A significant increase has been seen in the number of buyers of homes worth more than one crore. During the first half of 2022, the number of homes costing more than Rs one crore has increased. Some of these reasons have been discussed in this article, but there are a number of others. The topic has been covered in a few reports as well.
Homes worth Rs one crore and above have been the most popular in 2022. According to Knight Frank’s report – Indian Real Estate, Residential and Office Market-January – June 2022, the trend caught on in the first six months of this year. The report states, ‘Consistent with the upward trend seen in the past three periods, the share of sales in the Rs 10 mn (Rs one crore) and above ticket size grew to 25 per cent in H1 2022 against the 20 per cent a year ago.’
It was also noted in the report that this trend can be attributed to homeowners’ need to upgrade to larger spaces with better amenities, as well as to the fact that pandemic-induced income disruptions did not affect higher income groups as much as they did lower income groups.
Additionally, in H1 2021, 39 per cent of home sales in the range of Rs 50 to one crore were recorded, whereas in H1 2022 they accounted for 34 per cent.
The Rs one crore club is hitting the sweet spot in terms of amenities. Vinod Mishra, an asset advisor says, “A home worth Rs one crore in Mumbai will be way different than a home of the same price in Chennai. So safe to say that Rs one crore will buy you different perks and amenities based on your city. But let’s consider the top eight metros of the country and we see that this amount gets you a gym, play area for children, pool, and spa at the very least. The area of the house will also be anywhere between 680 sq ft and 800 sq ft.”
Houses in a lower price bracket require you to make compromises on amenities or carpeting.
Even though the pandemic had many negative effects on everyone, it did have a positive outcome in the form of increased savings. People were mostly indoors and focused only on necessities, which resulted in a drastic increase in monthly savings.
A report by SBI Life Financial Immunity Survey 2.0, in collaboration with Nielsen IQ (India Pvt. Ltd.), released in January this year, states that 75 per cent of the 5,000 participants have increased their savings and investments since January of 2021.
Shishir Baijal, chairman and managing director, Knight Frank India says, “People did not go out during the pandemic. Even after the restrictions were lifted in August 2020, purchasing was limited to essentials only. As interest rates kept dropping in 2020 and 2021, many used this increased savings and liquidity to pay for the EMI instead. This meant that those who were already planning to buy homes were able to stretch their budget, which has led to the emergence of the Rs one crore club. People who had a budget of say Rs 80-90 lakh could now dream a little more and stretch their budget. We have thus seen a 25 per cent increase in H1 2022 as compared to the same period last year.”
In this category, the majority of purchases have been made by end-users and not investors. S Sivagurunathan, the president, of CREDAI Chennai, says, “People do not mind exceeding their budgets because they want to live in these homes themselves, and thus are keen on bigger homes and more amenities because they are looking for comfort and luxury.”
Let me conclude the article on a positive note. I hope you have acquired a better understanding of the trends of buying a home over 1 crore in India after reading this. Sign up for our newsletter if you’re interested in learning more about topics like this.
In case of any query, you can contact us at firstname.lastname@example.org. Roodland India also provides you with a dedicated group to address your queries regarding houses, loans, land property, and the like.