What Are Ultra-Luxury And Mid-Luxury Projects?
With real estate being reinvented in India, luxury segment of this sector has gained traction among buyers. This taste for luxury has been largely driven by the rising economy, higher disposable income and changing lifestyle. With this rising interest and a different set of buyers opting for luxury, it can easily be defined into two segments — ultra-luxury and mid-luxury housing. While mid-luxury is more achievable, the ultra-luxury is still an aspiration for many keen on luxury living.
Cities including Gurgaon, Mumbai and Bengaluru are already witnessing a ten-fold appreciation over the launch prices in the luxury housing projects. Amenities ranging from a golf course, ambience, private elevators and even, branded or theme-based homes, the Indian luxury segment is on an upsurge. Both, the ultra-luxury and mid-luxury segments have a different target audience. While the ultra-luxury housing segment is targeted at the high net-worth individuals (HNIs) and the ultra-high-net-worth individuals (UHNIs).The mid-luxury segment, on the other hand, is a recent addition in the luxury segment. It targets the small businessmen and the salaried income group where the affordability can take a space with adding all the contemporary luxurious amenities.
Let's look at the key differences between ultra-luxury and mid-luxury housing:
The lower cost, when compared with the ultra-luxury segment is what attracts buyers to the mid-luxury segment. The potential buyers prefer this housing segment because people can buy premium amenities at a competitive price. Whereas the price of luxury housing has only seen a minimal appreciation as only one per cent of the population that can afford it and not much of resale of properties have been witnessed. Only a limited number of people in the elite group are interested in ultra-luxury projects. Some of these projects are so exclusive that sales happen only by invitation. To secure ample of funds for the construction, developers generally depend on pre-sales absorption in ultra-luxury housing segment. As the prices of the mid-luxury segment are relatively lower, the deal can be done through all-white-money and the booking amount won't pinch harder to the customers.
There is not much of a competition for the locations between these two segments. Largely the townships in the peripheries of metro and bigger cities experience the mid-luxury housing projects. As these projects are built keeping in mind the mid-income group, here the buyers or consumers can enjoy benefits of open green spaces, strategic location, great connectivity and social infrastructure in the neighbourhood. Generally, buyers who are residing in 2 or 3BHK apartments tend to upgrade to a larger apartment, which in a way comes under the mid-luxury segment. On the other hand, the location of ultra-luxury projects largely in the posh localities of any given city.
Ultra-luxury projects are associated with international names and brands, which also promotes 'branded homes'. These houses have expensive interior décor, advance security systems, big space for parking and designer fittings and flooring. These houses are planned in a way to offer an experience of a lifetime to the set of consumers who are seeking for an upgraded lifestyle.