Why have luxury homes accorded a notable uptick in sales velocity post covid?

 

What Happened?

In my understanding, the Covid pandemic quandary has a deep impact on the choices of the homebuyers. The desire to own a better home has risen notches high as home buyers seek more spacious apartments with well embedded amenities and optimal utilitarian value. The demand for spacious homes that can cater to multiple needs in terms of privacy, comfort, hybrid lifestyle & functionality has soared high.

Why is it happening?

As per Niranjan Hiranandani Further, lets understand the multiple factors at play that propels luxury home sales. The rising affluent homebuyers’ segment, financially stable millennials, dual income partners, availability of disposable income from robust capital market, booming startup investment, better hiring’s, homebuying tax benefits and rising aspiration to live in luxury home that can raise living standards.

The supply side factors like improved liquidity, impetus to last mile connecting infrastructure, new business avenues like JV, DM, JDA models, alternative funding avenues like IPO, PE, AIFs etc post market consolidation, higher land acquisition, array of product variance, and increasing market share of organized realty players. Additionally, stable property prices, tamed inflation and interest rate stability is favoring homebuying demand with conducive market dynamics.

Who all are buying?

Property market registers great buying response from flourishing startup investors, established unicorn promoters, HNIs and UHNIs, C-suite professionals, NRIs and established entrepreneurs.

Future projection in CY 2024?

Since the market is very conducive for real estate sector’s buoyancy, we are bullish on the sustainability of demand in mid and luxury housing segment. The lending institutions like banks, NBFCs and FIIs are also optimistic about increasing share of home loan credits due to stabilizing interest rates & negligible NPA ratio of less than 2%, which makes it more viable and credit safe for lenders, says Niranjan Hiranandani News. As a result, we expect luxury housing to grow at a CAGR of 10% for CY 24.

What is a luxury home?

A spacious home with well-efficient layout

A home that caters to multi-utilitarian purpose

A home that has well-crafted design and scenic view

A home that is well-embedded with superior furnishings & fixtures

A home with enduring quality

A home in a well-connected location with holistic amenities

A home with like-minded community living

A home with optimal comfort & convenience

A home that bespoke luxurious lifestyle

A home that fetches better appreciation & ROI


Comments

Post a Comment

Popular posts from this blog

Digitalization Has Increased Customer Focus in Indian Real Estate - Niranjan Hiranandani 

Image
A paradigm change from a product-centric to a customer-centric approach was brought about by digitization in order to accommodate changing consumer demands. Modern avant-garde homebuyers have a biased allegiance and affinity for companies that balance ecology, economy, and emotion in a way that is known as “conscious consumerism.” Since contemporary technology can already mimic human emotions, the economy is largely based on analyzing user behavior and emotional states. The economy is rapidly changing into a “emotion economy” thanks to the era of digitization. As the new currency for growth, the industry is increasingly leveraging the power of emotions to foster brand loyalty and create unforgettable customer experiences. Mapping emotional journeys leads to the deciphering of consumer purchasing habits, since real estate purchases are extremely sentiment-concentrated. Real estate companies now have access to crucial consumer data thanks to digitization, which supports client segmentati
Read more

The Invigorating Indian Real Estate Market in 2023 - Niranjan Hiranandani

Image
  Due to the eagerness of discriminating homebuyers to invest in or buy a home, the Indian real estate market is booming. For reasons of career mobility, first-time homebuyers who previously tended to rent are now more likely to buy. Owners now understand the importance of having a house that offers stability, privacy, and convenience for their families, especially in light of the unprecedented pandemic. The current economic climate is fueled by a number of variables that drive demand for homes, including the following: 1. A rise in disposable income 2. An optimistic capital market 3. New hires 4. Long-term tax benefit on capital gains 5. Invest in larger residences for a higher standard of living 6. The availability of empty-nested houses 7. Upbeat about upcoming profits 8. Vigorous consumption 9. A stable interest rate for house loans 10. The availability of mortgages 11. Increased number of first-time homebuyers 12. Fresh supply of homes 13. Demand in Tier, Peripheral, and Metro are
Read more

Changing finance environment for Indian real estate - Niranjan Hiranandani

Image
  Developers have the opportunity to utilize competitive advantages, such as access to substantial funding, to uphold robust financial positions, manage working capital, handle cash flow effectively, and refinance debt. In recent years, the financing landscape of the Indian real estate sector has undergone significant changes due to the introduction of various alternative funding options. Market consolidation, triggered by the COVID crisis, has profoundly impacted the Indian real estate industry. This circumstance compelled companies to engage in debt de-leveraging initiatives to sustain a healthy balance sheet. Consequently, real estate players have been compelled to reconsider their business models in sustainable and innovative ways. Unforeseen events like the COVID pandemic, geopolitical tensions, and wars have led to increases in raw material and crude prices, disruptions in supply chains, elevated interest rates, and soaring inflation rates, says Niranjan Hiranandani . As a resul
Read more