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January 29, 2024
The Luxe Lifestyle Revolution: A Deep Dive into India’s Real Estate Landscape

Real estate has long been a trusted investment avenue in India. In addition to being steady and appreciating, the asset in India holds significant cultural implications, reflecting stability, status in the societal hierarchy, and a sense of belonging. Therefore, the real estate sector in the country has always been robust.

However, it is in this decade that the sector has performed in a groundbreaking manner, with the residential market in the country being placed in one of the top ten appreciating housing markets in the world. Indeed, the real estate industry is now one of the country’s economic pillars, with the sector projected to contribute up to 13% to the GDP by 2030.

With growing disposable incomes, people today are more likely to invest in real estate than ever before, a trend that is reflected in the growing real estate sales we are witnessing firsthand. According to a recent study, it is the luxury and ultra-luxury housing segment that will experience the most growth in the coming months, owing to the fact that the uber-rich population in the country is projected to grow to 100 million.

The burgeoning number of ultra-rich people in the country has led to surging interest in luxury real estate, which is viewed not only as a propitious, well-generating asset but also as a means to live the luxury lifestyle that they have always aspired to. However, beyond epitomising an elevated lifestyle, these residences also provide larger living spaces with tranquil green spaces, world-class amenities, opulent designs, and the best locations.

A recent survey conducted by a leading real estate developer revealed that a startling 71% of HNIs and UHNIs are planning to invest in real estate in the next 12–24 months, with capital appreciation overtaking lifestyle elevating as the primary motivation for investing. The survey also revealed that a phenomenal 79% of HNIs and UHNIs were confident about investing in the economy as compared to 59% the previous year.

The increased interest in real estate investment can also be attributed to the belief of 56% of HNIs and UHNIs that the Reserve Bank of India is likely to reduce interest rates in the coming years. The survey also revealed that approximately 83% of the HNIs and UHNIs appraised have invested in multiple luxury properties, showcasing the trend of having a diversified portfolio.

Therefore, in addition to investing in primary residential development, 34% of HNIs and UHNIs invest in commercial real estate, with 25% of them owning vacation homes and 20% buying farmhouses. Among the ultra-rich, over 35% are interested in investing in holiday homes in Goa. Apart from primary residences, 34% own commercial real estate, 25% own holiday homes, 21% own agricultural land, and 20% own farmhouses. Out of the group surveyed, approximately 12% showcased interest in offshore real estate, with Dubai and the UAE appearing to be their primary selection.

Final Thoughts

India’s real estate landscape is reaching new heights with a surge in luxury living, blending cultural reverence for homeownership with opulence. The sector, fueled by high-net-worth individuals, emerges as a symbol of affluence and economic growth. Beyond mere dwellings, homes now embody prosperity.  As high-net-worth individuals increasingly invest in opulent residences, the sector stands as a beacon of economic growth, blending financial prudence with cultural sophistication. 

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