The Rise of Farmhouses: A New Status Symbol for the Wealthy
Real estate trends reveal a growing interest among high-net-worth individuals (HNIs) in farmhouses, transforming them into a sought-after subculture for the affluent. This trend has garnered significant attention, particularly following the unfortunate incident involving prominent real estate developer Mr. Ponty Chaddha, who was tragically killed at his farmhouse. While a somber event, it underscores the increasing desirability of farmhouses among the wealthy.
The tragic incidents involving Mr. Chaddha and actress Laila Khan, both occurring at farmhouses, highlight the increasing demand for these properties among the affluent. Two decades ago, farmhouses were a rarity, primarily found in rural areas. However, over the past decade, there has been a surge in the development of farmhouses on suburban lands, with recent studies indicating a substantial presence in nearly every suburban area. The rise in the number of HNWIs directly correlates with the proliferation of farmhouses.
Newly affluent individuals migrating to metropolitan areas often seek connections with established millionaires within the city. Farmhouse parties serve as a valuable platform for networking and social climbing. These gatherings, often exclusive to millionaires, enhance the perceived status associated with farmhouse ownership, making it a desirable asset in cities like Delhi, Mumbai, and other major metropolitan centers. Emerging millionaires from Chandigarh, Haryana, Punjab, and parts of Uttar Pradesh, upon relocating to metropolitan areas, utilize farmhouse parties to integrate into the existing affluent circles.
Farmhouse parties, frequently graced by the presence of Bollywood stars or international models, provide an avenue for ostentatious displays of wealth. Compared to owning a second home within the city, farmhouses offer a more affordable alternative. The lower land prices in the outskirts make them an attractive investment for millionaires. The ease of obtaining construction permits for agricultural land, with regulations permitting up to 10% real estate development, further contributes to their appeal.
Real estate reports indicate that the National Capital, Delhi, boasts the highest number of farmhouses, with 2,700 such properties occupying a total of 7,000 acres. The Delhi government's liberalization policy, including revisions to the floor-area ratio, has incentivized farmhouse construction in the city's outskirts.
Mumbai-based real estate consultant Santosh Naik reveals a substantial demand for farmhouses in other cities as well, estimating nearly 200,000 individuals seeking such second homes. Anuj Puri of Jones Lang LaSalle India emphasizes the lower tax structure and cheaper rates of agricultural land as key factors driving the profitability of farmhouses, originally intended for farmers, not city dwellers.
Farmhouses have evolved into popular venues for hosting weddings, parties, and other gatherings. Delhi-based entrepreneur Sushant Khanna envisions a dedicated website for farmhouses, simplifying the process of locating and booking these venues for family functions and events.