Impact of COVID-19 on the Luxury Real Estate Market

With the beginning of the year 2020, the world economy received quite a crunch especially, sectors like real estate and tourism and tourism. While, medium-income groups themselves have been facing a crunch, pertaining to home buying. However, the global Luxury Realty sector is anticipated to increase at a considerable rate during the current forecast period of 2020 and 2025. At the beginning of 2020; the market was mounting at a steady rate and with the rising implementation of stratagems by the key players, the market is expected to rise over the anticipated horizon (as per Market Watch, a renowned international Market Research).

The Impact

Luxury Realty Unaffected- Focusing on The Brighter Side

Amarjit Bakshi (CMD, Central Park), had recently spoken to Financial Express that when compared with the affordable home segment; the luxury homes market has remained largely unaffected by the COVID-19 lockdown. Further, he said that high-end individuals (HNIs) and ultra-high-net-worth individuals (UHNI) are to be the most important drivers of the luxury real estate market.

Demand for Larger Homes with Yoga and Wellness Rooms Have Risen

With COVID-19 around, people have become more conscious about health and wellness. As a result, luxury home buyers are looking for amenities like yoga rooms, gyms, etc. The prominence has been placed on property management followed by indoor and outdoor sanitization systems. Installation of air filtration systems is also an important development in terms of the luxury realty market. Another amenity in demand is the installation of home automation systems that have sensor-based elevators and hands-free faucets in the washrooms. Automatic shoe-cover dispensers, touch-free soap dispensers have become the new essentials to adapt to the “new normal”.

Price Ranges of Ready-to-move-in Flats are Still on Demand

Ready to move flats are fairly in demand, for flats of worth, Rs. 2 Crore to 5 Crore as stated in a recent article in The Hindu. The article goes on to state that some of the builders have even made schemes to adapt to the current scenario (basically, 10:90 & 20:80 schemes). These schemes have been quite prevalent in major cities including Gurgaon, Delhi and Noida.

Should You Plan on Investing in Luxury Realty?

Since times immemorial, investment in real estate has always been an ideal investment for the upper-income groups. The backdrop of disparaging rupee value and falling oil prices have additionally heightened the predictions of investment by the NRIs and international investors. After the COVID-19 era, the scenario is most probably going to consolidate luxury home-buying, especially by reputable market players.

Luxury Real Estate- Key Localities in Noida-Greater Noida-Yamuna Expressway Belt

Having said the above, some of the areas of the Noida-Greater Noida-Yamuna Expressway Belt that you could attract luxury home buyers are:

Indian luxury real estate market has been mostly resilient during these most challenging times. It may well be implied that the future looks pretty bright for this segment. We at Wealth Clinic; could help you find the perfect property to invest in. Out Call or connect with us over our email address.

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