Dynamics of luxury housing in India

In India's largest cities - namely Mumbai, Delhi NCR and Bangalore - luxury and ultra-luxury residential projects have witnessed ten-fold appreciation over their launch prices over the last decade, implying more than 100% annual returns on investment, says Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India.

Most of these projects saw encouraging pre-sale activity and were sold out completely very quickly. In fact, demand for luxury and ultra-luxury housing in cities like Gurgaon has always outpaced supply, which has encouraged developers to increasingly shift their focus on this segment, he says.

Why Luxury Works For Developers

Because of the tendency of ultra-luxury projects to garner extremely good pre-sale volumes, their developers are generally able to secure significant fund flows to capitalize the completion of their projects. Luxury and ultra-luxury projects yield much higher returns to developers than projects geared towards the affordable and mid-income segments.

While it is equally true that the input costs for luxury housing are also much higher, the developer stands to benefit from the increased visibility of his brand among highly affluent, top-end clients. This means that the developer can uniquely position himself on the basis of quality luxury projects. This increased visibility and the credibility attached to a reputation for superior construction is automatically attributed to all projects by such a developer. In other words, even mid-income housing projects that he launches benefit, and will invariably see higher sales than comparable projects by developers who have not ventured into luxury housing.


That said, there is considerable responsibility on a developer of luxury housing. He must mandatorily be able to introduce features which compare with or surpass those in other luxury projects on the market. Buyers for such projects have very high expectations and want their homes to offer as well as reflect a high lifestyle quotient. There is very little tolerance for flaws in design, construction and amenities. Thus, a botched luxury project can have significant negative repercussions on the developer's credibility and future success.

Luxury Housing As Investment

The ultra-luxury housing segment is comparatively recession proof. As most of the buyers in this category are the C Suite of the corporate world, successful entrepreneurs and business tycoons, their financial appetite is not limited to or governed by the economic considerations that give the middle-class sleepless nights. A significant percentage of buyers for such projects is able to self-finance their investments through their saved earnings. Recession might take a toll on the response generated and time taken in project selling out completely at the targeted price points; however, the quantum of impact that luxury projects face in times of economic uncertainty is significantly lower when compared to residential projects aimed at other categories.

India's Hottest Cities For Luxury Housing Investment

Mumbai

As the country's financial capital, Mumbai still stands alone as the costliest Indian city in terms of real estate pricing. This phenomenon applies equally to all categories of housing, but is especially true for luxury homes. The city has limited land parcels left within the prime centre locations; this has direct implications on the cost of land acquisition, and therefore on the pricing of the end product. Also, most luxury housing in these areas cannot offer the kind of ambient surroundings usually associated with such projects. It is not uncommon to find a project with units priced at several crore rupees overlooking a slum.

Nevertheless, this unique variable has not subdued the appetite for luxury housing. Mumbai is home to the headquarters of the largest financial institutions as well as of multinational corporates, and the incomes earned at the highest levels are staggering. This naturally gives rise to very high aspirations when it comes to housing the city's super-rich, who are willing to pay for the privilege of a penthouse or designer luxury apartment in areas like Prabhadevi, Lower Parel and Bandra Kurla Complex. 

Price points for luxury housing in the prime locations of Mumbai range from INR 25,000/sq.ft. to INR 110,000/sq.ft.

Delhi NCR

Apart from South Delhi, Gurgaon remains a hot market for the super-luxury housing segment as it has a generous complement of buyers with high financial clout and therefore aspirations to own such homes. Gurgaon is home to a considerable number of HNIs who account for a lot of demand for any project launched in this category. With Gurgaon having successfully positioned itself among leading MNCs as the most prime and desirable business destination in North India, the saturation of affluent CXO-level individuals in this city is high. In addition, Gurgaon is the destination of choice for investors with large investment appetite because of the handsome returns they can expect for luxury housing. For these reasons, all luxury projects in Gurgaon so far have done extremely well.


Price points for luxury housing in the prime areas of South and Central Delhi range from INR 15,000/sq.ft. to INR 65,000/sq.ft. In the prime areas of Gurgaon, they range from INR 7500/sq.ft. to INR 30,000/sq.ft.

Bangalore

As the undisputed Silicon Valley of India, Bangalore has reaped the highest benefits of the country's IT/ITeS boom. The housing market in Bangalore has not seen major setbacks even during the worst of the real estate market slowdown. With a stupendously high saturation of highly educated and qualified IT professionals, it has for the longest time been the city of choice for most outsourcing of software development and IT-enabled business processes. Moreover, unlike Mumbai, Bangalore is a growing market in terms of geography, meaning that it still has considerable land parcels which can be added to the real estate map.

With many software parks having come up in its peripheral rather than central locations, new catchments for all types of luxury housing have been and are still being created. Meanwhile, the incomes of the highest-paid IT professionals as well as corporate head honchos in Bangalore are more than eminently suited for luxury housing. This is a city where the growth of the luxury and super luxury residential segment is likely to continue unabated for many years to come.

Price points for luxury housing in the prime areas of Bangalore range from INR 20,000/sq.ft. to 30,000/sq.ft.

