NRIs reshaping the Indian Luxury Real Estate Market

There is an interesting trend that has been noticed in Indian real estate market. In a market riddled by lack of demand from buyers, developers are seen launching luxury residential projects.

Resultantly, there has been an unexpected emergence of interest in the luxury residential segment which has come from non-resident Indian clienteles and buyers with deep pockets.

A lot of Realtors have joined the trend in Pune and Mumbai as well. Following the implementation of the real estate Act, the market in all parts of the country was stirred up for better or for worse.

While the transparency and authenticity in real estate investments became apparent, the risk of seeing the project ever reach completion with respect to compliance has a lot of residential home investors backing out. To make-up for the miserable loss, developers are looking to make the most of this micro-market.

The demographic for luxury projects is limited. However, this is the segment that has kept non-corporate realtors out of the red in recent times. A remarkable fact about the NRI customer base is that even a risk-prone project does not disappoint them. As long as a luxury project is made debt-free, NRIs do not hesitate from paying extra to purchase the same.

Most of these luxury houses have a specific net worth that runs into hundreds of crores because each home comes with a price-tag of Rs 6-8 crore. In spite of the dearth, real estate big shot have done a booming business in Mumbai and Gurgaon.

This shows that in spite of the storms that were thrown its way, real estate industry is capable of sustaining through micro-marketing. The niche of investors may be thin, but it is not absent. According to real estate analytics, a list of real-estate developers have managed to snag end-user consumers enthusiastic about luxury housing projects.

Mumbai saw Lodha Group and Radius Developers making a profitable business. The Lodha Groups have launched about four new luxurious, high-end projects at Walkeshwar, Lower Parel, and are now concentrating on Pune. Radius Developers has two upcoming projects where each luxury home may get them approximately Rs 13 crore.


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