Major Realtors Feel at Home with Ultra-Luxe Properties 2023
As the demand for exclusive locations among high net worth individuals (HNIs) and non-resident Indians (NRIs) increases, major firms in the real estate industry, like DLF, Lodha Group, Sunteck Realty, and Godrej, are placing large bets on their luxury residential real estate portfolios.
Although the luxury real estate market is still a minor portion of the company’s overall portfolio, the sales margins in this range are substantial due to the price point it sells at.
DLF reported earlier this year that its DLF Camelia project, with prices ranging from Rs 27 crore to Rs 50 crore, had sold 70 apartments and achieved an exceptional sale. Other high-end residential developments, such as Sunteck’s Signia Pearl ($22–$25 crore) and Lodha’s Malabar ($25–$25 crore), are also in high demand and always have waiting lists.
Luxury is immaterial. Today’s dialogues go beyond the means of the budget and the price is inelastic. Over the past five years, the demand for the premium and super-luxury sectors has nearly doubled, according to Aakash Ohri, joint managing director and chief business officer of DLF. He said that businesspeople, foreigners, new-age entrepreneurs, HNIs, and NRIs are frequently the purchasers of ultra-luxury residences.
Similar comments were expressed by Lodha Group, which said that the ultra luxury market accounts for 12–15% of their revenues.
“At the moment, our luxury portfolio accounts for 12–15% of our $14,500 crore in sales overall. We will keep investing in these projects since the housing market has been booming over the past two years, according to Prashant Bindal, chief sales officer of the Lodha Group.
The super-luxury market, according to him, is controlled by entrepreneurs and features statement products. Several professionals have, nevertheless, expressed interest in owning a luxury home during the past 18 months.
In the upcoming years, the firm intends to expand its portfolio while continuing to engage in the premium market. According to Bindal, “We will keep investing to support the overall growth.”
Over the next five years, the number of ultra-high-net-worth people (UHNWI) in India with net worth over $30 million would increase by 58.4%. According to ‘The Wealth Report 2023’ published by real estate firm Knight Frank, the number from the most recent count in 2022 is anticipated to increase to 19,119 people in the following five years in 2027. The number of billionaires is anticipated to rise from the current 161 in 2022 to 195 in 2027.
According to India Sotheby’s International Realty, there is a wait list to purchase ultra-luxury residential homes. “More purchasers are expressing interest in acquiring luxury properties as wealth in India rises.
Demand is stable and supply is constrained. Even when the cost is exorbitant, iconic assets are purchased. According to India Sotheby’s International Realty managing director Amit Goyal.
In order to increase their real estate holdings, he claimed that numerous HNIs are also considering purchasing opulent farms in Goa and Alibaug (in Maharashtra). Goyal stated that in order to meet the latent demand, the business is considering to open an office in Goa.
According to DLF’s Ohri, there has been a noticeable rise in NRI interest in taking advantage of possibilities to invest in opulent houses in India, along with pent-up demand. The number of NRIs looking for properties in India has dramatically increased during the last three years. They are drawn to invest in luxury homes by the benefits of property indexation, faster digital processes, favourable currency fluctuations, and open legislation.
The supply of luxury real estate has, however, decreased 20% from 31,700 in 2021 to 25,360 in 2022, according to a report by Anarock, which has led to an increase in costs.
The majority of these premium home developments have starting pricing of 18,000 per square foot. The apartments are typically larger than 5,000 square feet and include distinctive architectural features, individualised facilities including a round-the-clock concierge service, exclusivity in design, and high-end furnishings.
Super luxury residences are only available by invitation, according to almost all of the real estate professionals FE talked with, as this market demands a unique and carefully tailored experience for the purchasers.
“Our primary goal is to create great residential experiences that satisfy the needs of our upscale clients. Plans that have been carefully chosen and created are included. According to Kamal Khetan, chairman and managing director of Sunteck Realty Ltd., the demography of purchasers for its projects was a mix of professionals aiming for the highest level of distinction and comfort and older people eager to indulge in the height of luxury living.
In the ever-fluctuating real estate market, the focus on ultra-luxe properties has never been sharper. As the world rebounds from economic challenges and uncertainties, the affluent are seeking not just homes, but extraordinary lifestyle statements.
Major realtors, understanding this trend, have carved a specialized niche in marketing and selling high-end properties. These are not just residences but extensions of opulence, culture, and high living.
To understand the realm in which major realtors are operating, it’s important to define what constitutes an ultra-luxe property. Such properties generally have unique architectural designs, extensive land areas, high-grade interior finishes, and one-of-a-kind amenities such as private cinemas, wine cellars, and home automation systems.
They may also include panoramic views, historical significance, or direct access to unique natural features like beaches, lakes, or mountain ranges.
Realtors in the ultra-luxe sector often use highly targeted advertising strategies, focusing on select demographics, industries, and interest groups. For instance, using social media algorithms, realtors can target high-net-worth individuals interested in art, fashion, and luxury cars.
To market an ultra-luxury property, realtors often organize exclusive invite-only events. These gatherings can range from elegant dinners to art showings, with the property itself as the backdrop, giving potential buyers a taste of the lifestyle that comes with the property.
Given that potential buyers may be global citizens, major realtors use Virtual Reality (VR) and 3D showcases to conduct virtual tours of the property, allowing interested parties to experience the property without having to travel physically.
High-end real estate requires a different kind of negotiation acumen. Major realtors often employ teams of financial analysts, legal consultants, and interior design specialists to make the transaction as smooth as possible. Custom contracts, complex financing options, and even architectural consultations are part of the package.
Ultra-luxe property transactions often require a level of discretion and privacy that goes beyond the norm. Many high-profile buyers prefer anonymity in their dealings, making it necessary for realtors to offer off-market listings, discreet viewings, and confidential transactions.
Major realtors often tap into global networks to find the right buyer. These networks include not just other real estate professionals but also personal contacts in industries ranging from technology and finance to entertainment and politics.
The relationship between the realtor and the client often continues well after the sale is finalized. Major realtors often offer a suite of after-sale services, such as home maintenance, interior design consultation, and even lifestyle management services, to keep their high-net-worth clients engaged and satisfied.
The ultra-luxe real estate market is a highly specialized segment that requires a unique blend of expertise, finesse, and network reach. It is no longer just about selling a property but about selling a complete lifestyle package.
Major realtors, recognizing the unique needs and desires of the ultra-affluent, have made themselves comfortably at home in this market, ensuring that they can match the most exquisite properties with the world’s most discerning buyers.
