Brand Trump To Redefine Luxury As India Builds Housing For All
India's Prime Minister Narendra Modi has a dream. That is to provide Housing for All by 2022. To achieve this ambitious target, his government is focusing towards making housing more affordable. Developers are doing their share of the job. Figures from the second quarter report of PropTiger DataLabs show this segment constituted 61 per cent of the total new launches in the financial year 2016-17. The report attributed this to “the sops offered by the government for developing affordable housing”.
In short, India is preparing itself to house 40 per cent of the country's population that will move to urban areas by 2025. But what about the high-net-worth individuals (HNIs)?
According to a report by Business Standard, "Growing opportunities in e-commerce, a rising stock market, and an optimistic economic outlook have helped the number of ultra-high-net-worth households in India grow 17 per cent in FY15." This segment would want to enjoy world-class luxury when they invest in their new homes. What about them? Has the PM ignored the luxury segment while he working too hard on affordability? He might have, but he has no reason to worry.
This luxury housing segment is set to get redefined with Republican candidate and real estate mogul Donald Trump's defeating his Democrat rival Hillary Clinton in the US Presidential elections on November 9.
Real estate developers like Lodha Group and Panchshil Towers are already making the most of his brand name. It must be worth noting that the owner of the Trump Organization charged hefty sums from the two developers to let them market their products in Mumbai and Pune, respectively, under his name. There is a lot in a name, as far as Trump and his real estate brand goes. He makes millions every year by letting real estate companies across the world use his signature. But the two developers are only too happy they signed a deal with the 69-year-old media personality and now the President of the United States of America.
“We got a premium of more than 25 per cent for our apartments compared to the other projects nearby due to this association and it was a fruitful deal. Even the flat owners who leased their houses are getting more than Rs 5 lakh per month that is almost double than those in the neighbourhoods,” Panchshil Realty Director Sagar Chordia told media after signing the deal.
Trump signed a deal with the Panchshil Group in 2012. It's Trump Towers in Pune has two blocks of 23 storeys each housing 46 single floor residences. The rich and famous of the city have lined up to have their share of Trump luxury, reports indicate.
“The aim of Lodha Group's collaboration with the Trump Organization for the Trump Tower Mumbai is to raise the bar in every sense for luxury and services and set a new benchmark for luxury living in India creating a tower that redefines the Mumbai skyline,” a Lodha spokesperson had said about the tie up.
“It has been my desire for many years to be involved in a great project in Mumbai, and it is my honor to bring the Trump lifestyles to the citizens of this truly global metropolis,” Trump has said after signing the deal. “Priced from $1.6 million, the three- and four-bedroom apartments in this property advertise indoor Jacuzzis, Poggenpohl kitchen cabinets and automatic toilets,” said a report by The Wall Street Journal.
While the new US president's stance on the immigration issue has been a matter of concern for India, the country's real estate sector will certainly benefit from his arrival at the White House. His brand name would add more sheen to India's uber-luxury housing segment.