Luxury Home Segment Attracts Developers Amidst Declining Sales
With home sales experiencing a continuous downward trend, real estate developers in India are strategically pivoting towards the luxury home segment. Their focus has shifted to targeting non-resident Indians (NRIs) and high net-worth individuals (HNIs) seeking exclusive villas in the country. This strategic shift aligns with the current market dynamics, as demand within the luxury home segment is experiencing substantial growth.
Prominent developers such as Sobha Developers, DLF, Kalpataru, Nitesh Estates, Unitech, Omaxe, Royal Palms, Lodha Developers, and Marvell Realtors are actively developing projects in major cities across India. These cities include Mumbai, Delhi, Pune, Goa, Bangalore, and Kerala. The average price range for these luxury homes typically falls between Rs 3 crore and Rs 50 crore, catering to the affluent demographic.
Nitesh Shetty, chairman of Nitesh Estates, stated, “Our customers typically belong to the top management in various corporate firms while some are overseas Indians”. Nitesh Estates has strategically positioned its luxury home offerings in Goa, Bangalore, and Chennai within the price bracket of Rs 5 crore to Rs 8 crore. Mirroring this approach, numerous real estate companies have initiated marketing their projects in overseas markets. These initiatives include organizing property exhibitions and strategically establishing sales offices in key international locations like the UK, US, and UAE.
The Bangalore-based firm, Nitesh Estates, is actively engaging in overseas marketing strategies. They are appointing sales executives and increasing participation in property exhibitions to tap into the NRI market. While the presence of luxury homes has existed for a period, the segment currently holds an estimated value of Rs 2,000 crore, encompassing approximately 30 million potential buyers in India.
Typically, these opulent residences are situated on private, gated roads equipped with sophisticated state-of-the-art security systems, including camera surveillance, ensuring privacy and exclusivity. Furthermore, these premium homes are often complemented by an array of luxurious amenities, including spas, multi-purpose courts, climate-controlled swimming pools, gymnasiums, and dedicated business lounges, catering to a luxurious lifestyle.