The housing sector has been growing at an exponential rate. The sectoral reforms and people-centered policies by the government have resulted in much-needed clarity. The luxury housing market is expected to soar in the years to come. Especially through the housing finance companies facilitating affordable housing portfolios.
According to industry experts, even as the worldwide economy collapsed due to the Covid-19 pandemic, it had unusual effects on the real estate markets, with higher costs and hardly any home loan defaults. They also stated that strategies like backing and steps like RERA have made the market more simplistic, reliable and productive. Furthermore, the buying craze could lessen as markets are at all-opportunity highs. Regardless, the appetite for luxury properties will continue to register a substantial jump.
What Factors Have Resulted In The Growth Of The Real Estate Market In Recent Times?
During the pandemic, the real estate sector underwent a significant shift and quickly transformed into the residential real estate sector. The support from the government with stamp duty cuts, low-interest rates and favourable tax policies acted as facilitators that supported the sector despite constraints. The Central Bank’s decision to not increase the repo rate was made at a perfect time. This resulted in the real estate sector becoming resilient against the pandemic. Recently, the Reserve Bank of India increased the Repo Rate to deal with inflation. However, it had a minimal effect on the plans of wealthy homebuyers in the luxury segment.
The increasing interest of High Networth Individuals and Non-Resident Indians has been the most significant driver in India’s luxury housing market. These prosperous buyers who desire to live among similar-minded wealthy people in posh settings are ready to take risks to invest in what matches their opulent lifestyles. This group of high-impact buyers is well aware of the global standards. They want similar amenities in their residential areas and homes. The posh residencies are full of chic interiors and contemporary designs. They are fitted with all the luxurious comforts that perfectly suit their needs. This is why around 67% of HNIs said they were willing to invest in a residential space in 2022.
Additionally, the pandemic has made the NRIs acknowledge the significance of investing in their homeland. The global credibility of India’s growing economy along with transparency and growth in the real estate market, has been very favourable to the luxury housing sector. The NRIs are broadly investing and choosing luxury housing for good returns or even their retirement settlement plans.