Affluent
home buyers want their home to reflect the financial and social standing.
Accordingly, premium and luxury segment in India has seen unprecedented rise
and growth and developers are pouring into cater to the increasing demand.
Premium homes today no longer means only expensive units which are centrally
located, large and comfortable, but provide you respite from the city's hustle
and bustle. Demand for luxury homes in India is growing and the premium segment has grown to a whole new
dimension adorned with innovative modern technologies. They have become a lifestyle statement
for the desiring affluent class.
Rapidly
growing high net-worth individuals (HNIs), increased aspirations and changing
lifestyle are the factors behind luxury living being redefined in India.
Premium homes boast of increasing demand due to rising income level and
affluent lifestyle desired by young professionals. As the buyers are
increasingly demanding luxury living experiences imbued in the residential
units, developers are coming up with more and more premium homes. And when it
comes to his dream home, super luxury is the ultimate deal clincher.
Developers, on their part, are trying to outdo each other in breaking fresh
ground in this exclusive segment.
Describing
super luxury
So, how does one define super-luxury living? Going by what developers and architects have to say, there are a host of contributing factors, ranging from design, size and facilities to the location of the property.
Location is a key factor. Almost all luxury properties in the heart of the city claim to provide paradise like comfort and free from chaos . But, as Anuj Puri, chairman and country head, Jones Lang LaSalle India explains, the ideal location would be within the heart of the city, not on its periphery. "Customers want their homes to be located within the city, but the moment they step into the compound, they should be transported away from it. The view, the calm ambience - is the clinching factor."
Developers, on their part, are trying to outdo each other in breaking fresh ground in luxury. From a typical golf-based project to spa-based, wellness or destination-based, they are experimenting with various themes. "The trend is to focus on exclusivity - which, generally, an independent villa provides," says J C Sharma, vice chairman & managing director, Sobha Developers.
Builders are translating this exclusivity quotient into enclave format, modelled on East Asian luxury villa developments in Bali, Phuket, Koh Kood, etc. The key here is to have fewer units, in 25 to 50 range, with larger plot sizes, giving the privileged residents the much sought-after privacy and physical and visual space.
"Generously proportioned homes offering an un-obstructed and breath-taking view are a key consideration for a luxury home. Developers thereby provide large apartments and condominiums associated with luxury," states Sanjay Raj, CEO and ED, Golden Gate Properties.
Furthermore, these residences are also seeing the influx of global luxury brands. Indian developers like Lodha Group, Oberoi Realty, Prestige Group, DLF, Rohan Lifespaces etc. are partnering with these brands offering products in the apartment and condominium space. This includes the entry of super-luxury brands like Marriot, Ritz Carlton and Four Seasons in Bangalore, Armani in Mumbai and Swarovski and Trump in Pune.
At the end of
the day, however, the two most important features needed for a super luxury
apartment remain a lot of space and a prestigious address.
The Target
Segment:
India has over
85,000 Ultra High Net worth Individuals (UHNIs) and their numbers are fast
swelling. Be it the designer clothes they wear, the swanky cars they drive or
the extravagant holidays they take, the young and rich believe in the credo of
instant gratification. And when it comes to their living space, they will
settle for nothing but the most exclusive and expensive. However, money is not
the only criteria to ensure entry into these projects. Developers are very
conscious of maintaining the exclusive quotient of their clientele. So, many of
these luxury homes are 'by invitation only,' one of them being Lodha Group's
'World One', touted as the World's tallest residential towers. The same
exclusivity has been maintained at DLF's super plush project 'The Aralias' in
Gurgaon where only a select few have been invited to become a part of this
lavish lifestyle.
The dynamics of the super luxury segment are radically different from the rest of the residential market. For this segment, the higher the ticket size, the more exclusive the property becomes as it is less accessible to the masses.
