Real Estate Investment Tips - India Luxury Housing Update

Unlike more developed countries, India is a growingSouth Mumbai tends to be held by institutions rather
economy. Lifestyle aspirations are high, and earningthan individuals, who release their holdings at certain
capacities are increasingly matching these aspirations.times.
The Unique Indian ScenarioInterestingly, luxury projects in India are now going
Akin to other emerging markets, work and leisure arevertical. While this is a function of the city and
rarely divorced from each other in India. The fulfillmentmicromarket rather than of the popularity of a
of lifestyle aspirations is not viewed as separate fromconfiguration (for instance, in Delhi's Lutyen's Zone,
the source of the revenue that enables it - be it drivenbungalows are the only option) going vertical is the only
by salaries or business turnover.option in cities like Mumbai.
This has led to a rather unique concept of luxuryHigh rise luxury projects optimize the limited space
housing in India - homes with high lifestyle quotients asavailable, and also bring with them a sense of
close as possible to the workplace. This naturally bringsmodernity; therefore, they wield their own kind of
with it some limitations in terms of locational ambiance,aspirational value.
especially in business-driven cities like Mumbai andInfrastructure Is Cause For Concern
Delhi.There are issues that will need to be addressed in
There is less scope for large estate settings, and theterms of infrastructure. Unlike in developed countries,
onus is on the aspirational quotient and inherentenforcing strict norms with regards to structural safety,
importance of the location, apart from the luxuriousdisaster, environment and fire safety in high rises
specifications of the homes themselves. Because suchpresents quite a challenge in India.
luxury homes are invariably centrally located, realIf we take the intense urban sprawl of financial capital
estate prices tend to be rather high.of Mumbai as a reference point, it becomes evident
The Action Is In Mumbai And Delhithat such parameters cannot be over-emphasized.
Mumbai and Delhi are currently the only cities with aThe same can be said for other large cities, albeit to
real and sustainable demand for genuine luxuryvarying degrees.
housing. In other cities, HNIs tend to buy land and buildApart from the fact that support infrastructure is a
their own extravagant residences, but this does not fallhuge challenge in most cities, we do not have the
under the purview of luxury home development.benefit of facilities such a helicopter evacuation in India.
As of now, the luxury housing market in Tier 2-3 citiesAnother factor affecting the increase of high-rise
is insignificant in market terms. In terms of both pricingbuildings in India are the FAR (Floor Area Ratio) norms.
and quality of offerings, Mumbai's luxury home marketFAR parameters vary from state to state and are
certainly holds its own with these cities - and evengoverned by the respective city development
surpasses some of them.authorities.
In Delhi, residential colonies can be classified accordingAllowing high-rises indiscriminately in certain city areas
to their geographical placement and prestige, which isis definitely asking for trouble, and will result in an
gauged by the inhabitants of the area. By that coin, theinfrastructure deadlock and eventual fall in prices.
city's elite - comprising of politicians, bureaucrats andTips For Luxury Home Buyers
wealthy business families, restrict themselves to• Determine whether you are buying for self use or
Lutyen's Zone, central and South Delhi.investment
Even there, supply is now extremely limited. One of the• Calibrate you budget according to your actual
last premium offerings now available in the Lutyensneed and long-term spending power
Zone is at Kasturba Gandhi Marg.• Reduce your dependence on a bank loan for such
Current Trends In Luxury Housinghigh-ticket real estate by using your own resources as
Location continues to be the key factor for luxuryfar as possible
housing in India. This creates considerable and focused• Determine both the existing and future importance
demand for luxury housing in certain areas, leading toand inherent value of the location
scarcity of available supply in geographically limited• Pay only for what you get, not what you are
cities like Mumbai.promised.
The supply that exists in high-profile locations such as