Spurred by steady house costs, buyers’ have to have for larger residences, profitable bargains and discounts doled out by developers, and superior traction from each HNIs and NRIs, luxury residences continue to show superior momentum even for the duration of Covid occasions.
For instance, the Covid-19 pandemic notwithstanding, 2020 saw a affordable uptick in sales of luxury residences (priced >Rs 1.5 crore) in Delhi-NCR. A total of ~23,220 residences have been sold in NCR in 2020 across all spending budget segments, and luxury housing accounted for more than 4% of this. In Noida, about ~3,240 residences have been sold in 2020, and 9% of these have been in the luxury segment. In Gurgaon, about 7,240 units have been sold for the duration of the year, with luxury residences accounting for 5%.
Interestingly, in occasions of the pandemic, NRIs are after once more scouting for luxury residences in India. According to a current customer survey by ANAROCK, at least 73% NRIs now favor properties priced among Rs 90 lakh and Rs 2.5 crore. In the pre-COVID survey (H2 2019), just 41% preferred properties inside this value bracket and most favoured cost-effective and mid-segment residences. However, 3 and 4 BHK residences at the moment major their want-list and the IT hubs of Bengaluru (24%) and Pune (19%) are seeing the highest NRI demand. Collectively, these two cities saw close to 48,370 residences sold in 2020 — accounting for a 35% sales share amongst the major 7 cities.
However, “even as the NCR witnessed a modest sales increase, developers reduced the new supply of luxury housing – only 9% of overall 18,540 homes sold in 2020 fell in the luxury segment; in 2019, this share was 12% or 35,280 homes. In fact, the only NCR cities which received new luxury housing supply in 2020 were Gurgaon, Noida and Ghaziabad,” says Anuj Puri, Chairman, ANAROCK Property Consultants.
In Gurgaon, the highest quantity of residences (approx. 7,240) was sold in 2020, and 5% of these have been luxury units. 6,950 residences have been sold in Greater Noida in 2020, with only 2% falling in the luxury segment. “In Noida, about 3,240 homes were sold in 2020, and luxury homes accounted for a 9% share. In Ghaziabad, 3,780 homes found buyers in 2020 and a mere 1% was in the luxury segment. Faridabad too saw restricted luxury homes sales – only 1% of the total of 7,860 homes sold in 2020 fell in the luxury category,” informs Puri.
Whatever be the case, NCR-based developers are pretty upbeat about the development prospects of luxury housing going ahead.
Pankaj Bansal, Director, M3M, says, “Today’s discerning customers — who prioritize their modern needs and are willing to spend on a well-planned condominium with clubs, amenities, leisure spaces — have contributed towards the growth in the segment. With new luxury supplies in NCR, the region witnessed significant growth within the luxury segment. Ease in investment opportunities has also led to good traction from HNIs in India’s real estate segment and the demand will continue to show an uphill trend in 2021.”
Some developers are of the view that purchasers are at the moment hunting for not only luxury residences but all kinds of residences with larger spaces.
Karan Kumar, CMO, DLF Ltd, says, “Since the onset of pandemic, there has been a shift in demand for bigger spaces, not just in luxury but across all segments. Anyone who can afford is looking to upgrade to bigger spaces given the fact that they are spending more time at home. Buyers whose financial condition and lifestyle remained unaffected have developed a great interest in second or bigger homes. The COVID-19 has reinforced the significance of spacious homes for indulgent living and as a stable investment,”
The extended work from dwelling will continue to nurture the buyers’ choice of buying a dwelling. The have to have to upsize has currently led to surge in massive-ticket transactions and this trend is anticipated to continue even in 2021. The work-from-dwelling phenomena has designed a robust demand for higher-priced properties that can serve as catch-all compounds, live-work spaces, and give a resort-like living.
However, “in a post-pandemic world, home buyers are not just looking for big spaces, but also homes with incredible view, set in a big piece of land and a notable architecture, that supports their vision of modern, luxurious, and sustainable living. Today more than ever, buyers are looking for bigger balconies, perhaps that half extra room that could be converted into a study room, or perhaps a little more seating space within the bedroom where they can set up their own temporary workstations. The focus is also on multi-utility rooms. Depending on the family’s requirement, a study room can double as a guest room, or a pooja room can become a study room,” says Kumar.