According to Uzma Irfan, executive director - corporate communication, Prestige Group, "High-end homes have today evolved into a statement among the discerning consumer. Such homes are not just about pricing but the result of several qualities, starting with the aesthetics to the amenities to signature styles and so on."
"Someone
looking at a Rs5 crore home is not really looking at a bank loan," claims
Kruti Jain of Kumar Urban Development Ltd.. "They always buy these homes
out of profits they make in their business and excess income;. And since the
supply is also limited, it's in tune with the market demand", she adds.
Price tag of
Luxury Homes differs across cities:
Needless to
say, super luxury comes with a heavy price tag. And homes for the ultra-rich
clearly reflect it. These homes are mostly priced at Rs 5 crore and may go up
to Rs 25-30 crore depending on location and other specifications.
Affirming
this, Mukesh Bhagtani, CEO, of Jaycee Homes says, "Pricing largely depends
on the location. In addition are amenities, the type of construction and the
interiors. Developer also tries to keep it unreachable from the masses by
attaching a large premium to the price. Only then it becomes exclusive."
Going by the
varied markets across metros super luxury housing is priced differently. In
Bengaluru, anything above Rs 6000 per sq ft could be considered ultra-luxury.
But it may not be the same in Mumbai where prices above Rs 15,000 per sq ft
come under the super-luxury bracket. On an average, the pricing of a super
luxury apartment would be from Rs 8 crore onwards. Whereas in tier-II cities
houses above Rs 3 crore come under this segment while in a tier -III city
anything upwards of Rs 1 crore will be considered super luxury.
Being a niche
market, the demand for super-luxury housing is not volatile. The segment
remains unaffected by hardening interest rate stance taken by RBI.
Major Luxury
Housing Markets: Mumbai and NCR
Historically,
Mumbai has not just been the financial capital of India but also the 'luxury
capital' of the country. Mumbai's strong real
estate market fundamentals are
reflected in all segments, from office space and luxury retail, to luxury
housing. Although the port city is constrained for space, it continues to
dominate other property markets across India and remains the first choice for
luxury brands, film stars, multinationals and global conglomerates. Across the
world, luxury destinations have flourished as extended suburbs of the main
city, thus supplementing the main city. For instance, in the Delhi-NCR region,
Gurgaon has fared better than Delhi as a luxury destination. In contrast, a
port city like Mumbai does not have that luxury. Despite this, Mumbai has
witnessed the maximum number of entrants into the luxury segment in the last
one year.
Devang Varma, director of Omkar Realtors & Developers, insists that Mumbai will not lose its tag of the luxury capital of India for quite some time. Poor infrastructure is an issue in Mumbai and new cities like the NCR are coming up but Mumbai is definitely not sliding on this front. In fact, a lot of redevelopment projects in Mumbai are offering luxury residential houses, he says.
Mumbai, Pune,
Bangalore, Delhi, Gurgaon and to a certain extent Chennai are the most
responsive markets for luxury housing today. Currently, the overall demand for
luxury housing is stable.
"To a
certain extent, the growth in new cities has been better than in Mumbai but
even in these locations, infrastructure development has not kept pace.
Consequently, these locations are also becoming congested. Although there is a
perception that multinational brands now prefer emerging markets to Mumbai's
saturated market, the fact is that the money is still in Mumbai, with NCR being
a strong alternative," explains Varma. Bangalore, Pune, Hyderabad and
Chennai are preferred, more as 'test run' destinations, he adds.
Abhay Kumar,
CMD of Grih Pravesh Buildteck, also believes that it is too early to say that
these new destinations can match Mumbai. Nevertheless, he agrees that the
luxury real estate market is not exclusive to Mumbai any more. These other
cities have various limitations, as far as super-premium projects are concerned.
They still lag behind Mumbai with respect to professionalism and transparency
in dealings. Political will also plays a major role, explains Kumar.
"Delhi and Mumbai remain the favourite destinations for large government
projects and installations and this creates demand for realty in a big
way," says Kumar.
