By Mr. Vijay Verma, CEO, Sunworld Group
The growth of luxury real estate in India is going to be on a positive scale for quite some time, as the number of ultra-net-worth individuals are on a rise from few years. Taking into account, one of the most important realty markets in North India- Delhi NCR; there lies a myriad range of luxury and ultra-luxury residential options that can very well cater to the demand of designed and customized abodes, as preferred by HNIs, UHNIs, and NRIs etc. The trend is also fast pacing due to the prevalent favorable economic scenario, there are first time luxury homebuyers looking to develop an asset. Several requisites from their end are sparsely populated areas with seamless connectivity to prime locations of the city. Sustainable living options are on rise, homes designed and constructed on the lines of wellness and health amenities are gaining more attention from fence-sitters.
The Union Budget 2021-22 has also seen some significant initiatives taken for developing infrastructure growth. The government has allocated Rs 20,000 crores to set up and capitalize a Development Financial Institution (DFI) which will act as an enabler and catalyst for infrastructure financing. Also, Rs 5 lakh crore lending portfolio is to be created under the proposed DFI in coming three years. This Union Budget has also allocated Rs 1,18,101 crore, the highest ever outlay, for Ministry of Road Transport and Highways. Such profound measures are likely to bring a whirlwind of change in the infrastructure development.
Such developments are likely to affect the value of the property, and also become a yardstick for the price appreciation. For the Noida and Greater Noida real estate market, Noida International Airport and Film City will play a similar role. Apart from this the Haryana job quota law which will reserve 75% of private sector jobs with monthly pay of Rs. 50,000 will lead to companies shifting to Noida. This will bring in a new set of well-paid corporate executives to the region looking for luxury spaces that represent their stature. This law will be giving a robust growth to real estate in Noida- Greater Noida region, attracting more industries and businesses to set up units. Subsequently, demand for residential and commercial projects will rise. Some of the other infrastructural developments happening in Delhi NCR are widening of NH 24; Dwarka Expressway helping real estate of Gurugram go through an evolutionary phase, Delhi-Meerut Expressway and Delhi-Dehradun expressway etc.
The pattern in which HNIs and UHNIs engage in property purchase is known to real estate players. They don’t just limit themselves when it comes to investing in property, but believe in expanding their assets as a status symbol and also because of the high ROI it offers. Buyers prefer entering in a deal with luxury players who have a legacy in developing such projects, due to their keen eye for selection of furnishings, embellishments and other ornamentation used to make the homes a mark of luxury excellence and opulence. Past few years, luxury home developers have also gone extra mile and collaborated with world class designers, and architects to deliver their buyers unique realty marvels with magnificent aesthetic quality. All these combined efforts of developer and government making scenario positive for real estate investment are likely to maintain stability in the luxury real estate as a whole.
