What Happened?
In my understanding, the Covid pandemic quandary has a deep impact on the choices of the homebuyers. The desire to own a better home has risen notches high as home buyers seek more spacious apartments with well embedded amenities and optimal utilitarian value. The demand for spacious homes that can cater to multiple needs in terms of privacy, comfort, hybrid lifestyle & functionality has soared high.
Why is it happening?
Further, lets understand the multiple factors at play that propels luxury home sales. The rising affluent homebuyers’ segment, financially stable millennials, dual income partners, availability of disposable income from robust capital market, booming startup investment, better hiring’s, homebuying tax benefits and rising aspiration to live in luxury home that can raise living standards.
The supply side factors like improved liquidity, impetus to last mile connecting infrastructure, new business avenues like JV, DM, JDA models, alternative funding avenues like IPO, PE, AIFs etc post market consolidation, higher land acquisition, array of product variance, and increasing market share of organized realty players. Additionally, stable property prices, tamed inflation and interest rate stability is favoring homebuying demand with conducive market dynamics.
Who all are buying?
Property market registers great buying response from flourishing startup investors, established unicorn promoters, HNIs and UHNIs, C-suite professionals, NRIs and established entrepreneurs.
Future projection in CY 2024?
Since the market is very conducive for real estate sector’s buoyancy, we are bullish on the sustainability of demand in mid and luxury housing segment. The lending institutions like banks, NBFCs and FIIs are also optimistic about increasing share of home loan credits due to stabilizing interest rates & negligible NPA ratio of less than 2%, which makes it more viable and credit safe for lenders. As a result, we expect luxury housing to grow at a CAGR of 10% for CY 24.
What is a luxury home?
A spacious home with well-efficient layout
A home that caters to multi-utilitarian purpose
A home that has well-crafted design and scenic view
A home that is well-embedded with superior furnishings & fixtures
A home with enduring quality
A home in a well-connected location with holistic amenities
A home with like-minded community living
A home with optimal comfort & convenience
A home that bespoke luxurious lifestyle
A home that fetches better appreciation & ROI
Niranjan Hiranandani 