Listen to the article
The luxury real estate market has fared extraordinarily well in recent years, without a doubt. Premium condominiums, luxury housing, and villa developments are selling like hotcakes in India. It is attracting attention not just from local purchasers, but with the implementation of RERA in the industry, which has resulted in favorable regulatory measures, improved transparency, and more consolidation, an increasing number of NRIs are considering it as a profitable alternative for investing.
Even though the Coronavirus outbreak has delayed the investment rush of High-Net-Worth Individuals (HNIs), the recovery of property markets has strengthened the uber-interest rich’s in the real estate industry. According to a recent poll, HNIs and ultra-rich investors are highly interested in investing in the property market, particularly in houses worth more than Rs 5 crore. When the Coronavirus crisis was in effect, the wealthy investor class massively invested in luxury real estate for personal reasons rather than for appreciation or ROI. It seemed reasonable not to explore because of the uncertain times. However, with the economy gradually opening up, the ultra-rich are again bullish on investing in luxury properties. If the cities of Delhi and Mumbai get considered as instances, the year 2021 witnessed many purchases of luxury homes in India of over 100 crores.
While the industry did experience a brief pause owing to the second wave of COVID-19 last year, it quickly recovered once the wave passed, and reports indicate that it will continue to develop substantially in 2022. It is not simply the luxury property itself that is motivating individuals for upgrading to luxury housing, but also the lifestyle.
Why is the luxury real estate market expected to rise in 2022?
Let’s take a deeper look at the luxury real estate trends in 2022 fueling the sector’s growth.
- An excellent location that gets well linked with a nice atmosphere, close to the city center, facilities, and workplaces, makes the location a vital aspect in the choosing of a house. While individuals crave connectedness, open spaces within and outside of living places are highly critical to people, particularly after COVID-19, to preserve their physical and mental well-being. The health advantages of living in big homes surrounded by nature and a pleasant atmosphere are enticing purchasers to invest in luxury residences. Some well-traveled individuals are millennials who have been exposed to luxury so closely that they get prepared to spend money on luxurious lodgings that give a rich ambiance.
- Luxury property also gets preferred due to technological properties. These include home devices that give the owner control, ease, comfort, and security such as CCTV, flash cameras, and biometric gates at every edge in the elevators, hallways, and common spaces.
- One important reason why individuals choose luxury houses is that they want to live a lifestyle that incorporates the work-from-home concept while still enjoying the comforts of luxury living. With more and more organizations adopting hybrid or work-from-home models permanently, residences increasingly require room to accommodate work-stations as well, leading to an increase in luxury living.
- Another contributing element is that luxury homes real estate has the benefit of being a performing asset, which means that they serve a practical purpose while increasing in value. As a result, consumers regard them as the ideal investment that ensures multiplied profits.
- People are investing in luxury home real estate due to the thriving startup culture. Monetization of employee stock ownership plans (ESOPs) is at an all-time high in the startup environment. Employees are directing the monetized earnings to purchase residences to make better use of the cash with significant tax arbitrage.
- Folks are becoming more centered on emotional ties and savoring the understanding of doing their part for the environment. They ensure sustainability via fuel efficiency, water management, and air quality. Sustainability also includes dwellings validated with the top standard of eco-friendly accreditations and are thus updated to luxury homes.
- Other important factors have led to the rise of the Indian real estate business, particularly the luxury real estate industry. Lower interest rates on house loans, decreased stamp duty, and registration fees are some of the causes that have resulted in more purchasers selecting luxury real estate. Furthermore, rising family income is a motivator for luxury real estate investment.
Assetmonk is a smart real estate investing platform that assists you in comprehending and investing in commercial real estate. Via fractional ownership and crowdsourcing, Assetmonk provides superior A-Grade investment possibilities to its investors.
Luxury Real Estate Market FAQ’S
Q1. Is real estate boom in India?
The Indian real estate sector is estimated to be worth $1 trillion by 2030, up from $200 billion in 2021, and to deliver 13% of the country’s GDP by 2025. Retail, hotel, and commercial real estate are also growing exponentially, supplying much-needed infrastructure for India’s expanding requirements.
Q2. Which is the costliest area in India?
According to property expert Anarock, Tardeo in South Mumbai is India’s most expensive residential neighborhood, charging a stunning Rs 56,000 per sq ft average pricing for residences accessible in the primary real estate market.
Related Articles
5 Reasons To Invest In Office Spaces As Real Estate Investments In 2022
There are many ways present in real estate investments. Out of them office space investment is one of the best as it generates passive income every month. Here we are explaining the reasons to invest in office space in the year 2022.
