Luxury real estate enthusiasts are curious about what this year holds. With the last few years spent in an economic lull, the real estate sector was forced to take a step back in time. Owing to a shortage of resources, labour, and the economic downfall, this was a period of reconsideration and innovative thinking for developers globally.
When we look at patterns in luxury real estate investment in 2022, high-net-worth individuals, who account for the majority of luxury real estate investors, have been moving to metropolitan regions. It is clear that this demographic, with its amassed wealth, is not only concerned with themselves, but also with generations to come. Also dominating the domestic real estate market are NRI investments, with them showing a preference for investing in long-term assets versus stocks and fin-tech. Adding to this, Baby Boomers (i.e. the population born between 1945 and 1964), significantly influence the luxury real estate market. Since their transition to retirement from 2010, the focal points of their interest include luxurious family homes and secondary homes.
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As a result of this fast-growing, consistent and reliable market base, 2023 looks promising. Here are five luxury real estate trends to look out for this year:
1. Location-centric appeal
A prime location always takes precedence when it comes to luxury properties. However, homebuyers are now increasingly shifting focus towards properties that offer not only prime location, but everything desired as a package. Offering the best of amenities, coupled with the convenience of access to almost everything — properties that serve all your needs under one roof. Your roof. While being at the nexus of all the action, you get to also have your own private oasis. Undoubtedly, centrally-located homes bring you the best of both worlds.
2. Space and feel
Central-living has for the longest time been synonymous with living in denser and smaller homes. With spacious avant-garde interiors being few of the many features of luxury real estate, it comes as a breath of fresh air for urban investors looking for their dream homes. Our lifestyles are changing dramatically, and smaller homes don’t always support interests like gardening, fitness, and hosting family and friends. Living spaces that are also illuminated with natural light, are ventilated, and furnished to the best of taste benefit their occupants in a host of ways. These aren’t just factors that elevate the value of a property, but also the lives of those occupying it. For many buyers, the way a house makes them feel is a key factor in closing the deal.
3. Security solutions
Security and safety have always been as pivotal to buyers as they have been to developers. Measures such as appointing security guards, installing exterior cameras and having security fences have been commonplace for decades now. However, with the introduction of advanced security solutions like facial recognition, motion-sensors, fire alarms and the like, the perception of 360° safety is evolving among buyers. Feeling safe in one’s home is key to feeling comfortable in it. With modern technologies like these, a building is fortified to successfully combat any untimely threats. In essence, luxury is all about exceeding conventional standards of comfort while providing the highest level of safety.
“Today, the elderly appreciate and choose premium living with modern amenities. Until a few years ago, they were not keen on luxury; a comfortable and safe existence mattered more than anything else. The current trend is about seniors wanting to live in the suburbs in premium homes. Their desire for calm, community living and even solitude is met here. Privacy and security come as a bonus. In 2023, with the economy hopefully expanding, this trend is likely to continue.”Ankur GuptaJMD, Ashiana Housing
4. Rising RSH culture
A hike has been seen in the popularity of Retirement & Second Homes (RSH) like farmhouses, row houses, vacation homes, and so on. Mostly an area of interest for families, second homes are also becoming increasingly desirable because they provide a quick getaway at a scale that cities fail to offer. Vacations are just a drive away with such homes, while they also fit in perfectly with the work from home and hybrid work culture. With these weekend homes, ‘workations’ have become a welcome reality. Thanks to the offbeat and decluttered countryside, developing these projects also permits the exploration of modern infrastructure’s full potential in conjecture with nature.
“Luxury is viewed differently by many people. For mobile phone users, it is screen size and camera pixels; in hotels and homes, it is space; in aircraft, it is seat width and leg room. With senior living communities, the expectations are not so much around the product as it is around amenities, services, and facilities. The three basic criteria a well-managed senior living community should fulfil are a zero-headache lifestyle, 100% peace of mind, and engaging activities for them to stay heathy in mind and body. A lot of research goes into designing luxe spaces for them. This year will see more such projects coming up.”Mohit NirulaCEO, Columbia Pacific Communities
5. Sustainability focus
The importance of development excellence that is also operational excellence is encouraging leading developers to seek greener buildings. Being ecological is no longer just about the Three R’s. Offering homebuyers environmentally conscious features has become more of a necessity than a trend. Not just the developers, homebuyers are also shifting focus towards green living. Modern homeowners and buyers consider natural ventilation, solar panels and water harvesting systems while buying a house. Sustainable architecture aims to increase energy efficiency, reduce greenhouse gas emissions, improve indoor air quality and reduce noise levels. These ethical environmental practices not only help the planet, but also have physical and psychological benefits in store for us. Of which, improved air quality, water and energy efficiency and natural temperature regulation are just a few.
Luxury homebuyers now understand the importance of living a high-quality life. A number of natural and social factors today influence their attitudes toward luxury real estate investment, their standard of living, as well as the facets that they find desirable. However, the need to live in the centre of all the action tops it all. In the current luxury housing market, large homes with advanced safety features are in demand, while second and sustainable homes are also growing in popularity.
The writer is Director, Raiaskaran.
