Factors Influencing the rising demand for luxury homes in India

The Indian real estate sector has climbed up the ranks to emerge as investors' preferred destination. Made evidently clear by the Knight Frank ‘ The Wealth Report 2023, where Mumbai jumped from 92 to 37th rank with a 6.4% increase in luxury homes last year. (source: Indiatimes) 

The luxury homes segment is not just limited to providing security and safe returns to its customers but a product that successfully delivers on the promise of true luxury, comfort, wellness, and sheer opulence. From sprawling mansions to high-end apartments, the demand for luxury properties has been on the rise in India over the past few years. With top builders in Mumbai and other major cities offering luxurious amenities and state-of-the-art designs, it's no surprise that people are willing to pay a premium price for these properties. 

Today, we’ll explore some of the reasons driving this trend and why luxury homes are becoming increasingly popular among home buyers in India.

Luxury homes are a status symbol.

Owning a luxury home has always been perceived as a mark of prestige and success. The desire to live in luxurious, spacious, and well-appointed homes is not just about the property's physical features but also about the social status it brings with it.

For many people, owning a luxury home is seen as an achievement that sets them apart from others. It's a reflection of their hard work, dedication, and financial success. In India, where social hierarchies still play an important role in society, owning a luxury home can be particularly significant.

In addition to this, luxury homes offer exclusivity and privacy. They tend to be located in upscale neighbourhoods or gated communities that offer residents peace of mind knowing they are secure within their own enclave.

Moreover, for those who love entertaining guests at home or throwing lavish parties – having a luxurious abode becomes even more important. A grand entrance foyer, designer living rooms with plush furnishings, private theatres, and high-end kitchens make hosting events alluringly easy.

Luxury homes have become more than just bricks-and-mortar; they have evolved into lifestyle statements showcasing one’s taste and personality while offering homeowners comfort & convenience that is truly beyond compare.

A buyers-first market

India’s realty sector has strengthened its image, emerging as a customer-centric market. All credit for such guise goes to the much-needed support by the Government of India in the form of RERA and a minimal rise in the Repo rate by the Reserve Bank of India. These steps made the market more transparent, credible, and profitable for all parties involved. An increase in transparency bought those wealthy investors to the fold who were sitting on the fence, fearful of making a decision. 

Now, when the government brought the industry some relief in the pandemic in the form of cuts in stamp duty, low-interest rates, and favourable tax policies that allowed real estate developers in Mumbai to transform the landscape and get ready to bounce back stronger than ever, the industry paid back by promoting the buyers-first sentiment prevalent in the market.

An increase in interest from NRIs & HNIs for rental income

The real estate market in India has seen an increase in interest from NRIs (Non-Resident Indians) and HNIs (High Net Worth Individuals) for rental income. This trend can be attributed to the growing demand for luxury homes, especially in cities like Mumbai.

NRIs and HNIs are investing heavily in luxury properties that have a high potential for rental income. With the rise of co-living spaces and shared accommodation, there is a growing need for luxurious apartments catering to this population segment.

Furthermore, with more businesses setting up operations in India, there is an increased demand for expat housing. This has led to a surge in investment by NRIs and HNIs, who identify renting out their properties as a lucrative option. After all, investors know that owning a property has long-term benefits, as it will always appreciate over time.

The increasing interest shown by NRIs and HNIs towards rental income from luxury homes indicates sustained growth opportunities within India's luxury real estate segment.

Conclusion

With top builders and real estate developers like Omkar Realtors, under Omkar Group Promoter Babulal Verma's supervision leading the way in creating luxurious living spaces, it is no surprise that more and more people are investing in these properties.

As we progress, it will be interesting to see how this trend evolves with changing economic conditions and demographic patterns. Nonetheless, one thing remains certain - luxury homes are here to stay, serving as a place of residence and a tangible representation of our aspirations toward success and prosperity. And ORDPL will be ready to uphold the commitment to quality while ensuring delivery to the buyers.