Luxury housing is growing as one of the most vibrant and dynamic real estate segments in India. At present, India has the fourth-largest population of millionaires with around 2.36 lakh individuals who fall firmly in the high net worth individuals (HNWI) category. Given the overall economic growth in the country and rising income levels, people have more disposable income compared to the older generation.
We have seen a significant increase in the luxury real estate market with the surge most seen in residential homes, which are up by 25%, primarily led by HNWIs, and corporate leasing by 54%.
Bangalore’s new-look homebuyer
The country’s fast-expanding services sector is propelling many middle-income group individuals into the HNWI bracket, and these individuals are willing to spend money on comfort and luxury.
The new-age Indian homebuyer is well traveled, well-heeled, and has a taste for fine living along with the income to support today’s lifestyle.
There is a particular segment in the age group of 32 to 38 years in the metros who are in the mid-level and higher mid-level positions incorporate with a postgraduate degree and are looking for homes which match their aspirations, are eco-friendly and eventually they want to be in a community of like-minded people.
Bangalore has seen the largest transformation in terms of economic upliftment in the past two decades with the average age of the population dropping from 60 years to 30 years and the average earning power of this population is arguably the highest when compared to the more established cities of India.
As a result, Bangalore’s real estate market dynamics are also unique when it comes to financial clout and similar lifestyle preferences. One of the significant factors driving real estate consumption in Bangalore is the consistency of job creation, which surpasses all other Indian cities.
It is a growing city both in terms of geographical expansion and in providing livelihood to educated young Indian, yet it has still not lost its lifestyle attractiveness quotient. Bangalore is a key real estate market across all residential segments including the affordable housing segment.
While we are witnessing a surge in the luxury-living space across markets in India, Bangalore is the most promising market with many reputed developers launching projects with all state-of-the-art amenities. There is also a massive demand for integrated developments that provide facilities such as schools, restaurants, malls, hospitals, libraries, and ample parking space.
Homebuyers today are also very conscious of the environment, and there is increased demand for homes, which are green, energy and water-efficient, thus leading to a completely sustainable habitat.
Some of the key micro markets in Bangalore like Whitefield, Indiranagar, Koramangala, Hebbal, Tumkur Road, Kanakapura Road, and Yelahanka have seen huge demand from HNI homebuyers and we expect the trend to continue in the future as well.
This article is contributed by Uday Bhaskar, Business Head – South, Godrej Properties Limited.
The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor.