Luxury real estate is consistently ranked among the most attractive investment avenues globally. Besides offering attractive appreciation and hefty rentals, luxury properties symbolise the posh lifestyle whose snob value is beyond monetary significance. An increasing number of High-net-worth individuals (HNIs) and expatriates are making a beeline for the sector which is apparent in the growth projections the segment has for the coming years. Currently valued at $38.02 bn, the luxury properties in India are expected to reach $101.92 in valuation by the end of 2029, thereby growing at a phenomenal 21.81% CAGR between 2024-29. Studies also predict that wealthy Indians are quite upbeat about the prospects of luxury real estate with 71% expressing their desire to invest in posh properties in the next 1-2 years.
Posh Properties: Making a Lifestyle Statement
Comprising almost 18% of the total 365,000 inventories sold in the top seven Indian cities in 2022, luxury properties are now attracting considerable interest from investors from all spheres of life. Upper-middle-class buyers are quickly rising the wealth creation ladder and with more disposable income in hand, the long-term growth prospects of the segment are quite bright. What is also playing a crucial role in augmenting the appeal of luxury real estate is the rebranding of posh property as a lifestyle statement, something beyond only the brick-and-mortar story most investors used to associate with in the past.
Technology and Sustainability for Enriched Lifestyle
The rising influence of technological advancements and the need to make a shift towards sustainable living is also attracting investors to become a part of the success story that luxury properties are scripting today. While the integration of technology is aimed at offering enriching customer experiences, keeping sustainability at the heart of its design and development practices is helping the segment to create a win-win situation for all participating stakeholders. Both these aspects are coming together and fueling the next wave of growth for luxury real estate. Both developers and investors are today well aligned with the trend and it comes as no surprise that 61% of the total new projects in the Delhi-NCR region today belong to the upscale status.
Blending Modernity with Conscious Living
The contribution of stunning architecture, exquisite interiors, and environmentally friendly materials is fast becoming a mainstay of luxury properties. Besides, developers are paying specific attention to construction technology, earthquake-resistant provisions, and energy efficiency to offer holistic benefits to all stakeholders across the value chain. The seamless integration of indoor and outdoor spaces is also making a strong comeback for making luxurious living equally connected, joyful, and ecstatic. All these perspectives are helping luxury properties project a positive image and emerge as a lifestyle statement for investors.
Conclusion
Investment in luxury properties goes far beyond the traditional concept of putting money into real estate. The concept has acquired a multi-dimensional perspective with a focus on lifestyle emerging as a key theme among investors. While investment in posh localities has always been a significant industry trend, the extra efforts that builders put in to develop these properties smartly and sustainably are furthering their appeal. In sum, investment in luxury real estate is becoming the talk of the town and by investing in properties having great snob value; you can make an impeccable lifestyle statement besides realizing attractive returns on your investment.
