Luxury Housing Investment: Top features NRIs and HNIs look at before buying

The luxury housing segment in India is making a strong comeback after the onslaught of the pandemic. According to research, residential sales in the Rs 1.5-crore plus segment registered a jump of 270% year-on-year (Y-o-Y) during April-June 2022. With buyers at the top of the pyramid, it is safe to say that the dependence on loans is much lower for the luxury segment.

With the world moving back to ‘the old normal’, strong growth is expected in the luxury segment, particularly from the high net-worth individuals (HNIs) and Non-Resident Indian (NRIs) segments. A study by India Sotheby’s International Realty reported that around 75% of HNI buyers plan to buy property in the country in the next two years in metro cities and holiday destinations.

Be it the pent-up demand after the pandemic or the realization of the importance of a luxurious home felt during the pandemic, an increasing number of HNIs and NRIs are opting for luxury housing options. With features like private gardens, swimming pools, opulent interiors, wide open spaces, lush green locality and serene backgrounds, luxury housing has become one of the most popular segments in the Indian realty industry.

Here are the new investment trends emerging in the luxury housing segment among HNIs and NRIs:

Wellness facilities

As the luxury housing segment attracts a specific class of buyers, there is an increased preference for sustainable and conscious brands. As a result, this has pushed several developers to inculcate sustainability into their offerings. Apart from expecting top-of-the-line wellness facilities in the projects, HNI and NRI buyers are looking for features like natural lighting, ventilation, green spaces and open landscapes. The quality of wellness facilities and the bent towards sustainability drive demand in the market.

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No compromise

The COVID-19 impact on the sector also includes a wide range of design aspects that the HNI and NRI consumers expect. Buyers are demanding features like semi-private outdoor spaces along with a structure that is elastic, ecologically balanced and self-sufficient. The luxury housing buyer wishes no compromise on essential elements from the developer.

Maintainable and robust infrastructure

HNIs and NRIs investing in luxury housing units are looking for robust and maintainable infrastructure. With built-in facilities, perfect pantry space and a preference for fireplace space, the luxury housing units are expected to have infrastructure that is sturdy, durable and easy to maintain. These features make a luxury housing unit stand apart from a relatively affordable project.

Home offices

Even as the workforce has started returning to the office, most organizations are switching to a hybrid mode. As a result, it has become essential for developers to include a home office as part of the design. A home office is an integral part of a luxury housing unit, even if the buyers want to invest money to create rental income. It is a must-have for good customer response for holiday homes and luxury housing projects.

Serviced apartments

The concept of services apartments is popular among luxury housing buyers, especially in the holiday homes segment. With built-in facilities like housekeeping and other premium services, it is a good option for luxury home buyers looking at it as a second home. With better quality of life and increased convenience, serviced apartments are preferred by many luxury home buyers.

Senior living facilities

Several projects have been designed keeping senior citizens in mind. Starting from the design to the amenities, these projects provide senior citizens with a better quality of life. As a result, buyers from this segment are attracted to these luxury options as they scout for their new homes.

Vibrant community

HNI and NRI buyers are increasingly conscious of their status in society and want to be seen with like-minded people. As a result, developers ensure that the project offers enough opportunities to create a vibrant community to achieve an indulgent lifestyle. Features like grand clubs, fine dining restaurants, top-of-the-line sporting facilities and wellness facilities are some of the features that are a regular feature of the expectations from the buyer.

Both buyers and developers realize that the COVID-19 pandemic has changed buyer behavior and expectations. It is expected to continue as the world returns to its traditional self. As a result, the industry recognizes the changing patterns and delivers projects per the current preferences.

(By Aditya Kushwaha, CEO & Director, Axis Ecorp)