Buyers are happy to buy homes across all types of properties because prices have dropped in the last few quarters.
There was a silver lining for people who bought homes despite the pandemic. Investors and people who wanted to purchase or improve their homes were paying attention. Suddenly, people from all walks of life were interested in luxury housing.
However, the market for high-end homes was not the same before the pandemic. It has had many ups and downs over the last decade. 2019 was not a good year for real estate in general, but some good things were. Prime markets like Mumbai and Delhi saw a rise in inventory, sky-high prices, and a lot of uncertainty among the people who run them. Stalled projects, lawsuits against developers, and angry buyers were all on the rise simultaneously.
When we think about the luxury housing market in 2010, let’s take a step back and look at what it was like back then. Luxury was only for wealthy people, like HNIs or NRIs, when it was first. Today, everyone can enjoy it. Even NRIs were concerned about money and bought homes that would make them money. There were still a lot of people who didn’t know about it. Luxury was only about where you lived and your pin code. It was about overpaying for a house because of where it stood a lot of the time.
As time went on, though, the definition of luxury changed. As the world became more aware of us, our aspirations rose. As people became more aware, they wanted luxury and value for their money. Value proposition would be the main thing that the buyer of a high-end home would look at.
Many developers started targeting people in business and people at the top of their jobs in 2013 and 2014. This made it easier for people to want to live in a luxury home. A lot of people wanted their homes to look better. Across the board, from safety features and amenities to architecture and interior design, there was a rise in awareness and a desire for better living places.
Because of this, there was a big problem with the plan. Only a few developers could offer luxurious homes, and they charged a lot of money for projects in good places. If you wanted to live in a lovely home, you had to live in Mumbai or Delhi. At this point, it was only available in a few cities, like Bengaluru.
Tomorrow will be a bright one.
Then in 2016, the RERA bill that would change your life was passed. This has changed how people think about the real estate business. It made the whole industry more consistent and stable. It took a year for people to fully understand and follow all of the rules set by the regulator. This only made it possible for residential real estate to get ready for a bright future. People were willing to spend more money on their homes because RERA gave them more confidence that their homes would be safe.
However, most developers’ confidence when they tried to sell luxury homes was wrong. Indian cities had a lot of inventory that would take four years to clear out in 2018. The main reason was that many developers ignored the location and demographics of the area before building a high-end home. The purchase of a home is a big deal for most people, even those who live in the most expensive parts of the country. Because they want the house to meet all of their needs, they will look at everything and make sure it does. The modern buyer wanted a good location and a nice place to stay. There isn’t a one-size-fits-all method here. Everyone who lives in a metro or a big city has a different background and cultures. Developers often don’t do a lot of background research and surveys before investing in a project, so they usually end up not making money.
Indian cities have two main cultures that run the residential real estate market. People from both of these cultures buy and sell homes. First, there was the renting culture. Second, there was the fact that more time was being spent outside than indoors, so more people were out. Since the space was so small, this did not seem to be an issue.
In March 2020, things will be different. The COVID-19 pandemic changed everything about how people thought about their homes, which was a significant change. Consumer behaviour went through a substantial shift. This led to a significant change in how and where people lived and their attitudes about owning a home.
Having a sense of safety
Many people changed their priorities after being confined to their homes during the lockdown. They began to value the sense of security that comes with having a home after being confined to their homes during the lockdown. The pandemic made homeownership more essential and made people want bigger, better-equipped homes.
With people staying in their homes for long periods in the new normal, the demand for homes with the most up-to-date features skyrocketed. Many people already owned a house and wanted to live better. With homes becoming the only place where people can do everything, there is now a need for extra rooms. People want to make their homes more active, like a study room or a gym. A good investment opportunity is a solid reason for people to buy luxury real estate. This shows that people are optimistic about the prices of luxury homes, which is why they buy them. People are also choosing to live in places that have private gardens and houses with decks or balconies because they want to get a lot of fresh air.
Working from home has become more popular with UHNIs, which has led to strong demand for high-end properties that can be used for both living and working. This has attracted real estate developers. As a result, the luxury real estate market in India has changed. Developers are now making ready-to-move-in luxury condominiums that offer a healthy lifestyle, world-class amenities, and unique architecture that fits the buyer’s idea of modern and elegant living.
Knight Frank’s report says that residential sales will keep going strong in 2022 because homebuyers want bigger homes with more amenities. Many foreign businesses and multinationals have come to India because of the ease of doing business (EoDB) and setting up a business. The number of high-net-worth individuals is expected to rise. India’s rise as an economic power means there will be a lot of demand for high-end goods. This type of real estate is expected to keep growing and changing, thanks to domestic use of technology and a mix of aesthetics and luxury that draws national and international businesses to the market.
As the mortgage cost goes down, more people want to buy real estate. This means that the price of real estate can go up because more people want to get a mortgage. Many people purchase REITs or other diversified holdings that aren’t tied to economic cycles or can withstand downturns, so they don’t have to worry about the price of real estate going up and down as much as they used to. Government policies and laws, such as tax incentives, deductions, and subsidies, can help or hurt the demand for real estate.
Luxury homes in Mumbai are expected to be in high demand, but property prices are likely to stay the same even though there has been a lot of demand for homes. After the pandemic, the luxury housing market has seen a lot of movement. People are buying homes across all price ranges because prices have dropped recently, making investing in real estate a good idea, especially in the most expensive parts of the market.
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