{"id":2176,"date":"2023-12-14T17:43:17","date_gmt":"2023-12-14T12:13:17","guid":{"rendered":"https:\/\/www.maiaestates.in\/in-the-news\/?post_type=project&p=2176"},"modified":"2024-03-01T10:55:14","modified_gmt":"2024-03-01T05:25:14","slug":"why-luxury-real-estate-is-overtaking-affordable-segment-know-what-experts-say","status":"publish","type":"project","link":"https:\/\/www.maiaestates.in\/in-the-news\/project\/why-luxury-real-estate-is-overtaking-affordable-segment-know-what-experts-say\/","title":{"rendered":"News 18: Why luxury real estate is overtaking affordable segment? Know what experts say"},"content":{"rendered":"

Although the real estate sector has been witnessing significant demand for the past few quarters, the activity is not the same across the segments. During the July-September 2023 quarter, while the\u00a0luxury segment<\/a>\u00a0jumped 39 per cent in terms of housing sales, the affordable segment saw a 2.6 per cent decline, according to a recent\u00a0Knight Frank report<\/a>.<\/p>\n

This is the first time that sales in the high-end segment have overtaken sales in the affordable segment. Here\u2019s why this is happening:<\/p>\n

Manoj Gaur, president of CREDAI-NCR and CMD of Gaurs Group, said, \u201cEven though the affordable segment took a slight beating, the premium and luxury segments continue to perform well, notably due to the country\u2019s economic growth, the need for a large home and the aspirations to lead a better lifestyle. As far as price trajectory in the next 3-4 years is concerned, we expect it to go up by 50-60 per cent.\u201d<\/p>\n

Mayank Ruia, founder and CEO of Bengaluru-based MAIA Estates<\/strong><\/a>, enlists a number of reasons why the luxury real estate sector is booming in India:<\/p>\n

Rising Affluence:<\/h2>\n

India\u2019s growing economy has led to an increase in the number of HNIs (high networth individuals) and NRIs (non-resident Indians) investing in luxury properties. This affluent class is looking for residences that offer comfort, amenities, security, privacy and other features that can only be found in high-end real estate.<\/p>\n

Global Exposure:<\/h2>\n

The increasing global exposure has made Indians more attuned to global luxury standards. Many are looking for properties that match global benchmarks, complete with world-class amenities and unique architectural designs.<\/p>\n

Investment Perspective:<\/h2>\n

High-end real estate often offers stable and higher returns on investment. It\u2019s seen as a tangible asset that appreciates over time and offers more rental income, compared to affordable housing.<\/p>\n

Focused Developments:<\/h2>\n

Recognising the potential, many developers are focusing on creating niche luxury projects with exclusive features, further fuelling the segment\u2019s growth.<\/p>\n

On the affordable housing segment, Ruia said that while it remains crucial for a vast section of the population, it has not seen the same growth trajectory due to:<\/p>\n

Land Prices:<\/h2>\n

Rising land costs in major cities make it challenging for developers to offer affordable housing in prime locations.<\/p>\n

Financing Issues:<\/h2>\n

Securing funding for affordable housing projects can sometimes be more challenging compared to luxury real estate projects<\/strong><\/a>.
\nOver the past decade, and no different than now, Bangalore has consistently been at the forefront of delivering higher-than-average growth and high-quality residential assets. This is largely attributed to the significant boost the city has received from the startup ecosystem in the IT and services sector.<\/p>\n

\u201cIn the aftermath of the pandemic and as we witness a gradual return to office spaces, there has been a notable absorption of surplus housing inventory from previous years. This surge in demand for new properties has led to a healthy and consistent increase in prices across various parts of the city, as well as within specific product segments and micro-markets,\u201d Ruia said.<\/p>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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