Demand for luxury homes on the rise

The residential real estate is witnessing a new trend, with a gradual increase in demand for luxury homes across India where buyers are predominantly non resident Indians (NRIs) and high net worth individuals (HNIs). The homes are priced anywhere between Rs 1 crore to Rs 20 crore.

These buyers are also benefiting from a sharp depreciation in rupee and real estate players are increasing cashing in on it, according to real estate consultancy firm Jones Lang LaSalle India (JLL) in its “Real Estate Monitor” for October 2012.  The report pegged the number of HNIs at 1.53 lakh.

These luxury homes have been launched across New Delhi (NCR), Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata during 2008-2012 encompassing 182 apartments for a value estimated at about $30 billion, the report said.

While New Delhi leads the market share with 44 per cent, Bangalore was placed third with a share of 11 per cent.  The residential market otherwise is going through a phase of slow demand, the report added. In the office real estate segment, demand remained stable in most cities. In Bangalore, demand-supply equilibrium was maintained in October. Rents also were stable across every submarket. Rents and capital values continued to remain stable across every submarket.

Another key segment is student housing, JLL India said in its Global Student Housing Report. JLL India Chairman and Country Head Anuj Puri said: “Student housing is one of the most vibrant India real estate markets in the foreseeable future. The corporate higher education industry is expected to build close to 10 million square feet of educational institution space over the next few years. The demand for student housing can well be imagined."

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