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India real estate to remain gung ho on luxury premium housing in 2025 as affordable takes a backseat

Gaurs Group is a well-established real estate developer in India, with a portfolio of over 100 projects across the country.

Gaurs Group’s Luxury Projects in Delhi NCR

Gaurs Group, a prominent real estate developer in India, is set to launch two luxury developments in the Delhi NCR region next year. The company has been actively expanding its portfolio of luxury projects, with a focus on ultra-luxury residential developments, townships, and luxury projects.

Ultra-Luxury Residential Developments

Gaurs Group is planning to launch a series of ultra-luxury residential developments in the Delhi NCR region. These developments will offer residents a luxurious lifestyle, with amenities such as:

  • High-end finishes and materials
  • Spacious living areas and bedrooms
  • State-of-the-art security systems
  • Luxurious amenities such as swimming pools, gyms, and spas
  • Proximity to top-rated schools and hospitals

    • These developments will cater to the growing demand for luxury residential properties in the Delhi NCR region.

    Luxury Real Estate Market Sees Significant Surge in Supply and Demand.

    This is a significant increase from the 33,400 units available in the first three quarters of 2023.

    The Rise of Luxury Real Estate

    The luxury real estate market has experienced a remarkable surge in recent years, with the supply of luxury homes increasing significantly. This trend is expected to continue, driven by factors such as growing demand for premium housing, increasing disposable income, and the rise of luxury lifestyle brands.

    Key Drivers of the Luxury Real Estate Market

  • Growing demand for premium housing
  • Increasing disposable income
  • Rise of luxury lifestyle brands
  • Government policies supporting luxury real estate
  • Technological advancements in construction and design

    • The Impact of Luxury Real Estate on the Affordable Segment

    The rise of luxury real estate has led to a decline in the supply of affordable housing. As developers focus on luxury projects, affordable housing projects are being delayed or cancelled. This has resulted in a shortage of affordable housing options, making it challenging for low-income households to find suitable housing.

    Consequences of the Shift

  • Reduced supply of affordable housing
  • Increased prices of affordable housing
  • Displacement of low-income households
  • Negative impact on social and economic development

    • The Future of Luxury Real Estate

    The luxury real estate market is expected to continue growing, driven by factors such as increasing demand for premium housing and the rise of luxury lifestyle brands.

    Supply and demand collide in the luxury market, creating a new era of abundance.

    The luxury segment has seen a significant increase in supply, driven by strong demand and the emergence of new players in the market.

    The Luxury Segment: A New Era of Abundance

    The luxury segment has experienced a significant surge in supply in recent years, driven by strong demand and the emergence of new players in the market.

    The Rise of Luxury Housing in India

    The COVID-19 pandemic has had a profound impact on the Indian real estate market, with the demand for luxury housing experiencing a significant surge. Several factors have contributed to this trend, including the growing interest from non-resident Indians (NRIs) and high-net-worth individuals (HNWIs) in investing in Indian real estate.

    The Rise of Luxury Homes in India

    The COVID-19 pandemic has brought about a significant shift in the Indian real estate market, with wealthy buyers seeking larger, amenity-rich homes that can accommodate their remote work needs. This trend is particularly evident in the National Capital Region (NCR), where luxury homes are in high demand.

    Key Features of Luxury Homes

  • Spacious living areas
  • Well-equipped offices or home offices
  • High-speed internet connectivity
  • State-of-the-art security systems
  • Luxurious amenities such as swimming pools, gyms, and spas

    • The Benefits of Luxury Homes

    Luxury homes offer a range of benefits, including:

  • Increased productivity and focus
  • Improved work-life balance
  • Enhanced security and safety
  • Increased property value

    • The Impact of the Dollar’s Strength on NRI Interest

    The strengthening of the dollar has made it more expensive for NRIs (Non-Resident Indians) to purchase properties in India.

    Millennials and Gen Z drive ₹1 crore and above real estate market surge.

    According to a recent survey, 75% of the buyers in the ₹1 crore and above segment are millennials and Gen Z buyers.

    The Rise of Premium Real Estate

    The ₹1 crore and above segment has seen a significant surge in demand this year, with many buyers opting for premium properties. This trend is driven by the growing preference for luxury living among millennials and Gen Z buyers.

    Key Factors Contributing to the Trend

    Several factors have contributed to the rise of premium real estate in the ₹1 crore and above segment.

    The project is part of DLF’s larger strategy to revamp its portfolio and focus on high-end residential properties.

    The DLF Privana South Project: A Luxury Residential Venture

    Overview of the Project

    The DLF Privana South project is a high-end luxury residential venture located in Gurugram, a city in the National Capital Region of India. The project was launched by DLF Ltd, a well-established real estate developer, with the aim of catering to the growing demand for luxury residential properties in the region.

