Livability Defines Luxury
Luxury has now trickled down to middle class buyers. The growth driver is the generation next consumers who are educated, tech-savvy and well-travelled. Their aspiration for high living standards, better pay-packets & purchasing power as well as the ease of getting finances is fuelling the demand for luxury amenities in real-estate. HNIS (high net worth individuals) too are allocating part of their investment portfolios to luxury realty. Implementation of the RERA will help improve confidence of NRIS to invest in the Indian residential market and luxury residential is in sync with the kind of lifestyle they are leading in foreign countries.
Central Park is an ultra-luxury realty brand with an established presence in National Capital Region over the past 16 years. Amarjit Bakshi, Chairman and Managing Director, Central Park talks to Realty Plus about various aspects of luxury real-estate. According to Global Wealth Report by Knight Frank, India will add about 1000 ultra-high net worth individuals (UHNIS) each year for the next ten years. With the Luxury Real Estate growing at a CAGR of about 25% and estimated to reach a whopping $ 180 Billion by 2025, these are positive figures for real-estate players in the ultra-luxury housing segment.
Q What defines ultraluxury residential in India?
The market for luxury homes continues to thrive within the specific segment of discerning, affluent buyers who continue to look for nothing but the best. Earlier, the address was the determining factor; today it is the world-class experiences and exclusive living that is the benchmark of ultra-luxury.
The metropolitan cities such as Delhi, Mumbai, Bangalore and Chennai are the top hubs of ultraluxury properties. Emerging cities and small towns such as Ludhiana, Amritsar, Surat and Indore continue to create new ultra HNIS who are also propelling the demand further.
The UHNIS and HNIS are attracted to ‘exclusivity’ tag. Developers are resorting to experiential marketing such as exclusive dinner invitations with cuisine crafted by Michelin Star Chefs, a private gathering of finest art connoisseurs and preview of vintage watches or pens.
Q What is REITS potential in bringing investments to realty sector?
The underlying strategy for REIT is to invest in rent-yielding assets and generate rental income for investors. That is why commercial real-estate is seen as potential for REITS but investing in residential assets via rental housing schemes is yet not viable as rental housing schemes in India are still not prevalent. The residential projects in metros giving returns of 11 to 12 percent might see some investment due to return potential but that is yet to happen.
Q What are some of the new concepts introduced?
Flower Valley is a global township, The Room is a fully maintained luxury suites and apartments (700 to 1300 square feet) complex. Soon to be launched ‘My Room’ is a micro living concept with small size service residences of 400 – 600sqft in Gurugram. Sky Villas in Gurugram are the ultra-luxury properties comprising penthouses of 5612 – 8750sqft area. Celebration Home is a concept around senior living.