Ultra Luxury Housing in India
Luxury housing constitutes almost 4-5 percent of the total real estate market in India and continues to thrive within the specific segment of discerning, affluent buyers who continue to look for nothing but the best. Prateek Mantri, Director, Mantri Devel
India is expected to see almost a 105% growth in HNI population. Thus, the dynamics of real-estate are fast changing in keeping with the buyer’s preference that directly compliment their spending power and lifestyle.
Luxury was earlier perceived to be synonymous with loud and glaring furniture, décor and architecture. Today’s luxury housing can be seen as minimalistic, sleek and personalized, coupled with high-tech security and app-based operations. Theme based projects such as Spanish and European style of housing is emerging as one of the key trends and this has to be attributed to the globetrotting high net worth Indians heightened travel exposure. Amenities and over all architecture and structures of homes are customized to suit the young, dual income earning home buyers. This brings in the influence of international architects, who are hired by Indian builders to design such properties. World class landscaping also plays a vital role in this segment.
Young Indians are investing in luxury properties across the country that is directly in relation to earning capacity of the individual. This leads to the aspirations of the home buyers to seek more quality intensive amenities for their homes. Amenities have now become a lifestyle statement. Owing to the accelerated consumption of land bank in cities, premium and luxury residential properties are mostly growing vertically. Cities like Mumbai, Delhi and Bangalore are now providing apartments that constitute an entire floor of a building to one single apartment, giving enough room to provide landscaped terrace gardens, central air-conditioning and private swimming pools.
Most of the consumers of such properties are successful entrepreneurs, software professionals, scions of wealthy families, top corporate honchos etc. Ultra-luxury segment offers limited projects, which targets a very niche set of buyers who are completely unaffected by macro market dynamics.
Unlike the segment of affordable and mid-income housing, the market for luxury homes is not driven by home loans but by personal wealth. For high end projects, it is mostly word of mouth communication amongst the core investor fraternity. Sending direct mailers with personalized communication also helps to promote the projects among prospective buyers. Also advertising in prestigious lifestyle magazines is one of the approaches used for promotion. High end shopping centers and airports lounges are similar platforms used for promoting projects. Typically, end-users pay a premium for the location, with the remaining cost reflecting aspirational lifestyle accompaniments. Luxury remains the fastest growing segment in residential housing market. Bangalore city being the hub of IT industry, whose top management is the main buyer of luxury houses have seen good growth in this segment. Company’s projects in this segment include, in Bangalore Mantri Blossom, Mantri Centrium, Mantri Espana, Mantri Pinnacle, Chennai - Mantri Signature Villa, Hyderabad - Mantri Euphoria and in Pune – Mantri Emporio.
as per industry reports close to 40% of indian luxury consumers are not from metro cities. however, cities like mumbai, Delhi and chennai are the key locations for the ultra-high luxury projects. bangalore and Pune are emerging locations for this segment. bangalore leading with almost 29% of sales in this segment in fy 16