Although
emerging cities have several advantages, some analysts believe that these
destinations have been unable to create an image that attracts luxury brands
and financial institutions. Regulatory provisions in Mumbai may be a far cry
from what is desired for real estate. Yet, the city has an aura associated with
luxury living. Moreover, one needs to understand the psyche of an investor. No
market has given better returns on investment than Mumbai's luxury real estate
segment. With several upcoming and planned infrastructure projects, the push
towards redevelopment and taller buildings, Mumbai seems set to retain its top
position in India's luxury realty market.
Luxury with
Unique Positioning:
When it comes to providing amenities to a demanding clientele, sky is the limit. On offer are niche services that are a step-up from a lifestyle that the affluent class has already been exposed to.
Luxury segment
offers a range of homes to the target buyer – apartments, penthouses, villas,
row houses, bungalows, etc. They are usually laced with green spaces, parks or
golf courses.
Branded luxury homes
Innovative techniques are being introduced in luxury segment by developers. Branded residences are an important emerging concept in luxury housing, which are developed by developers in collaboration with international luxury hospitality or lifestyle brands. In some cases, developers may even tie up with celebrities for branded residences.
For the World Towers residential project in Mumbai, Lodha
Group has collaborated with Italian designer Giorgio Armani’s interior design
studio, Armani Casa. The project is the tallest residential tower in the world
and apartments and mansions are priced around Rs 12 crore and Rs 75 crore
respectively.
Golf/ Polo courses
High rises with well maintained golf courses in the posh localities of a city has been regarded as symbols of high living. Golf courses stand for affluent lifestyle and social status. Now developers have moved from the stereotyped golf grounds to polo grounds to give the luxury homes a posh status.
M3M
India paves the path for other developers to follow as they have come up with
the first polo themed project in India. M3M Polo
suites offer exclusive concierge services to residents which include
hiring/leasing of horses to the interested polo players. M3M
India signed an agreement with Equisport, a pioneer polo sport agency, to give
a unique polo living experience to the residents.
Themed
villas
Theme
based housing is new trend in Indian realty market. Theme based villas are the
latest fads to impress potential luxury home buyers. Luxury villas are attached
with a distinct snob value in congested big cities. Developers like Emaar MGF,
DLF have come up with projects based on various architectural themes. Different
architectural and cultural elements from different societies like Mexican,
Spanish, Arabic, etc are imbued in these residential villas. Marbella,
developed by Emaar MGF, is one such project which houses 4/5 BHK villas build
in Spanish style. Theme based residential
luxury villas in Bangalore, Delhi, Mumbai, Gurgaon, Pune and Chennai have
attracted NRI buyers from West Asia, Singapore, etc.
Smart Homes
Developers
are keen to incorporate technological advancement into the realty scenario.
Latest technology and gadgets have been used to create intelligent living
spaces inside the apartments/villas. Prominent
features of luxury housing includes digital locks, electronic surveillance
systems, temperature control, wireless communication for Internet, in-house
entertainment, etc.
The
emphasis is to create intelligent and smart
home in a techno savvy era.
Systems with sensors are being used for controlling light, ambiance and
temperature inside the house. Technology is used to provide a galore of
specialized services – from concierge services to medical consultation.
Vertical
growth of luxury homes
As
land is scarce in central areas of most of the big cities in India, luxury
homes are being developed vertically – sometimes an apartment built over an
entire floor. The luxury homes come with terraced gardens, indoor swimming
pool, private lounges, etc. Bathroom fittings and kitchen interiors are of
excellent quality and some of the developers have come up with ultra luxury
services like exclusive lift and automatic teller machine.
Developers are even coming up with customized homes like boutique luxury homes which are set to redefine living experiences for residents.
(Sources:
Realty Plus – October 2013, Moneycontrol.com 20th August 2013, Commonfloor.com – 4th January 2013, Track2 realty.com)
