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Why Luxury Housing investment has become the current favorite amongst HNIs and NRIs

NRI Herald Australia, 04 September 2022

The luxury housing business has grown stronger as demand among High Networth Individuals (HNIs) & Non-Resident Indians (NRIs) for residences that adhere to international standards has increased.


The core of premium residential has developed and increased at a rapid pace. Luxury housing is a booming industry because homes in this class provide luxurious amenities, amenities, nature, high-tech security systems, and a sense of tranquility and solitude. These factors contribute to the boost in the desire for premium residences, and this trend is projected to persist in the future years.


The epidemic has revealed new insights into house ownership. It has altered people's perceptions of home. Today's rich Indian buyers are eager to spend on luxury residences, which are frequently situated in rising and desirable areas. The epidemic prompted pent-up interest in this property class. Nevertheless, once COVID faded and normalcy resumed, the luxury house market saw a surge in demand. Stamp duty exemptions from the authorities fueled demand for properties in this category even more.


According to Anarock research, the premium category accounted for 12% of total sales in the first quarter of 2022, up from 7% in the same period last year. It was caused by an upsurge in demand from HNIs and NRIs looking to invest in luxury properties.


Customers' Attention is Growing

High-Net-Worth Individuals (HNIs) and Ultra-High-Net-Worth Individuals ( The luxury housing sector in India is outperforming market expectations and gaining the interest of a number of high-net-worth individuals (HNIs) and ultra-rich HNIs such as business tycoons, CEOs, and startup founders. With neoclassical buildings, attractive interiors, newer styles, hi-tech facilities, and natural surroundings, posh housing communities fully meet their needs.


Non-Resident Indians (NRIs) are motivated to make investments in their country and constitute a sizable customer base in the premium domestic segment. The main reasons for rising interest from this consumer market include socio-economic infrastructure building, innovation in home automation, and currency devaluation. The rupee's devaluation benefits NRIs, increasing their interest in the Indian real estate market. NRI investments were near USD 13.1 billion in 2021 and are therefore expected to increase by 12% in 2022.


Developments and Possibilities for Market Participants

In the wake of the epidemic, potential homeowners have begun to consider ecological and well-being concerns. In the midst of the epidemic, wealthy purchasers have recognized the value of large properties. They want homes with separate workstations, study areas, leisure zones, private gardens, decks, gyms, and other modern infrastructure for stress-free living.


Maharashtra leads the Indian luxury property industry, mirroring the sales fervor seen in international gateway towns such as Dubai, London, and New York. In 2021, Mumbai alone hampered sales of luxury home complexes worth INR 20,255 crore, with 1,214 units sold, as opposed to 598 units worth INR 9,872 in 2018.

The luxury apartment business has grown stronger as demand for residences that meet international criteria has increased. With pandemic fears waning, sales are increasing. This category now has a larger market share since it perfectly addresses customers' wants while delivering exceptional value and reliability.


To summarize

Given the favorable outlook, India's luxury property industry has experienced unparalleled growth, owing to good consumer sentiment. The digital boom has permeated the industry, making a big contribution to the growing high-end market. Modernize, tech-savvy urbanites, and families with multiple generations live together as the target market of luxury real estate builders.


The rising proclivity of HNIs and NRIs to invest in luxury properties has assisted the market's rise tremendously. The segment's sales numbers are expected to outperform all prior records in the future.



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