If past statistics are anything to go by, India’s luxury housing market has remained largely insulated from a slowdown. The luxury market is driven by end-users at the top of the pyramid, and unlike affordable and mid-income housing, it depends more on personal wealth than on home loans.
According to a recent industry report, the Delhi-NCR market continues to dominate as the most preferred region for luxury homebuyers. This is followed by Mumbai, Bengaluru, Hyderabad and Pune.
The sector is currently attracting interest from several HNIs across the country, with reports stating that 67% of high-net-worth individuals plan to invest in luxury housing this year. Similarly, NRI investment in the sector, which was $13.1 billion in 2021, is bound to increase by 12% this year. The emergence of NRIs and high-net-worth individuals (HNIs) in the real estate space has contributed largely to the growing demand for luxury housing. In addition, a new emerging consumer segment is millennial homebuyers looking to invest in real estate.
Bengaluru’s contribution to total luxury housing sales has doubled from the previous year’s 5% to 10% in H1 2022. When it comes to the luxury market in Bengaluru, the epicentre of growth has been North Bengaluru, home to global investments and luxury lifestyles. According to a report by Knight Frank, North Bengaluru recorded the fastest sales growth of 134% Y-o-Y during H2 2021, followed by the South and East. This sales boom has encouraged developers to launch new projects as well as new phases in existing projects.
Flexible layouts
Post-pandemic, since buyers are more interested in a global and evolved way of life, demand has firmly centred around international design, exclusivity, and world-class specifications. Today’s homebuyers seek bigger homes with flexible layouts, designated work areas, more natural light and ventilation, outdoor spaces, and other features that cater to their overall wellbeing.
Further, the hybrid-work model has seen HNIs and UHNIs invest in weekend homes or private villas. Simultaneously, there has been a rise in demand for ready-to-move-in projects, eliminating delays in possession.
There are several factors that have contributed to making North Bengaluru the most sought-after real estate destination. The emergence and growth of the Kempegowda International Airport at Devanahalli have resulted in massive infrastructure investments. With the upcoming metro rail project, the region will soon be one of the best connected in the city. Its fine social infrastructure, including international schools, retail centres, and multi-specialty hospitals, has also added to its position as a real estate hub.
North Bengaluru is home to some of the largest IT/SEZ and business parks in the city. The area and its vicinity have witnessed the development of the software and hardware technology park, the Devanahalli Business Park, and the Aerospace Park, making it an attractive investment destination.
Green spaces
Developers have taken advantage of the lush surroundings and generous views to create properties that strike the right balance between luxury and modernity, including plotted developments, villas, condominiums, fully-serviced homes, branded residences, and more. Builders have concentrated upon creating properties with multipurpose rooms, designated offices, and quiet spaces or relaxation areas. Lap pools and lounge pools have become essential requirements, along with good ventilation, lighting, and enough green space.
Technology, sustainability, hybrid work cultures, and tailor-made amenities that support lifestyle needs drive the crux of designing homes. Discerning buyers look not just at superlative and lavishly designed residences but also at features that add to a holistic living experience, keeping sustainability and wellbeing at the centre.
Above all, consumers pursue homes that reflect their stories — personalised and thoughtfully designed spaces that match the evolving definition of luxury. IoT-enabled developments, advanced safety measures, and other technological improvements have fostered connected communities and more opulent lifestyles. As homebuyers continue to prefer larger homes, better amenities and services will keep them interested in investing in this burgeoning asset class.
For homebuyers looking to invest in properties located in North Bengaluru, now is the ideal time, with much of the region still in the development phase. A regular 2BHK apartment costs upward of ₹45 lakh.
The enormous potential of commercial growth in North Bengaluru, anticipated to capture 30% of the city’s overall office absorption by 2025 and buoyed by the demand for satellite offices, will lead to an increase in the supply of residential catchment. From an investment angle, the region will continue to outshine its eastern and southern counterparts.
The writer is president, Residential, Embassy Group.
Published - November 18, 2022 04:41 pm IST
