Growth in the future will be driven by the affordable middle segment and the continued demand for high-quality luxury apartments in selected locations. Whether dream destination, wedding, dream car, or dream house: Millennials believe that planning is a step forward in life.
As demand for housing continues to rise, the inventory of luxury properties will increase to accommodate homebuyers. The COVID-19 outbreak has prompted developers to look for innovative solutions to develop holistic and functional housing models that meet the evolving work style of home buyers. This optics has led to a greater demand for residential projects that offer more living space and better amenities. Due to the demand for exclusive services, technology-based residential complexes have also experienced a sharp increase. People postponing purchasing decisions will fuel overall housing demand in the coming years. There will also be an increase in green building practices and environmentally friendly forms of housing. The differences between dollars and INR and the growing interest in HNIs and MRIs will also lead to progress in investment and quality housing. The number of new listings of luxury properties has increased as rapidly as the number of pending sales and closures per month in previous years, and hence demand will remain stable as long as market conditions for sellers remain.
Ankit Aditya Pradhan, CEO, Realty Assistant said luxury apartment buyers now prefer projects from brand developers who are willing to move quickly and have first-hand property quality assessments. He added that real estate will become the preferred asset class in 2021, and that interest in the luxury housing segment is growing not only among Indians but also among NRIs. The demand for luxury apartments remained unaffected by the closures and will continue to rise in the future. New luxury goods are triggering higher housing costs as developers rush to demolish old affordable units and pull up apartment towers. Also, demand for this segment is not affected by any external factors. There are many reasons for the low impact of luxury apartments during COVID closures as such homes have a high level of disinfection and hygiene management and also offer superior protection against theft.
The pandemic impact on the Indian economy has this year made real estate investors skeptical about the future of the housing market, whether or not the housing market is likely to collapse in the coming years. However, a flurry of studies in recent years has shown that new developments in market interest rates, particularly the luxury version, can in some way help ease the pressure on local property prices. An increase in the supply of luxury properties relative to demand may result in units being sold better at or above their list price. Overall, the demand for luxury housing will witness a consistent rise in the future as the sector will experience an increasing demand for sustainable housing, and of course, it is also the safest investment in the present market scenario.