While affordable and mid-segment housing dominate the property market, luxury real estate projects are slowly making a return with developers competing for a niche segment of wealthy homebuyers. The slowdown in the realty market had its worst impact on the high-end projects leading developers across India, operating in this space, to shift their focus from ultra-luxury to affordable and mid-income projects. However, it seems that the change is round the corner. Mint, a business daily, has reported that developers, particularly from southern India, are strategically launching projects in the premium category with select designs and sizes to capitalize on this opportunity.
A prolonged real estate slowdown had its worst impact on high-end projects. This led developers across India to shift their focus from ultra-luxury to affordable and mid-income projects.
Projects by Unity Group (top) and Adarsh Group
Bengaluru-baserd Adarsh Group recently launched its luxury villa project, Adarsh Sanctuary, in Bengaluru. The 172 villas, encompassing 3 and 4 BHK units, across 21 acres are priced at around Rs 2.4-3.5 crore. Similarly Prestige Group is set to develop a luxury residential project in Pali Hill, Bandra, one of the most expensive locations outside south and central Mumbai. Yet another Bengaluru-based developer Puravankara Ltd recently started its World Home Collection of luxury apartments. The first three projects would be launched in Bengaluru, followed by Chembur, suburban Mumbai and Chennai’s Guindy. Sobha Ltd, known for its upscale residences, plans to enter Delhi and Hyderabad in the coming quarters with a premium project in each of these markets. Piramal Realty too is looking for good land parcels in western suburbs and south Mumbai.
According to a report by Liases Foras Real Estate Rating and Research Pvt Ltd, sales in the Rs 1-2 crore segment saw 8% growth in the September quarter with Mumbai Metropolitan Region accounting for the maximum sales share of 32% in the segment. Developers are confident of the demand and remark that both ticket size and price of the product are critical.