More and more Indians are getting attracted to luxury property in Mumbai. Housing is no exception. That’s why real estate developers in Mumbai are launching projects with world-class designs and amenities in prime locations.
Even though, the real estate sector has been facing a slump along with the overall economy due to low demand and high prices and higher interest rates. But it seems the luxury segment has been able to avoid the downturn. Key luxury housing markets have witnessed a steady appreciation in prices over the last few quarters.
With the depreciation in the value of the rupee, moderation of prices after demonetization and the enhanced transparency in Indian real estate transactions on the back of policy reforms, non-resident Indians (NRIs) have started finding the Indian real estate market attractive again. With high disposable incomes and a preference to head back home after retirement, NRIs will dominate Indian luxury real estate sales. With that new projects in Mumbai‘s luxury market are seeing the annual price rise of 30-40%. In Mumbai’s prime locations with well- connected infrastructure and well-developed peripheries, the rise has been 56%.
Location is the Key Factor
The market dynamics for the residential luxury segment are different from other asset classes, primarily due to the target end-user segment and their expectations from such assets. Owning a prime piece of residential flats for sale in Mumbai is a matter of pride for the owners. Prime locations that are profuse of social amenities and exude a vibe that is synonymous with their lifestyle have always been popular amongst discerning buyers.
Thus Locations with property in Chembur, flats in Mulund, flats in Ghatkopar have always been the prime factor that defines the luxury quotient attached to a property. As a result, many locations near the center of power bore a significant influence on residential property prices in the vicinity.
Luxury is the Key Factor
Traditionally luxury meant prime location and good social infrastructure and amenities. Now, it is not limited to swimming pool and club in the society. Builders, in order to stand out in the market, are bringing in new technologies, impressive designs and latest architecture. They are also collaborating with internationally acclaimed architects and designers as seen in 2 bhk flats in Vikhroli’s Intelligential by Haware properties.
Technological innovations play a huge role in our lives and homeownership is no different. Homes with sophisticated automation systems and advanced features, vis-à-vis reduction in energy consumption, waste management, and safety and security, will attract the new-age buyers. With artificial intelligence and machine learning improving cost efficiencies in different sectors, real estate will not be left behind either and a high-tech home of the future will be a new benchmark of luxury, apart from its location. Homes crafted by international architects, interior designers and joint ventures with leading developers from other countries, will remain popular with buyers.
ROI is a key factor
Experts are optimistic about the demand for luxury housing in view of the country’s high rate of economic growth. With the Indian economy slated to grow it is reasonable to assume decent wealth creation over the next decade. People spend more on luxury products if they are sure of their future earning potential. It is believed luxury housing growth in India will outpace GDP growth by two times
High economic growth leads to a rise in demand for luxury real estate. Flats for sale in Mumbai’s luxury real estate is thus at an advantageous position. Investors too are willing to pump in funds for luxurious living options.
Affordable luxury is emerging as a key theme, owing to the changing market dynamics following the policy reforms. The growing popularity of affordable luxury in the middle-income groups such as 1 bhk in Vikhroli and 1 bhk in Mulund, will keep the suburban markets with good connectivity and social infrastructure on the radar of developers, as homes with luxury amenities will help people meet their lifestyle aspirations.