Luxury Real Estate Market Destined For a Boom? Learn the Key Reasons
The luxury real estate market has already witnessed a massive rise, and for the first time, the country is witnessing the power of the affluent class. For a growing economy, it’s essential because it creates many secondary and tertiary jobs that help to increase the upward climb within the economy.
When it comes to the real estate market of India then, it currently stands at USD 38.02 billion. However, it’s expected to reach an approximating state of USD 101.92 billion in the next 5 years. Hence, it shows unprecedented growth at an annual rate of 21.81%.
In India, typically, the rising affluent class is that segment of the society that makes around an annual income of 20 lakhs INR to 50 lakhs INR. This segment is purchasing the real estate assets that are suitable for them based on the location. As the growth story of India progresses this market will expand further and will create an opportunity for many investors and buyers.
In this blog, we will cover some of the key cities like Mumbai, Delhi, Bangalore, Hyderabad, and Kolkata and find what are the specific reasons for each of these cities in the growth of the luxury real estate market.
Growth Factors That Increase the Value of Luxury Real Estate Market
The real estate market of India is on the rise, and that’s a known fact but how the luxury real estate market is growing is drawing eyeballs from all the other areas of business. With the modern features of One Andro App and other third-party loan agencies, people now have better access to credits, and that will help the real estate market to boom.
- Growth of the Affluence Class
The rise of the affluence class is linked with the growth of the country’s GDP. It means many businesses in the country and the top executives are getting fairly paid, and that brings individuals who are investing their money in real estate properties. As the market is booming the HNIs who are outside the country are also splurging money in the market to get a taste of rising real estate.
- Change in the Habits of Lifestyle
Another important metric that one can witness is the shift that is happening in the lifestyle of the people and that is getting a luxury living for the family or keeping a vacation home. All these demands are creating a need in the market, and developers are supplying that with quality units of apartments and properties.
- FDI and FII in the Real Estate Markets
The investment comes from foreign direct investment and the institutional buyers who are holding properties for business gains and are then renting out to the tenants who want to live a luxury living. All of these are some of the positive aspects that are effective for the growth in the luxury market of real estate.
- The Role of Urbanization and Infrastructure Boom
Urbanization has also played a key role in the recent rise of the luxury real estate market. Many places that are quite distant from the main city now have proper communication and roads, which will allow the person to come and connect with the main city at ease. Here, a person can now connect through the One Andro DSA app and get an agent who can sanction a home loan for the purchase.
Growth Cities For the Luxury Real Estate Market
However, all the cities are not growing at the same pace, and some of them are way ahead of the league in determining the future of luxury real estate.
- Mumbai: The Billionaire’s City
Mumbai is the home of the highest number of billionaires, which makes the city one of the richest in the world. The luxury real estate market of Mumbai has increased by 16% on a year-on-year basis.
- Delhi NCR: A New Affluent Class
Delhi NCR is one of the growth markets for the real estate market, and it’s the area where more than 30,000 residential units are launched.
- Bangalore: The City of Wealth Creators
Bangalore is now a major city for the real estate market, and it’s the city that is showing strong growth figures in the current year. Developers are more keen to open the residential place in the city.
Thus, robust economic growth along with employment is one of the major factors that can bring more growth in the segment and make India a prominent name in the global real estate market.
