Luxury housing demand increases in metro cities
Real estate developers are more interested to launch luxury residential projects than building affordable housing due to the increased cost of construction.
Real estate biggies like Oxame, Tata Housing, Supertech, DLF and Unitech had initially planned to come up with affordable housing to lure home buyers, but are now planning to make some changes in their plans due to low profit margins.
The demand for ultra-luxury and luxury homes is rising in the metro cities. A few luxury residential projects were launched despite the dullness in the real estate sector. According to some developers, home buyers are searching for houses between the price bracket of 25 lakh and 40 lakh.
According to realty experts, the soaring cost of building material will increase the overall cost of production will have a direct impact on the property prices as well. With the increased input cost, the profit margin for affordable housing has declined by 15 percent whereas in the luxury segment, the profit margin increases by 35 – 50 percent.
Most of the developers are opting to develop projects under premium category focusing on the profit margins.
The rising number of high networth individuals (HNIs) and NRIs, influx of global lifestyle trends and rapid pace of urbanisation are some of the main reasons behind the increasing demand for luxury housing.
The value of luxury homes will increase in the future because of the presence of around 1.53 lakh HNIs, those who are new in rich segment and people who obtained wealth and have aggressive lifestyles.
Some of the renowned developers in the real estate who are into luxury residential segment are Sobha, DLF, Lodha, Sunteck, Hiranandani, Kohinoor Developers.
Click here for related forum discussion
Related Real Estate News
Demand for luxury homes is growing
The era of luxury projects in India
Affordable Housing, Bangalore, Bangalore Real Estate, home buyers, luxury housing in Bangalore, Luxury residential projects, Property price in Bangalore, Residential projects in India, ultra luxury homes
