A Booming Surge in Luxury Real Estate
The sustained interest in luxury properties is shaping a new landscape in the realty sector in India, with this boom expected to carry on through 2024 too. According to the annual Luxury Outlook Survey 2024 by India Sotheby’s International Realty (ISIR), a strong economic optimism exists among HNIs (High-Net-Worth Individuals) and UHNIs (Ultra High-Net-Worth Individuals), with a humongous 79% of them expressing confidence in the economy’s positive trajectory for 2023-24 as compared to just 59% for the year before.
Trigger Factors
While the key motivation factor for 44% of current investors is long-term capital appreciation, 19% of the luxury realty investors are incentivized by creating assets for their coming generations. Lifestyle upgrades which are usually triggered by dynamic changes in emerging technologies, pivotal trends and an increasing consumer preference for spacious and luxurious living spaces, are all no longer the primary motivation for luxury real estate investments.
Affluent Lifestyle
According to Goldman Sachs Group Inc, the percentage of India’s ultrawealthy is growing, with the overall affluent class expected to almost double to a 100 million people within the next three years. And even though there has been an almost 40% hike in property prices over the last 2 years, accompanied by an increase in loan interest rates, 71% of India’s affluent individuals are still keen on buying property within the next 1-2 years. This indicates a renewed and intensified interest among investors who prefer to view real estate as a source of wealth creation over the long-term.
Diversified Assets
The Luxury Outlook Survey 2024 by ISIR also revealed that an overwhelming 83% of affluent Indians are owners of multiple luxury properties aside from their primary luxury homes, revealing the trend for a diversified real estate portfolio. This is likewise emphasized by the fact that around 43% of the respondents wished to consolidate their investment portfolios with a focus on high-end properties and rent-yielding assets. Around 34% of HNIs and UHNIs also showed preference for researching and viewing properties digitally using 3-D virtual reality walkthroughs of properties.
Record-breaking sales of residential properties and an all-time high stock market in 2023 indicates that the high-end of the real estate market will show up in the next 12-24 months. Around 75% of the affluent individuals surveyed by IRIS believe that real estate sector will boom over the next 2-3 years, with 57% expecting the RBI to cut down on home loan interest rates in 2024, indicating a more positive outlook.
Backed by a steadily rising demand, the Bangalore real estate scenario is growing exponentially too, making this the best time to invest in the luxury real estate market here. For those on the lookout for high-end luxury projects with world-class amenities and a potential for sound property investment in Bangalore North, checkout Fortius Infra’s ultra-luxurious ‘Under the Sun’ villas nestled within a 30-acre fruiting orchard in Devanahalli.
References:
https://economictimes.indiatimes.com/magazines/panache/71-of-indias-wealthiest-are-keen-to-invest-in-luxury-real-estate-report/articleshow/107023529