Indian developers see luxury real estate demand rising
new delhi — India’s luxury real estate segment, with a customer base of its own, did not witness a slowdown as significant as in midlevel properties in the last few years and with the latest cut in GST rate, developers say, adding that demand will pick up from here on.
The major factors for a customer of luxury apartments, they say, are location, amenities, the niche provided and others, rather than the price as buyers are mostly the affluent people.
The problem of huge unsold inventory, noticed in mid-level properties, is not witnessed in the luxury segment, which can also be attributed to the limited quantity of construction.
Developers say that although there was a slowdown of demand during the last few months for under-construction properties, including the high-end market owing to the wait and anticipating cuts in Goods and Services Tax (GST) from 12 per cent, interest is seen returning after the rate cut.
“People stopped buying for a very short term, looking for a clarification on GST and that is the only reason why the demand was low and since now the clarification has come and rates are reduced, it has been a booster to the luxury demand,” said Pankaj Bansal, director at M3M, told IANS.
Abhishek Kulkarni, chairman of Pune-based Million SqFt Realty, the demand for high-end property has been steadily rising as such properties are built in the metros where multinational companies have entered and businesses have grown in the past few years, leading to a sustained demand from the well-off.
A lot of the buyers in the segment actually purchase properties to invest or park their funds with an aim to liquidate the property in future and that very trend of investing in high-end property has of late increased among Indians, market participants said. —
Now the [GST] clarification has come and rates are reduced, it has been a booster to luxury demand
Pankaj Bansal, director at M3M