When it comes to luxury homes, consumers are picking up spacious properties and are willing to spend over ₹15 crore to buy such spaces. Buyers on an average are picking up luxury properties in the size of 4,000 sq.ft to 6,000 sq.ft while some are extending it to over 9,000 plus sq.ft. They are spending around ₹7 crore to above ₹20 crore to buy apartments/villas and penthouses in the city.
“Consumer have changed – they want extraordinary experiences. They want to live it up. They are now ready to pay over a crore for interiors alone. Crafting and amenities matter a lot. The definition of luxury itself has changed,” T.S.S. Krishnan, CEO of Appaswamy Real Estates Limited, pointed out. “Consumers are asking us for bigger spaces and there are more takers for properties which are above 8,000 sq.ft,” he said citing examples from Appaswamy’s Azure The Oceanic property in Chennai. He added that enquiries had been good for the firm’s luxury project Navasuja at R.A. Puram too.
“Chennai has good amount of projects in this segment. There is a definitive shift in the mindset of home buyers who want to move from independent houses to high end luxury apartments which is driving the demand,” said Ceebros Managing Director C. Subba Reddy. Currently, Ceebros isc doing a project Temple Tree on St Mary’s Road (2,500 sq ft onwards) and it has received tremendous response, Mr. Reddy added.
Amara Homes, another player in the luxury space, has projects coming up in Gopalapuram, Kothari Road and Harrington Road to name a few. Its Managing Director Amarnath Reddy explained that demand in the luxury segment is driven mainly by HNIs, businessmen, professionals, and affluent young adults who are just married and want to stay separately.
G.Diliban of Etica Developers, a firm whose primary focus is the luxury segment, said: “Consumers today are ready to buy projects priced from ₹5 crore and are willing to spend more than ₹10 crore too.” Currently, Etica has ongoing luxury projects in MRC Nagar and Beasant Nagar.
Earlier, places like Boat Club and Poes Garden were considered prominent pincodes for luxury spaces. But now these traditional markets have entered the ultra-luxury league. According to Jerry Kingsley – Senior Director JLL India, currently the ongoing per sq.ft price range in Poes Garden is ₹25,000- ₹28,000 and ₹35,000-₹40,000 in Boat Club. “Upcoming locations for luxury residences are Alwarpet, Nungambakkam, Anna Nagar, Adyar, MRC Nagar, Gopalapuram and ECR till Neelankarai,” Mr.Kingsley added.
Srinivas Anikipatti, Senior Director- Tamil Nadu & Kerala, at Knight Frank India points out that roughly 7% of the total residential market falls under luxury segment. It was 5% pre-pandemic.
“Post COVID-19, most developers in the city have included luxury as an offering with limited quantity,” Sanjay Chugh, City Head and Senior Vice President of ANAROCK Property Consultants Pvt. Ltd. “Ultra high net worth individuals, NRIs and top professionals like CEOs and CFOs of multinational firms are the biggest clientele in this segment. Many business families are now moving away from the joint family system which is driving demand in this space,” he added.
