India sees “mad rush” for luxury housing

Overall, a record 65,700 luxury units are expected to be sold in 2022. (File)

New Delhi:

DLF sold a $1 billion upmarket residential project in 72 hours, while rival Godrej Properties is offering $3 million apartments to customers selected by invitation, two off-plan sales that signal a revival in luxury housing.

Property developers say that the space high-priced apartments that come with add-ons like concierge services, spa, multi-level parking, large green open spaces and a heated pool have become the rage. There are no such amenities in the individual houses and old apartment blocks that dominate India’s cramped and crowded cities.

Industry executives say many people are looking to upgrade their homes as the Covid-19 pandemic has locked them indoors. Working from home has also increased the demand for larger apartments, supported by rising incomes and India’s growing number of neo-riches.

DLF’s Arbor project in Gurugram near New Delhi attracted over 3,000 applications for 1,137 apartments priced at $869,000 each, an extremely high price for the area. People queuing up to buy homes surrounded the booking center during the project launch weekend in February.

“I haven’t seen this much rush in a decade,” said Prashant Thakur, head of research at real estate consultant Anarock. “The luxury residential market is on the way to revival.”

Varun Arora, a 37-year-old investment professional, said he would like to upgrade from his current rented apartment to the DLF development, which he said he would have liked for its grand reception area, high-speed lift and ample area for jogging Are. leave the premises.

“Having a green, open, clean space with restricted access (to outsiders) is of paramount importance. You don’t want to be running on the road. That’s paramount from a lifestyle point of view,” he said.

The supply of new luxury homes in India has been constrained in recent years, with the economic slowdown in 2019 and then the pandemic, which affected sentiment in 2020 and forced developers to put the brakes on new project launches.

Anarock data shows that luxury condominiums, with sales above 15 million rupees ($183,000), will account for 17% of all housing launches in 2022, touching at least a five-year high. And the launch of ever-popular affordable homes – priced at less than 4 million rupees (about $50,000) – dropped by 20% of the total in the period.

Overall, a record 65,700 luxury units are expected to be sold in 2022, three times the previous year, with Mumbai, New Delhi and Hyderabad leading the sales. Before the pandemic, 18,150 units were sold in 2019.

In Mumbai, Sugi Developers published front-page ads last week offering sea-view residences starting at $1.7 million that will feature an amphitheater, landscaped gardens and a sky deck lobby.

Godrej’s “Connaught One” project near the major shopping district of central Delhi is offering apartments for $2-$3.3 million, equivalent to a good-class bungalow in some parts of the city.

“We are seeing more desire for bigger spaces, lifestyle upgrades from founders of listed firms, startups, lawyers. We are getting more calls and since the available inventory is less, luxury properties are being sold faster nowadays,” Amit Goyal, India CEO at Sotheby’s International Realty.

Sotheby’s, whose most expensive India property listing is currently a $20 million bungalow in New Delhi, says 61% of high-net-worth Indians surveyed are planning to buy luxury real estate this year, up from last year. Slightly less than 67%.

heated pool

India’s 1.4 billion people have a per capita income of just $2,300, but the country has more than $800,000 millionaires. Knight Frank estimates that India will have 1.4 million millionaires by 2026, a 77% increase over 2021.

After decades of hiding wealth in a country that was socialist and led a ostentatious life, the spending habits of the wealthy have also changed.

Mercedes sold a record number of high-end cars in India last year and luxury goods are also in high demand. Knight Frank data for 2022 shows that 53% of ultra-wealthy individuals spent on both luxury watches and handbags, compared to an average of 41% and 9%, respectively, in 2020.

On a recent Sunday afternoon at the DLF site, buyers and brokers finalized paperwork as waiters served food that included quesadillas, pastries and Indian curries – an unusual sight in a city where most homes were sold to local brokers or no- Sold by developers in Frill offices.

Meanwhile Godrej has carried forward exclusivity for its growth.

It took place at New Delhi’s colonial-era Imperial Hotel where invited guests were shown 3D models and videos of the project highlighting amenities such as a heated pool and nanny-on-call services.

So far, around 160 people have been invited for a viewing and 17 of the 46 flats in the eight-storey project have been sold.

“We don’t just want to sell this property but want to create the most impactful society,” said Yuvraj Manchanda, sales manager, Godrej. “Millionaires and billionaires will buy it.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)