Property trend in leading cities like Mumbai, Delhi-NCR, Bengaluru suggests that there has been no increase in average property prices in all segments including the ultra-luxury and luxury segments in India. Interestingly, nowadays, luxury and ultra-luxury segment is no more considered as an investment grade asset class and basically end-users driven. Unlike previous years, the ultra-luxury (residential property Rs.1.5 crore and onwards) and luxury (Rs 80 lakh – 1.5 crore) housing market are purely driven by end-users. Moreover, after demonetization, which hit the ultra-housing segment the most, no segment other than affordable housing is seeing much activity.
Despite no or fewer activities in luxurious segments, developers are hopeful and have not shifted their focus from developing luxurious residential properties in Mumbai, Gurugram and Greater Noida West. Sensing the fact, the developers dominating these segments have started diversifying their portfolios and eyeing for the affordable housing segment, which is witnessing the great demand.
Besides foraying into affordable housing segments, developers are applying new tactics to boost sales like “product enhancement, attractive and unique payment plans, etc. It is believed that the luxury market has seen a major fall since 2013 and some recovery has been witnessed in the year 2018. With the transparency brought in by RERA and rate cut in GST, prospective homebuyers are coming up with more and more inquiries for luxury residential properties in Greater Noida and other major cities. Even factors like ongoing general elections and stable political government at the Center will be expected to improve the condition of the overall real estate sector.
Increasing employment opportunities, industrialization, and high disposable income more and more people are looking for premium residences in premium locations. Additionally, intense desire to imitate the lifestyle of celebrities is compelling people to pay extra money for luxurious services as they prefer living in well-planned areas.