COVID -19 and the resultant lockdowns made people rethink and ponder over their decisions. It reinforced the importance of having a diversified wealth and investment portfolio. More than that, it once again brought to focus the importance and benefits of owning your own home. A home that was not just your abode, but also a temp school, an office, a makeshift gym and so much more!
This has resulted in a thriving real estate market that has especially picked up in the post-pandemic era. A segment that has picked up and is currently on the boom is the luxury housing segment. The share of luxury home sales in total housing sales has almost doubled for the top cities in the country. And it is the end-users who are driving these numbers. Indian luxury home sales have shown a steep rise in the first half of 2022.
For the unheard, luxury homes are defined as those properties which are priced at ₹1.5 crore or above. According to a report published, more than 25,000 luxury housing units were sold in the first half of the year. These figures comprise around 14% of total home sales. Developers have stepped up to meet the demands for luxury homes. About 28,000 such units were launched across the cities in the first half of 2022.
In Pune alone, around 208 units worth Rs 1,400+ crore were sold. This figure is almost double the sales in the year 2019.
Real estate experts predict that these sales were driven by people wanting to upgrade the quality and size of their homes. After the pandemic, homebuyers are now looking at upgrading their homes, which cater to their increasing demands of space and comfort. This had led to the rise in demand and launches of premium or luxury homes. Also, a lot of high-net-worth individuals, and NRIs, are buying luxury homes as an investment opportunity for the future. The exchange rate and a comparatively weaker Rupee are working in the favour of NRIs.
Housing prices have been more or less stagnant in the past few years across all segments and price brackets. Well-informed buyers have used this as an opportunity to buy right-priced assets for wealth creation.
Driving the demand are also millennials, who previously favoured renting homes to buying them. Their shifted focus has surged the demand for luxury residences priced above Rs 1 crore, also propelled by shifting needs in the post-pandemic era.
Their six-figure wages have empowered them with the financial means to invest.
Housing loan interest rates have been at an all-time low, and this has further helped the buyers. With current interest rates, home loans provide significant savings while also developing an asset for end-use or investment. In fact, these reduced interest rates allow borrowers to increase the loan amount and opt for a more opulent property with amenities that cater to a plush lifestyle in high-end neighbourhoods.
The upward recovery of the economy has breathed in a new lease in the luxury real estate segment. 2022 so far has shaped up to be a solid year for high-value property purchases.
The pandemic problem has resulted in a rebound in luxury real estate, and with practically everyone betting on a fast V-shaped recovery with the advent of the COVID-19 vaccine, 2022 is shaping up to be a solid year for high-value property purchases.
The pandemic problem has resulted in a rebound in luxury real estate, and with practically everyone betting on a fast V-shaped recovery with the advent of the COVID-19 vaccine, 2022 is shaping up to be a solid year for high-value property purchases.
At Pyramid Lifestyle, the vision to create a thriving community has been our sole trigger for crafting avenues and builds of joyful co-existence. We take pride in designing homes that challenge our imaginative strength and stand strong on our foundation of precision, purity and panache. To know more about us and our projects, visit www.pyramidlifestyle.com
Sources:
- https://www.businessinsider.in/business/news/discounts-favourable-exchange-rates-are-driving-up-luxury-home-sales/articleshow/93704498.cms
- https://www.google.com/amp/s/m.economictimes.com/industry/services/property-/-cstruction/luxury-housing-sales-in-mumbai-and-pune-at-a-four-year-high-report/amp_articleshow/91174059.cms
- https://www.google.com/amp/s/m.economictimes.com/industry/services/property-/-cstruction/luxury-housing-sales-in-mumbai-and-pune-at-a-four-year-high-report/amp_articleshow/91174059.cms
