Indian luxury properties gain traction; slated to expand quicker in 2023
Ultimately, a growing number of buyers have become interested in luxury housing as a profitable investment option
A major growth driver in the Indian real estate sector is the luxury property segment, according to Financial Express. It continues to gain traction and is slated to expand faster in 2023
The increased interest in the segment can be attributed to the pandemic, as demand for gated/compound houses, retirement and second homes (RSH), villas, and other properties has gone up since then.
Moreover, the work-from-home and hybrid work arrangements have urged people to look for homes that provide a more comfortable lifestyle and ensure overall well-being.
Ultimately, a growing number of buyers have become interested in luxury housing as a profitable investment option.
More: Investment in the Indian property sector increase by 18% in YTD 2022
Non-resident Indians (NRIs) have always preferred investing in real estate, reported The Times of India. In fact, inflow reached USD13.1 billion last year (notably in Mumbai and Gurugram), and that number is expected to increase by 12 percent in 2022.
Another factor contributing to India’s increasing demand in the luxury market is the country’s rising income levels. Due to the great demand for these residences among the wealthy, investing in luxury real estate will result in higher lifetime rental yields.
There is also high demand in luxury communities where buyers can design homes, according to Reeza Sebastian Karimpanal, President, Residential, Embassy Group.
In an article for Business Today, she also mentioned that there will be an increase in first-time homebuyers investing in luxury properties this year due to favourable interest rates and more disposable income.
“The most preferred micro-market in the National Capital Region for high-end properties are South and Central Delhi, with traditionally upmarket areas like Golf Links, Jor Bagh, and Sunder Nagar remaining high in demand, majorly due to limited availability and lush greens, along with the presence of the city’s VVIPs and political power resting here. Localities in South Delhi, like West End, Vasant Vihar, and Shanti Niketan, too attract luxury buyers due to good social and physical infrastructure,” says Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
The Property Report editors wrote this article. For more information, email: [email protected].
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