Real estate has long been regarded as a developing sector; it is also the safest and most reliable investment in today’s market circumstances. Residential real estate and commercial real estate have been the industry’s two primary investment components. Residential real estate investment differs substantially from commercial real estate investment.
In the previous two years, the majority of properties done in the residential / housing industry have been in the affordable housing range of Rs 40 lakh to Rs 60 lakh. Premium or luxury home demand has remained relatively stable. The two Covid lockdowns might have a maximum impact of 5% on the luxury residential segment’s business loss.
The following are the reasons why the demand for luxury homes was unaffected by the shutdown and why it will continue to increase in the future.
Young people’s aspirations – “Dream big to be great in life,” as the adage goes among today’s youth. Today’s youth believes in planning at every stage of their lives, whether it’s for their ideal destination wedding, dream vehicle, or dream home. Luxury housing is motivating for today’s young, who want to live in a home with the greatest facilities.
Changing lifestyles – Over the next several years, there will be an increase in joint family living. Many families’ attitudes have shifted as a result of Covid, and many now reject the traditional idea of nuclear families. Many people have already begun living with their parents, grandparents, uncles, and aunts, to be together if another such huge disaster occurs in the future.
Better facilities and security — With luxury housing comes improved facilities and security. Because of its high degree of sanitization and hygiene management, this type of housing not only provides superior protection against theft but may also protect people from illnesses and viruses. People who live in a gated neighborhood of luxury houses have been more protected, even during the Covid pandemic.
Demand from the special segment – Existing demand from top-level executives, business class, NRIs, and this will continue to grow. External influences are unlikely to have a significant impact on demand in this sector. The pandemic also saw a surge in demand from this demographic, many of whom bought houses primarily for financial purposes.
Furthermore, as the dollar-INR disparity widens, HNIs and MRIs will increase their investment in luxury living.
Price increases are profitable – Another key feature of luxury and premium is the return on investment it provides. Property price increases are unavoidable. Demand-supply imbalances are one of the primary causes of price increases. The demand has been steadily increasing while the supply has been extremely low.
Finally, every Indian desire to possess a home of their own. That desire has grown stronger as a result of the pandemic. People who were holding off on making a purchasing choice will help to boost total housing demand in the coming years.