees that trust is a big problem, particularly in north India. “But this affiliation for us is a great sign of what's happening in the Indian economy, particularly real estate which has an iffy reputation in the best of times,” he says, adding that they want to set an example of transparency and professionalism through the tie-up.
Anuj Puri, chairman, Anarock Property Consultants, points out that in 2020, while affordable and mid segments continued to drive housing demand, luxury sales also kept up pace despite the onslaught of the pandemic. “This is also because the impact of the pandemic on this buyer class was not as significant as other categories. The discounts doled out by developers made such properties more lucrative for enduse buyers.”
According to Anarock, 2020 saw housing sales of roughly 138,000 units across the top seven cities. Of this, nearly six per cent was in the luxury segment priced ~2 crore and above.
“For affluent buyers who are least affected by the pandemic, second homes are now a tantalising vision of alternative, safe shelters in times of crisis,” says Puri. It's a sentiment Christie's is counting on as it starts its India journey.
Initially, it will focus on residential properties in north India, apart from holiday homes in places like Himachal Pradesh