Why Does the Demand for Luxury Houses Continue to Rise?

Kishan Thakkar K

Introduction

The share of luxury housing stands at 12 percent in seven major cities in the first three quarters of 2021. Luxury homes have experienced high demand in the last three months due to buyers exploring apartments with high-end amenities.

This calendar year, India has experienced a rapid increase in unicorn start-ups (start-ups valued at over $1 billion) on the back of a growing entrepreneurial ecosystem. The number of unicorns is also almost above sixty till present. 

There was little change in the premium or luxury housing market. The Covid lockdowns could not have more than a 5% effect on luxury housing segment business loss.

Here are some of the reasons why the demand for luxury housing will continue to increase in the upcoming years

Aspirations of the young generation

Millennials plan everything in their lives- whether it is about a dream car or a house. Luxury housing inspires today’s youth since they desire a house that has all of the conveniences they could want. The demand from this segment has been crucial to premium luxury housing’s rise, and the demand will continue to grow.

Changing ways of life

The most important aspect of luxury residences is the standard of living. With consumer expectations rising, developers are offering a greater variety of world-class amenities and international standards in construction.

Privacy & security

With premium housing, you get better facilities and amenities. This segment of housing is not just more secure, but also healthier due to its high level of sanitation and hygiene control. Consequently, this can become a key demand driver.

Reduction in interest rates and stamp duty

There are several leading lending institutions that offer attractive home loan options with rates ranging from 6.75% to 7.5% at the moment. These low interest rates allow buyers to make considerable savings while acquiring a valuable asset for end-use or investment. 

The growing interest in second homes

There is a growing demand for second homes located outside of cities. Holistic living has taken on a whole new meaning and paved the way for the luxurious house as a second home.

Returns on investment are lucrative

The increase in prices of real estate is inevitable, and one of the most influential factors is the demand-supply gap. Luxury and premium real estate also come with a return on investment. There has been a steady increase in demand while the supply has been inadequate.

Conclusion

Well, I hope that you have gained some insight for the reason behind the rising demand of luxury housing. Nevertheless, if you want to know more then feel free to contact us on info@roodland.com. Also, visit our LinkedIn profile to stay updated about the world of real estate.

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