High net worth individuals of India moving into luxury apartments as high-end properties booming

By Dr Suvrokamal Dutta

With the wide array of properties coming up in different parts of India, one can't help but feel that a large segment of the population probably plan to living in apartments or residential areas that boast the snazziest facilities.

The sheer magnitude and size of the projects that are being developed will make you wonder about the demand in the high-end luxury segment. The million-dollar question is: Why are individuals luring towards these properties that come attached with such a hefty price tag? Even more importantly, why are real-estate companies continuing to build these high-end properties?

For example, it has come into the notice of The India Street that Unitech Grande is being developed in Noida over 347 acres of sprawling land. According to sources, the 2,200 sq ft-plus apartments have been priced at Rs 7,750 per sq ft with the first installment comprising 10 per cent of the cost.

Generally speaking, the price of these apartments begins from around Rs 1.8 crore (Rs 18 million) and there is an every possibility that it can increase further in the coming years. It is worthwhile pointing that the project involves 10 global architectural and design consultants. Furthermore, it contains 90 towers, of which eight will be signature towers and four gateways, having 36-45 floors each.

“With a increase in incomes and property prices, a large number of real-estate companies are giving, besides their other projects, high-end properties for consumers,” pointed out Raghuvar Dayal, senior business journalist based at Noida.

Apart from Unitech Grande, Omaxe has a project along identical lines but on a somewhat lower scale in Faridabad. Called The Forest, this one has apartments ranging from Rs 4,000-6,500 sq ft and attracts a price tag of Rs 2.25-4.5 crore (Rs 22.5-45 million).

In my opinion, there is a continuing burst of luxurious villas and penthouses in the Indian real-estate market because prices are skyrocketing and therefore the middle segment is losing its lustre in the process. I don’t believe it will be the case for too long, as the market will finally see some sort of stability. I had a talk with some of the experts and most of them were of the opinion that the market for high-end properties is no doubt booming, but as a result the mid-rung is still not being ignored.

The pivotal factor here is that with increasing disposable incomes, the definition of 'mid-rung' too is quickly changing with almost everyone spending more to settle into more comfortable, more luxurious apartments. The question now arises: Is the high-end market getting crowded? The answer is no because plenty of high net worth individuals who reside in old kothis and bungalows are now moving into luxury apartments simply because it is very tough to manage palatial houses.

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