    Key Features of the Project

  • Luxury Amenities: The project offers a range of luxury amenities, including a private club, a swimming pool, a gym, and a spa.

    The Prestige Ocean Towers Project

    The Prestige Ocean Towers project is a luxury residential complex located in Marine Lines, Mumbai. The project was launched in 2019 and has been gaining popularity among high-net-worth individuals and luxury enthusiasts.

    Key Features

  • Luxury Apartments: The project offers 1, 2, and 3-bedroom apartments with prices ranging from ₹ 5 crore to ₹ 20 crore. Panoramic Views: The apartments are designed to provide stunning views of the Arabian Sea and the city skyline. Advanced Amenities: The project features a range of amenities, including a swimming pool, gym, and spa.

    Luxury Segment Sees Surge in Sales Amid Rising Demand for High-End Properties and Smart Homes.

    This growth can be attributed to several factors, including the increasing demand for high-end properties, the rise of luxury brands, and the growing popularity of smart homes.

    The Rise of Luxury Segment

    The luxury segment, which comprises apartments priced above ₹ 3 crore, has witnessed a significant surge in sales during the first half of 2024. This growth can be attributed to several factors, including:

  • Increasing demand for high-end properties
  • Rise of luxury brands
  • Growing popularity of smart homes

    • The luxury segment has seen a notable increase in sales, with the share of luxury in total quarterly sales rising from 7% in H12023 to 12%.

    The Role of Smart Homes

    The growing popularity of smart homes has played a significant role in the surge in luxury sales.

    Ultra-luxury real estate is booming, with high-end properties and amenities driving growth and demand.

    The company is also planning to enter the ultra-luxury commercial segment.

    The Rise of Ultra-Luxury Real Estate

    The ultra-luxury real estate market has experienced significant growth in recent years, driven by increasing demand for high-end properties and amenities.

    The 14-month overhang refers to the period during which developers are unable to sell their completed units due to lack of buyers, resulting in unsold inventory. The reduction in this period from 17 months in 2023 to 14 months by 9M 2024-end indicates a decline in the duration of unsold inventory, suggesting a potential improvement in the market’s ability to absorb new supply. This is evident from the reduction in the overhang period.

    High inventory overhang hinders growth in Hyderabad, while Bengaluru sees improvement.

    “This is a significant improvement from the previous year when the unsold stock was at 12 months.”

    The Inventory Overhang in Hyderabad

    Hyderabad has the highest inventory overhang of 19 months among the top seven cities. This means that the city has a significant amount of unsold stock, which is a common issue in the real estate market. The high inventory overhang in Hyderabad can be attributed to several factors, including:

  • The city’s rapid growth and expansion, which has led to an increase in new supply and a decrease in demand. The presence of several large-scale infrastructure projects, such as the Hyderabad International Airport and the Outer Ring Road, which have attracted new businesses and residents to the city. The city’s relatively low cost of living and doing business, making it an attractive destination for investors and entrepreneurs. Despite the challenges posed by the high inventory overhang, Hyderabad’s real estate market is expected to continue growing in the coming years. The city’s strong economy, diverse industry base, and favorable business environment make it an attractive destination for investors and businesses. ## The Inventory Overhang in Bengaluru*

    • The Inventory Overhang in Bengaluru

    Bengaluru has the lowest inventory overhang of just eight months among the top seven cities. This is a significant improvement from the previous year, when the unsold stock was at 12 months. The city’s real estate market has been experiencing a slowdown in recent years, which has led to a decrease in demand and an increase in inventory. The city’s rapid growth and expansion have led to an increase in new supply, which has put pressure on the market. The presence of several large-scale infrastructure projects, such as the Bengaluru International Airport and the Namma Metro, has attracted new businesses and residents to the city.

    Rising prices in the Indian real estate market are driven by government policies and limited supply.

    The Indian Real Estate Market: A Story of Rising Prices

    The Indian real estate market has experienced a remarkable transformation over the past few years. With the government’s efforts to boost economic growth and infrastructure development, the market has seen a significant surge in demand and prices. However, this growth has also led to concerns about affordability and accessibility for the average consumer.

    Key Statistics

  • The average annual price increase in the top eight markets is 11% year-on-year. Delhi NCR saw the highest rise at 32%, followed by Bengaluru at 24%. The 15th consecutive quarter of price increases marks a significant trend in the market. ## Factors Contributing to Rising Prices*

    • Factors Contributing to Rising Prices

    Several factors have contributed to the rising prices in the Indian real estate market. Some of the key factors include:

  • Government Policies: The government’s efforts to boost economic growth and infrastructure development have led to increased demand for housing. This, in turn, has driven up prices. * Limited Supply: The supply of housing in India is limited, particularly in major cities like Delhi NCR and Bengaluru.

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