By Suren Goyal, Partner, RPS Group

Luxury real estate in India remains one of the sector’s growth drivers. The return of normalcy has restored buyer confidence in the real estate market, as well as created a demand for larger homes. Increased interest in high-end properties (Rs 2.5 crore and above) and rising sales figures in recent months attest to the fact that the luxury realty sector is gaining traction and is expected to grow rapidly in 2023.

According to current market dynamics and trends, premium realtors are not only acquiring new customers but also retaining existing ones by providing better upgrades as a result of the following factors.

Rising Trend of Retirement and second home culture

The pandemic has had a positive impact, as there has been a significant increase in demand for gated/compound houses, villas, retirement & second homes (RSH), row houses, and other properties.

People also want spacious gated communities with world-class amenities such as valet parking, rooftop F&B facilities, world-class gaming zones, golf courses, water bodies, wood & nature walks, business meeting rooms, and much more. People are looking for homes that provide an elevated lifestyle, ensure overall well-being, and seamlessly integrate new modes of work, as there is a growing trend of WFH and Hybrid Working Models. People do not want to commute long distances and prefer to have the majority of their amenities on campus so that they can enjoy and have fun with their friends and families.

Investment opportunity

Buyers want larger spaces after the pandemic, especially with the growing trend of Work from Home (WFH) and homebound schooling. People who previously lived in 2/3 BHK apartments now want to upgrade to larger homes. Luxury housing is viewed as a profitable investment opportunity, which has drawn an increasing number of buyers to this segment. Home loan rates are also at an all-time low, which is contributing to the segment’s growth.

NRIs are Pivoting to the Market

In recent months, NRIs have shifted their focus to the category of luxury housing in the country. As Indian luxury real estate evolves and the gap with international markets closes, NRIs are becoming more interested in Indian high-end apartments, villas, bungalows, and so on. Luxury real estate is also a sound investment with rising demand. It can generate both smart capital returns and recurring rental income. The market is experiencing a 35% quarterly increase in demand in the luxury segment, and the euphoria is expected to last.

Conclusion

Going by the optimistic sentiments, which are supported by healthy numbers, one can say with certainty that the luxury real estate market has experienced spectacular growth, with no signs of a slowdown in buyer demand. By 2023, the segment’s sales figures may have surpassed all previous highs.