Luxury Property Catches Home buyers Attention: Luxury Living report by Makaan.com
Rise in the disposable income, DINKs families (Double Income No Kids) and boom in service sector are making people rich at early age. The changing demographics of the country coupled with the rising aspirations have propelled growth of luxury housing. Gen Y’s aspiration of comfortable and superior lifestyle equipped with world-class features that elevate resident’s lifestyle and comfort is prompting builders launch Luxury or Super Luxury projects.
What are the various considerations when a luxury home buyer sets out to search for a luxury property? Is there a change in the mindset of the home buyers when it comes to Luxury Housing? Are owners of luxury properties happy with their choice? To understand this and many more questions related to the psyche of a luxury home buyer, Makaan.com, the fastest growing real estate website in India, conducted a research christened “Luxury Living”.
The research shed light on many aspect of Luxury property buying in India, including finding that an overwhelming majority (75%) of the people who own a luxury home consider location as the single most important factor while choosing the property. For prospective buyers too location is the most important factor with 62% respondents choosing the option. Apart from location builders reputation, past price appreciation of the project and social status associated with the project were ranked as the secondary parameters to choose a project.
Amit Arora an owner of DLF Magnolia says that the reason why choose to buy a flat in the project was it’s prime location and the brand name of builder. According to him, when he was looking to buy a luxury property in Gurgaon he looked at Golf Course Road which is witnessing the development of several infrastructural projects including widening of roads and rapid metro connectivity. Within this location he wanted to go with a reputed developer with proven track record of project delivery, so DLF became a natural choice for him.
The research shows that the primary motivation and purpose of buying is to have a property that complements the owner’s lifestyle. Other secondary factors influencing the decision are investment and high rental income, but to a small extent. The upper-middle class is beginning to graduate to luxury living in western-styled homes with ultra-modern facilities. This demand is not only restricted to metros but also Tier II cities like Ludhiana, New Chandigarh, Lucknow etc.
Ishita Dhanuka living in Ashok Towers in Parel, Mumbai states that she doesn’t mind spending extra money to live in a luxury property. She is willing to spend money on comfort and luxury. She also feels living in Ashok Towers elevates her status among her peers and this improves her confidence and approach to life. Luxury buyers consider club facilities as an important consideration for buying a property. Other secondary considerations are connectivity to business hub, integrated school facility, and integrated shopping mall. Interestingly, integrated Golf Course (considered by many as a status symbol) doesn’t seem to be important consideration when investing in a luxury property. Ishita Dhanuka resident of Ashok Towers in Parel, Mumbai says, “In a space crunching city like Mumbai the first thing that attracted me to the project was the club house facilities. I can always visit the swimming pool and gym at my own convenience. After a hectic day I can always hit the gym or to pool at my own sweet time”
The research showcases that most of the buyers (62%) are planning to buy a luxury property within the next 12 months. Another 26% think that they will buy a property within one to three years whereas 12% are willing to push their purchase by more than three years. A. Srilakshmi a resident of Wellington Estates, DLF Phase 5 Gurgaon says, “In the last two years the realty market has seen a downward trend and I feel that this is a perfect opportunity to invest in the market. Till now I was staying on rent in DLF Phase 5 area, but now I am looking to invest in a Luxury property in the same vicinity”.
It has also been noticed that luxury property owners as well as seekers consider Internet and newspaper as top two sources for researching and find information. 92% of property seekers mentioned that Internet is the primary mode of research, followed by newspaper. Sagar Redkar, a resident of Versova, Mumbai who is looking to buy a property says, “My primary source of information is internet and newspaper. I would like to do a proper research of a project and then reach out directly to a buyer to get the best price. Why should I involve a broker and pay him extra commission when I can do the research work myself.”
A majority of the property owners saw an appreciation of more than 20% on their luxury property investment. Around 1/3rd of owners have witnessed an appreciation of more than 30%. However, a few owners saw an appreciation less than 10%. Research also revealed that unlike popular belief luxury project has nearly full occupancy rates. Only a small section mentioned that their projects were partially occupied. Most of our respondents of luxury property owners said that they are happy with their purchase.
Note: The above story is basis an online research conducted by Makaan.com among people who have either purchased or were planning to purchase a luxury property. Our Participants were more than 1000 luxury home owners and seekers from across the country including key cities of Gurgaon, Noida, Kolkata, Pune, Delhi, Mumbai, Thane, Navi Mumbai, Ghaziabad, Patna, Jodhpur, Chandigarh, Ahmedabad, Hyderabad, Bangalore, Kerala,Chennai, Kochi, Coimbatore, Panjim, Aurangabad, Bhopal, Vadodara, Amritsar, Lucknow, Mysore, Surat, Rajkot, Mangalore, Vijayawada, Trivandrum & others.
Our survey also saw participation of investors of luxury property from various parts of the globe including Copenhagen, Abu Dhabi, Kuwait, Milton, Chicago, Dubai, Cambridge UK, Scottsdale, USA, Lancaster, Houston, Riyadh, Bahrain, UAE & others.