The demand for luxury homes in India, which has seen substantial growth in the last three years, is expected to continue with prices in the segment set to rise further, said Kalpesh Mehta, founder, Tribeca Developers which is biggest developer of Trump-branded homes outside the U.S.
“Before COVID, everyone was moving into compact homes, not much of luxury products were launched. So, there was a supply-demand imbalance of luxury, which is why we are seeing luxury prices going up. And obviously, with the economy improving, the demand has increased,” he said in an interview.
“As long as the equity markets continue to do well and the economy continues to do well, the demand for luxury homes will stay strong. There is a fair amount of supply also being added into the market. So, I think the imbalance that we see should flatten out eventually,” he added.
He said luxury always goes along with economic growth, more importantly stock market growth and wage growth.
And there don’t seem to be any major economic headwinds for the Indian economy right now, he said adding in next two to four years, “we’re not seeing any issues barring any global unforeseen events.”
He said prices are going up because of the demand and challenges associated with a “good market.”
“In a good market everything is expensive. Land, contractors, the building and hiring people is expensive,” he added.
“The [luxury home] market is very hot right now. And we can see, not just in sales prices and velocity, but in the demand for all of the resources that go into creating this product whether it is men or material,” he said.
He said the company which has 6 million sq. ft. under development is ramping up and adding more projects in the West and North regions under the Tribeca brand.
“And under the Trump brand, we’re looking throughout the country for projects. In this financial year our goal is to sign up two to three new projects under each bucket of Trump and Tribeca,” he added.
While Tribeca-branded homes will be in the ticket size of ₹3.5 crore to ₹5 crore range, the Trump bucket would be in the range of ₹5 crore to ₹15 crore per apartment, he said.
Published - April 13, 2024 07:49 pm IST
