Written by Sachin Gawri:
Gurgaon, one of the fastest-growing residential and commercial hubs in the NCR region, has emerged as an attractive destination for investors and buyers over the years. Owing to its strategic location, rapid urban development, and world-class infrastructure, the city is home to high-net-worth individuals (HNWIs) who seek premium living spaces with top-notch amenities. Offering lifestyle benefits to homebuyers, these properties come with exclusive amenities that not only enhance the living experience but also lead to higher rental yields.
A survey shows that 71 per cent of wealthy Indians desire to invest in luxury real estate for the next 12-24 months. Moreover, integrating smart technology and sustainable design elements in the properties increases property prices by up to 20 per cent.
However, the selection process for luxury properties focuses on various factors. While location remains a priority, architectural uniqueness and premium amenities continue to be significant spotlights, with developments offering bespoke designs and state-of-the-art facilities experiencing higher demand. Compliance with regulatory requirements is also pivotal. Affluent investors and buyers should conduct thorough due diligence to effectively navigate India’s intricate real estate laws and regulations, ensuring their investments fully comply with current legal standards. This includes a deep understanding of the Real Estate Regulation and Development Act (RERA), which has introduced significant reforms to the sector since its enactment.
Besides, investing in Gurgaon’s luxury real estate requires a comprehensive understanding of market dynamics and opportunities. Economic policies play an eminent role in shaping the market. For instance, the recent cap on capital gains tax spurred a rush of transactions as investors sought to leverage tax benefits before the end of the fiscal year. This adjustment is part of broader economic shifts that have seen luxury real estate prices in top markets like Mumbai and Delhi increase by over 30% in the last five years. Hence, the volatility of the luxury market demands strategic investment planning, emphasizing both the economic landscape and individual property valuations.
The luxury real estate sector caters to the growing demographic of HNIs and UHNIs, driven by urbanization and increasing disposable incomes. As this buyer segment notably focuses on sustainable living and is influenced by technological advancements, luxury homes emerge as lifestyle statements. Hence, luxury real estate investments offer various methods like traditional bank loans, commercial mortgages, real estate investment trusts (REITs), and crowdfunding platforms. Each method offers different terms, rates, and eligibility requirements, catering to the buyers’ investment objectives, financial state, and risk preferences.
Thus, as the appeal of the luxury real estate segment grows, these strategies further enhance the functionality of the properties. Aligning with global sustainability goals and attracting a new generation of eco-conscious investors, the sector offers promising opportunities for everyone interested in investing in the real estate sector. Thoroughly understanding the market dynamics, investors and buyers can navigate this profitable landscape.
(The author is founder and CEO, RISE Infraventures)
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