Should Indians Invest In REITs With A Long Term Or Short Term Plan?
The dilemma is whether you should invest in REITs for capital appreciation or regular income. In India, the options are restricted – we know that worldwide, REITs meet both goals. This blog clearly explains whether Indians need to invest in REITs or not.
Exploring REITs? Here Are The 3 REITs Listed In India & How To Invest
Most would not have gone for REITs investing a decade or so. But, REITs have grown in appeal among institutional and ordinary investors, especially with the positive prospects surrounding future office space expansion.
Real Estate Crowdfunding: What is it And How It Works?
Real estate crowdfunding is often used to increase and diversify one’s financial holdings while maintaining an overall balanced portfolio of financial investments, including stocks, bonds, and other equity holdings, rather than as a major means of generating wealth.
Dividend Income or Passive Income From Real Estate – What’s Worth It?
This article mainly explains about the dividend and passive income that is generated from real estate investments. Read more to know about which type of income is best from investing in real estate properties.
Real Estate Investing – How Much Will The Sector Grow Till 2030?
There is no doubt that the real estate sector is growing like anything in India. After Covid 19 situation the industry is experiencing an increase in demand for many commercial and residential buildings. This blog gives us a clear idea of what real estate industry growth is going to be till 2030.
How To Calculate Yield For All Types Of Real Estate Investments In India
Rental yield may be measured in two ways: gross rental return and net rental return. The gross rental yield is the yearly rental revenue derived from the property valuation, excluding expenditures for property upkeep and taxes. It’s just the amount of money you make in rent each year.
Is Office Space Still A Worthy Real Estate Investment In The Work From Home World?
The market appears to be improving, with lease activity picking up in the top seven cities in 2021. Many offices already have opened, and many more are expected to start soon. As a result, this is an excellent moment to invest in commercial real estate.
What Drives The Price Of A Commercial Asset in Real Estate Investment?
A main real estate market driver is a primary force that positively impacts the market. If a market driver is available, there is a good chance that favorable market or industry trends will emerge. Values may rise, and demand may increase.
FEMA Regulations For NRI Real Estate Investments in 2022
This blog gives us a brief idea about the FEMA regulations that are required for NRI real estate investments in 2022.
What Is The Minimum Amount For Real Estate Investment Online In India
Nowadays small investors are coming forward to make profits with a minimum amount of investment in Indian real estate online. This blog gives them a clear idea of the various methods present in real estate investments.
How To Create A Tax-Smart Portfolio With NRI Real Estate Investments
These are the numerous investment opportunities available to NRIs in India. This article helps the NRIs to understand the different methods where they can be able to create tax-smart portfolio with their investments.
India Among The Top Flexible and Cost Efficient Office Locations in the World: Report
The rise of India as a startup powerhouse has also boosted the demand for flexible spaces. They’ve reimagined their products and repositioned themselves to be more relevant in today’s changing environment.
What Makes Real Estate Investment In India The Most Profitable Investments For NRIs?
There are different types of real estate investments present in India which can make NRI investments profitable within a short span of time. This blog gives you clear info on how the investments are being Profitable for NRIs.
JLL reports India real estate garnered $943 million in investments worth in Q1 2022
JLL India has reported that the Indian real estate sector has attracted investments of worth $943 million in Q1 2022 which is 41 percent more compared to the previous quarter.
10 Real Estate Investing Terms To Understand Before Talking To An Agent
Real estate investing may be expensive. However, if you do it correctly, you might earn a sizeable chunk of passive income from rental as the property appreciates. That is why it is critical to comprehend the main terminology of real estate investment.
RBI Rules & Permissions For NRI Investments In India Real Estate
The RBI provides guidelines from time to time outlining the legislation and granting broad authority to NRIs to acquire certain immovable assets in India without needing additional approval from the RBI.
Navigating Marketing Volatility In Real Estate Investment Via Fractional Ownership
Financial markets enjoyed a wild journey in 2022, with sharp ups and downs in stock and cryptocurrency valuations. While real estate with fractional ownership has always been a solid basis in every good portfolio
The Right Way To Measure The Performance Of A Real Estate Investment
This article gives an overview of real estate performance measurement. Property valuation is more difficult than other types of asset appraisal because it lacks specific published values.
Over 2.5 Fold Jump in Office Leasing For Delhi-NCR During The First Quarter: Report
With this report we can clearly observe a 2.5 fold jump in leasing office spaces in Delhi NCR region with in the first Quarter of 2022.
