Changing Trends of Luxury Housing – 2021

Nikita Taneja N

Introduction

2016 was a watershed year for real estate. With demonetization and RERA (Real Estate Regulatory Authority) coming into effect, it greatly inflected this cash oriented sector by manifolds. The home loan rates were slashed and properties became affordable. The year gave a whole new perspective to real estate. Consumers got a better choice and safety for their investments which were a distant reality prior to 2016. Consumers were immensely empowered. 

After demonetization, there was a plethora of legal tender lying with people waiting to be consumed. What best could have been except to invest in real estate. That’s what they did. Large demesnes were bought and sold. 2017 saw a reduction in GST (Goods and Services Tax) for under-construction homes from 12% to 8% giving real estate a further boost. 

Changing Dynamics

The period from 2016 to December 2020 saw a widespread increase in the real estate sector with ever-changing dynamics. Prior to that, the concept of luxury homes in India was tied with the pin code value of the area. Buyers were ready to pay exorbitant prices to buy a property in these high-class exclusive areas. However, due to the limits of the area in cities, there was a dearth of such properties to buy. Most of such luxurious properties were those which were available for resale and lacked the amenities like luxury-grade spaciousness, contemporary common amenities, modern security, clubhouses and swimming pools, and smart home features sought by modern customers. The tastes of luxury home buyers had evolved sufficiently and developers were ready to offer new vicinities to their clients.

Eventually, new customers are haunting the new category of ‘luxury homes’. No longer do the denizens want to be disturbed by frequent traffic chaos, pollution, parking havocs, etc. They are willing to endow new deals. Builders are focussing on providing spacious properties with modern facilities to prospective buyers. They focus more on Open spaces, landscaped green zones, seamless security, and the community experience that was deficient in traditional luxurious properties.

These exclusive locales are usually connected and accessible to the city’s business centers via efficient road networks. Most of such townships offer the highest level of convenience to the inmates negating the need to move out of the perimeter. Yoga clubs, gyms, supermarkets, walking trails, swimming pools, multipurpose auditoriums, parking lots, healthcare, departmental stores, entertainment, etc. almost every comfort is available within the bounds. Previously all this was provided by the builders at an extra cost often hidden at the time of purchase. Today, it is all a part of the complete deal.

These ultra-modern flats surrounded by lush greeneries are tastefully made quite in contrast to previous dusty ageing rustic buildings that needed constant renovations. The monopoly of exquisite property holders is ebbing with this nouveau riche breed.

Real estate is no longer a simple transaction but has become a maze of choices and procedures.

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What’s Happening Today?

Tier-II cities like Ahmedabad, Kanpur, Chandigarh, Patna, Dehradun, Pondicherry, Pune, etc, and Tier III cities like Madurai, Baroda, Nashik, and Trichy offer great potential in terms of real estate. There is a plethora of land and skilled labour in these cities making it easier for a new developer to target these markets. With customers looking forward to tapping the untapped locations, the infrastructure development in such areas will definitely reduce the burden on bigger cities. There will be equal distribution of the wealth thereby increasing the status of rural India.

A number of cities have already been upgraded by the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – a scheme that was launched in 2005 which caused huge modernization in the concerned cities.

Not only the housing sector, but several multinational companies are also looking towards these cities for larger gains. With their offices being opened in these cities and officials being appointed, the need for dwellings with all comforts is much in demand. 

Trends in real estate are surely shifting and growing rapidly. Better employment opportunities in return lead to an increased GDP of the country slashing the bank interest rates. Real estate serves as the best mortgage agreement. With the easy availability of loans, the demand for real estate shows an increasing trend which in turn raises the prices of the properties and vice versa.

Real estate is the face of any country’s liquidity. Rudrapur (Sidcul), Uttarakhand is a very good example of this trend. An area that was unnoticed till 2005 saw rapid development after the farmlands were opened for MNCs. The return on investment is much more stable in Tier II and Tier III cities as compared to metros. Global factors hardly ever affect these cities. It attracts foreign investors by providing a growing and sustainable environment.

A letter has been addressed to the PM indicating that real estate dealers should be able to travel all over the country with a single licence. Currently, they can operate only in the areas of their jurisdiction for which they are provided a licence.

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