The Coronavirus pandemic may have slowed down investment by High-Net-Worth Individuals. Still, the reopening property markets have seen an increase in interest from the super-rich in real estate. A recent survey found that HNIs and ultra-rich investors are keen to invest in the property market, particularly in the segment above Rs 5 crore. The Coronavirus crisis period shows that the wealthy investor class primarily invested in luxury real estate for personal use, not for appreciation/ROI. It was sensible not to try new things in these uncertain times.
The ultra-rich are still bullish about luxury property investments with the opening up of the economy. Multiple property deals above 100 crores were made between the two metro cities of Delhi, Mumbai, and Kolkata in 2021. Delhi, the capital of India, has been a hot spot for the super-rich. In 2021, multiple deals worth up to Rs 1000 million were recorded in the capital. The most sought-after real estate areas were still South Delhi, VasantVihar, Lutyens' Zone, and VasantVihar. Experts predict that this trend will continue in the coming year.
The ultra-rich also prefer Mumbai's commercial capital. The Coronavirus crisis' short-term stamp duty waiver was a significant catalyst for high-end property transactions. HNIs, or High Net Worth Individuals, made the most of this opportunity and saved significant amounts in stamp duty fees.
Experts agree that high-value investors are likely to choose reputable and experienced developers with track records. This is because investors don't want to be in trouble due to procedural errors from developers.
Non-Resident Indians (NRIs) are a segment of the High Net Worth Individuals. They have contributed greatly to the growth of the luxury market. The ex-pat community's investment pace slowed during the pandemic, but the NRIs continued to be keen to invest in the high-value properties of established markets. NRI investors can also benefit from the falling rupee value, which allows them to purchase high-end properties for a relatively lower investment.
Also Read- A Complete Guide for NRI Investment in India
This is not all. Another key trend in luxury property markets is investors' attraction to the commercial segment. There are many commercial showrooms in metro areas and office spaces in upmarket locations. Due to the Coronavirus pandemic-induced slowdown, prices were not too high, so luxury investors didn't hesitate to cash in on these opportunities.
Experts believe the supply chain problems resulting from the pandemic will slow the supply of high-end luxury properties. However, the market is recovering, and those who aren't ready to wait are unwilling to wait.
Luxury market investors can reap the rewards of low-interest rates and loans to purchase high-value properties. Luxury investors are turning to the luxury realty market because of the low returns on traditional investments such as Fixed Deposits, Gold, and Equity.
Preference for properties ready to move in is one trend that will dominate the luxury market. Luxury investors don't trust properties still under construction and want immediate possession.
The luxury real estate market will continue to grow and help the overall real-estate recovery cycle since the real estate market is recovering and showing signs of robust recovery in 2022-23.
The Features That Make A Luxury Home Unique
Although India's luxury sector is slowing down, it has not experienced any major setbacks. According to Forbes, in 2017, India had 101 billionaires, and India is fourth on the list of countries with nearly 2.36 million millionaires. It is not surprising that there is a steady demand for luxury housing.
What are the most important features for modern millionaires and billionaires looking for when they are buying a luxury home?
Homebuyers and real estate agents believe that luxury homes should be exceptional in terms of technology. Automation is, therefore, the keyword, and the extent of technological advancement depends on the property's price. Bright lighting, sound, and energy-efficient homes are all now commonplace.
A luxury home is defined by the quality of its raw materials, fittings, and furnishings. These home builders must also provide various services, including interior and exterior makeovers, kitchen and bath remodel, concierge, design rebuilds, and architectural makeovers.
Even if the property is located in prime areas like Mumbai, space is essential in a luxury home. If you're looking for an apartment in Mumbai that is more than 3,000 square feet, expect to pay anywhere from Rs 10-30 crore to get it.
The location of the property can also define luxury. Luxury does not include large, traditional homes in small towns or the outskirts of major cities. The location must be desirable, expensive, and aspirational in all aspects. Pricing can vary depending on a project's location and the unit's location.
The elite are attracted to luxury neighborhoods. Luxury developers are careful about keeping the brand-value high and targeting this specific population. These properties are private, and single-unit floor designs have become very popular.
You can make your home stand out in many ways, including the landscaping, the kitchen, and the amenities like pools, fitness centers, entertainment zones, and how you dress it. The quality of amenities should be at an aspirational standard regardless of the price. A pool in a luxury development is different from one in a mid-ranged property. Luxury projects have a charm that regular projects can't match. Homes with gazebos, outhouses, or outdoor spaces are rare and therefore expensive.
Entertainment at home
A luxury home now has an entertainment area, a home theater, and a gaming zone. Young and old will love the latest gadgets on the market. This feature's primary purpose is to make a space where a home buyer doesn't feel the need to leave the comforts of home.
Many luxury homes have a personal gym. Wealthy people prefer to exercise at home rather than in gyms that require them to share equipment. A separate area in luxury homes has all the necessary machines and weights. It also includes a TV, wireless speakers, and other gadgets that allow the owner to exercise in style.
An elevator that opens to the foyer is one of the most sought-after features of a luxurious property. Elevators are a must-have in any luxury property, whether an apartment, penthouse, or mansion.
Create personal space
A luxury property's bedroom can be a valuable asset. As we all know, a primary bedroom has ample space for a king-size bed and plenty of seating. You can add all the high-tech features such as built-in automation. A walk-in closet can be added to the primary bedroom as an extension. This allows you to display your designer clothes, shoes, and accessories. These closets have ample lighting and ceiling-to-floor mirrors. They also feature the best wooden wardrobes.