Luxury market demand grows in Bangalore, Chennai
Bangalore/Chennai- Luxury residential segment has been observing significant rise in demand in the top seven cities of India.
Over 200 luxury residential projects were launched between 2008 and September 2012. Among all the cities, Bangalore alone holds 21 percent of share during the first three quarters of this year while Chennai holds 20 percent.
Fast growing urbanisation, mounting investments of Non resident Indians (NRIs) and high net worth individuals (HNIs), rising number of globe-trotting Indians, influx of global lifestyle trends and rapid growth of service industries are driving the demand for luxury housing in India.
Owing to the global financial crisis, the value of new luxury residential projects which had reached US $9.9 billion in 2010, dropped to US $4.7 billion year-to-date. It was also affected by the developers as they were more focused on completing existing projects than launching new ones.
A survey by Jones Lang LaSalle reveals that building a luxury project incurs 30-40 percent more cost compared to a mid-end or high-end project. But, the sale price of a luxury project yields 60-80 percent higher premiums. However, the price depends on the location and differs from city to city, as luxury residential projects are often associated with higher risks and longer gestation period.
A newly launched ultra-luxury smart home project by Akshaya which seems to be the tallest tower in the state on Kazhipattur road, OMR, Chennai, has pulled encouraging responses from HNIs. Real Value Promoters is going to launch an ultra-luxury housing project, which is being developed by an international architect while ultra luxury products are being imported from the European countries.
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