Around 75 percent wealthy people will look to buy luxury properties, worth more than Rs 5 crore, over the next two years in big cities as well as holiday destinations, according to a survey.
India Sotheby's International Realty, one of the brokerage firms in luxury real estate space, has conducted a survey of over 200 HNIs (High Net worth Individuals) and ultra-HNIs to gauge the mood of the luxury real estate buyers across India's top 8 cities/regions -- Delhi-NCR, Mumbai, Kolkata, Bengaluru, Hyderabad, Pune, Chennai, and Goa.
''An overwhelming 76 per cent respondents said they would look to buy real estate in the coming two years,'' according to the report 'Luxury Housing Outlook-2022'.
This signals a very strong turnaround in sentiments for real estate amongst the wealthy in India, it added.
Out of the 76 percent wanting to buy real estate, 89 percent would prefer luxury homes (city apartments, city bungalows and holiday homes), while the rest 11 percent prefer premium commercial real estate.
As per the report, around 26 percent of the respondents did purchase real estates during the last 18 months, mainly to upgrade their lifestyle and encash good investment opportunity.
Demand for luxury real estate bullish despite COVID
In the 2-3 years preceding the COVID pandemic, the consultant noted that HNIs and UHNIs were mostly buying luxury homes for self-use.
''The fact that people picked 'a good investment opportunity', as a strong reason for buying luxury real estate points to a bullish outlook on luxury home prices,'' said Amit Goyal, CEO of India Sotheby's International Realty.
''Unlike some of the developed countries, where the price increase frenzy seems to be cooling off, in India, I believe, we are at the start of a secular price rise,'' he added.
Among the prospective buyers of luxury residential properties, 29 percent expressed their desire to acquire a holiday home.
For a luxury city apartment or villa, the most chosen budget was Rs 10-25 crore, with 69 percent respondents picking this bracket. Around 21 percent would prefer to buy in the bracket of Rs 5-10 crore and rest 10 percent above Rs 25 crore ticket size.
The sweet spot of pricing for a luxury holiday home was between Rs 5-10 crore with as many as 71 percent of the respondents opting for this price band.
About 29 percent of the respondents were even willing to spend more than Rs 10 crore for the right vacation home.
MAIA Estates founder and CEO Mayank Ruia, said: “There has been a healthy demand for luxury residences, which focus on complete lifestyles designed within. We see this trend continuing in 2022.'' Great product and trusted brands see the best of customers and sales as well, Ruia said.
Goa-based luxury homes developer The Bennet and Bernard Company Chairman Lincoln Bennet Rodrigues said the luxury holiday homes segment fared well in the context of the pandemic as the target group for luxury offerings was not impacted.
The wealthy people further took advantage of the market conditions to invest, thereby creating a niche for second homes, Rodrigues added.