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Realtors bet big on ultra luxury properties
The rising demand for bigger houses from high networth individuals has prompted top property developers to plan a spate of ultra luxury projects in coming months. Marquee names like DLF, K Raheja Corp Homes, Prestige Estates and some of other largest developers in the country have lined up over half a dozen uber luxury projects in Mumbai and NCR, priced between Rs 15 crore and Rs 50 crore.
DLF, for instance, is coming up with a super luxury project in Gurgaon after a gap of eight years. Consultants expect that properties would cost upwards of Rs 40 crore apiece though company executives did not divulge the price points. The project is expected to get launched in Q4 of this financial year. It has also lined up luxury projects in Mumbai and Chennai in coming quarters.
“DLF has always performed well in luxury and customers trust our brand. It is just that pipeline has come up now,” said Aakash Ohri, joint managing director at DLF.
K Raheja Corp Homes, led by billionaire developer Chandru Raheja, is coming up with two ultra luxury residential projects in Juhu area of Mumbai which is a home to many Bollywood actors and industrialists. Each of these projects are in the range of Rs 15 crore to 30 crore apiece.
It recently launched a luxury project in South Mumbai in a land parcel of three acres.
“The demand for premium developments has remained robust, attracting high net worth individuals and discerning buyers, who have experienced the global best standards of living, and want the same in their home country” said Ramesh Ranganathan, chief executive, K Raheja Corp Homes.
Bengaluru based Prestige Estates is looking to double luxury launches in FY24.
It will be soon launching a ultra luxury development on Marine Lines, called Prestige Ocean Towers where prices are about Rs 20 crore apiece. It also planning to launch one more ultra luxury in Worli.
It recently launched a a luxury sea-facing development called Prestige Ocean Pearl in In Kozhikode in Kerala. It has also recently launched two luxury projects in Hyderabad and coming up with one more, said Irfan Razack , chairman and managing director of the company.
“Alongside with the increased spending capacity of the families, we are seeing a desire of larger homes and shift towards three and four bed apartments from one and two bed apartments,” Razack said. The company is expecting a topline of Rs 2,000 crore from luxury projects this year.
Mumbai-based Sunteck Realty is coming up with an uber-luxury project in South Mumbai withprice points exceeding Rs 50 crore, said its chairman and managing director Kamal Khetan.
“It’s worth noting that we have witnessed a slight uptick in launches within the luxury segment, particularly in cities like Mumbai and Bangalore, over the last few quarters compared to a year ago,” said Ashwin Chadha, CEO, India Sotheby’s International Realty. However, the supply challenges continue to persist, especially in the Delhi luxury market, Chadha said
He said prices in the luxury segment have shown some upward movement compared to the same period last year. “Developers seem to be introducing properties at slightly higher prices than before, which could be attributed to various factors such as increased construction costs, inflation, and also possibly due to the sustained demand in this segment and limited supply., ” he said
In Mumbai, residential properties, priced above Rs 10 crore in the primary and resale market rose 49 per cent in value terms to Rs 11,400 crore during the January-June period of 2023 against Rs 7,660 crore in the year-ago period, according to India Sotheby’s International Realty and CRE Matrix report.
Similarly, between January 2023 and March 2023, Delhi NCR has witnessed an increase of 216 per cent in the sale of luxury houses compared to the first quarter of the calender year 2022.
Source: Financial Express