Author: Mr. Vijay Verma, CEO, Sunworld Group
Since the number of ultra-net-worth individuals is on a rise for few years, the growth of luxury real estate in India is going on a positive scale for quite some time. Taking about Delhi NCR, this region has a myriad range of luxury and ultra-luxury residential options that can very well cater to the demand of HNIs, UHNIs, and NRIs etc.
The trend is also fast-paced due to the prevalent favourable economic scenario. Also, there are first-time luxury homebuyers looking to develop an asset. Sustainable living options are rising. Homes designed and constructed on the lines of wellness and health amenities are gaining more attention from fence-sitters. Several requisites from their end include sparsely populated areas with seamless connectivity to prime locations of the city
The Union Budget 2021-22 has also seen some significant initiatives taken for developing infrastructure. 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 the coming three years. This Union Budget has also allocated Rs 1,18,101 crore, the highest ever outlay, for the Ministry of Road Transport and Highways. Such profound measures are likely to bring a whirlwind of change in infrastructure development.
Such developments are likely to affect the value of the peripheral properties, 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 new Haryana job quota law referring to the reservation of 75% of private-sector jobs will most likely lead to companies shifting their offices to Noida. This is expected to bring in a new set of well-paid corporate executives to the region who will ultimately look for luxury spaces that match their stature. This law unknowingly will be giving robust growth to real estate in the 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 a 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 into a deal with luxury players who have a legacy in developing such projects, due to their keen eye for the selection of furnishings, embellishments and other ornamentation used to make the homes a mark of luxury excellence and opulence.
During the past few years, luxury home developers have also gone the extra mile and collaborated with world-class designers, and architects to give 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.