Luxury housing in India sparks interest in domestic buyers

Demand for independent houses in the ultra-luxury segments increased in Mumbai

Ultra-high-net-worth individuals (UHNWIs) in India are planning to buy new homes in 2022. This can be attributed to the growing UHNWI population, according to The Economic Times.

Investors and homebuyers have focused on buying and upgrading homes during the pandemic. It was also during this period that luxury housing has piqued their interest.

The ultra-rich, high-net-worth-individuals (HNIs), or non-resident Indians (NRIs) were the only ones who could afford luxury back then, as the Indian consumer was still evolving, and global exposure was just gaining momentum.

However, customers started to consider value proposition — they desired luxury and a good return on their investment.

The pandemic and the rise of the work-from-home trend among ultra-high-net-worth individuals (UHNWIs) resulted in a strong demand for high-end homes that may serve as catch-all compounds, live-work spaces, and provide a resort-like living experience. 

As a result, the Indian luxury real estate market has developed, encouraging developers to build ready-to-move-in luxury condominiums that offer a healthy lifestyle, world-class amenities, and distinctive architecture that supports the buyers’ vision of modern and elegant living, shared The Hindu.

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According to real estate specialists, demand for independent houses in the ultra-luxury segments increased in Mumbai, especially during the two waves of the pandemic.

According to the Knight Frank Wealth Report 2022, Indian UHNWIs prefer to invest in properties in the domestic market, followed by the overseas markets of the United Kingdom, United Arab Emirates, and the United States.

The report also revealed that Indian UHNWIs are currently allocating 29 percent of their wealth to primary and secondary residences. 

“Most of the buyers buying properties in India are taking advantage of the lower mortgage rates and all-time-high equity market. Some of them are reinvesting to save capital gains from sale of equity shares or a stake in a start-up or property,” said Amit Goyal, CEO at India Sotheby’s International Realty in a statement for Money Control.

The Property Report editors wrote this article. For more information, email: [email protected].