NEW DELHI: Yet another piece of the real estate market appears to be getting back in shape. After realtors focused on the affordable housing space, where demand remained reasonable when market prices crashed two years ago, they are now launching luxury homes as the segment is witnessing early signals of an upswing in demand.
Sensing this turnaround, a host of property developers including DLF, Unitech, Emaar MGF and Ansal API are gearing up to launch plush housing projects, where a single unit costs upwards of 2 crore, over the next six months.
“Now that the job market is looking up, consumers are once again regaining the confidence to put money in swank projects,” said Shravan Gupta, executive vice chairman and managing director at Emaar MGF.
The Delhi-based property developer plans to launch around 2,000 upscale units over the next six months across cities such as Gurgaon, Hyderabad, Punjab, Bangalore and Kerala.
Unitech, the country’s second-largest builder, who had focused on affordable housing space, too plans to launch a few luxury projects to target high-end home buyers. Unitech spokeswoman said it has a few projects in the works in the luxury housing segment located in the national capital region.
Luxury homes are targeted towards high net worth individuals and the price range of such apartments varies from city to city. While in metros such as Mumbai and Delhi, the cost of such high-end houses can begin from 2 crore, in tier-II cities they can be around 1 crore and above. Builders in this category focus on fully-embellished apartments , which can be further customised to the individual buyer’s preferences.
Pranav Ansal-led Ansal API plans to launch a mix of high-end villas and apartments in Lucknow and NCR by the end of 2010. While they are coming up with a golf course property in the price range of 3-7 crore in Lucknow, in Gurgaon they are launching villas in Esencia township in the bracket of 6-7 crore.
Anil Kumar, deputy MD & CEO at Ansal API said the rising aspiration levels of consumers in India is the major factor propelling growth in the luxury realty segment. “More than expensive and stylish interiors and fittings, today consumers are looking for more environmental-friendly features which are becoming luxuries for a better quality life and they are ready to pay for them,” he said.
India’s biggest realtor DLF recently sold super luxury flats in the price range worth 4 crore each in central Delhi. Besides , it also launched at least three highend projects in Gurgaon including Park Place and Golf Links, which too were reportedly sold off within days of launch.
Anurag Mathur, MD at real estate services firm Cushman & Wakefield, said: “Prices of luxury homes in general has touched the peak level of 2007, while in some places such as Gurgaon and Mumbai, they have exceeded the 2007-prices .”
As per estimates of Cushman & Wakefield, over 8,000 residential units in the luxury segment are expected to be ready by 2013. The total supply expected this year will be 85,000 units of which about 14% will be luxury projects.