SRR Homes makes premium Villas at Bangalore

Located near Devanahalli on Highway NH-7 Bangalore, The Preserve is a premium villa project from S R R Homes at Bangalore. Spread across sprawling 23 acres of landscaped greens, these villas are just 15 minutes drive from Bangalore International Airport.

The area being target for fast paced development due to IT-BT and Industrial boom, it is wise to invest in plots or house here for quick short-term gain. The Preserve villas offer a luxurious stay in Bangalore city with a real value for invested money. The carpet area of the premium villas here have choices from 1624 to 3200 sq ft and there are three types of plot dimensions to choose from - 30x40, 30x50 and 40x60.

The project is approved by BIAAPA and the residential layout houses world class facilities. Villas here are classified into three categories based on the carpet area. Type-1, named Beech ranges between 1624 – 1760 sq ft area while Type-2 named Cypress ranges between 1943 – 2105 sq ft area. Type -3 is named Durian, which is very spacious ranging between 2800 – 3200 sq ft area.

Common amenities provided for added comfort includes club house with swimming pool, party area, children’s play area, jogging tracks, basket ball court, volley ball court, tennis court, parks, indoor game areas and more. The security of the residents is ensured through 24 hrs security with compound wall and power back up. Initiatives like a sound sewage treatment plant and centralized underground water supply ensures convenience and healthy living of the residents.

The buildings are structured with RCC frames and solid cement blocks for all walls. Floors in villas are crafted with vitrified tiles. Anti-skid ceramic tiles with skirting in toilets, balconies/ sit out areas and staircases are made from sadarahalli granite. The main door is crafted with Burma Teak Wood frame and shutter. Care has been taken to ensure convenience of the residents in every aspects including floor planning, plug points, provisioning etc.

S.R.R. Homes is a leading real estate group head quartered in Bangalore and with more than a decade’s industry experience. Several remarkable real estate projects in Bangalore carry the inimitable signature of the group. Being passionate about quality, S.R.R. Homes believe in giving their customers the kind of living spaces that they would like to live in themselves. This is very evident in the careful planning, strategic positioning world-class amenities offered in their projects.

Pankaj Bajaj Launches Eldeco Hillside Residential Project in Neemrana

Noida:  After celebrating the huge success of the Eldeco Eden Park, Eldeco Group feels privileged to announce its second ambitious project in Neemrana, ‘Eldeco Hillside’.

Eldeco Hillside is developed for the end users who aim to live with fanaticism and enthusiasm. It is crafted with master plan modernization and surplus of benefits. In an effort to spread out happiness amidst the consumers and clients the Eldeco Group is articulating reliability and friendliness towards its customers in the form of new launches of the housing project.

It is loaded with exclusive interiors that never allow you to compromise on privacy. It offers a wide array of value added housing options- high-rise and low-rise apartments that are designed out pleasingly and leave no space for conservative apartments.

Pankaj Bajaj, managing director of the Eldeco group says, "Eldeco Hillside Neemrana is aimed at giving majestic way of life with all world class state-of-the-art features to keep the end user happy from all around".

Strategically located in Japanese Zone, Neemrana is well connected to the major locations of the metropolitan cities. It offers a choice of 1BR, 2BR and studio apartments in these apartments ranges from 550 sq.ft, 940 sq.ft, 1075 sq.ft, and 1080 Sq.Ft to 1230 sq.ft.

The residential project is sprawling over prime 22-acre plot allotted by RIICO and is located right in the center of Neemrana.  Pankaj Bajaj Eldeco brings to you a golden chance of buying a dream home at affordable prices at one of the swiftly developing destinations within the NCR-Neemrana. This high rise and low rise affordable apartment provides 3-tier security systems, 24X7 power backup, 24 hours water supply, round the clock security, quick access to schools, colleges, and hospitals.

The Eldeco Real Estate Group is continuously acting as giant developer of real estate sector in North India Since 1975. This group is commonly known for timely and quality delivery of projects. It had delivered a number of successful infrastructures in towns like Greater Noida, Lucknow, Noida, Kanpur, Agra and Delhi NCR.

Metropolis’ Electra offers comfort living in Bangalore

“Metropolis Electra” near Electronics City is located off Hosur Road , 6 kms from Silk board. The proposed Namma Metro Station is just 200 m away from the project.

The advantage of choosing Metropolis Electra is that one can enjoy a decent living close to office with all modern comforts at an affordable cost. For those who are looking for investment options, this is an ideal choice, because of its strategic location, which can fetch in good rental income.

 

Metropolis Electra offers 2 and 3 BHK apartments. The total built up area of 2 BHK is between 1200-1400 sq. ft. and 3 BHK is between 1430 sq. ft. to 1650 sq. ft. The project ensures infrastructure for improved living with facilities like multipurpose halls for conducting parties and events, visitors lounge, indoor entertainment options and separate play area for children. Adults have fully equipped gym and walkways around the building. 100% backup power, intercom, 24 hours security system and the project has rainwater-harvesting system installed. 

 The project has an impeccable construction with RCC framed structures and high quality cement bricks. Rooms have good cross ventilation and natural lighting. The main doors are crafted from teak wood frame with OST shutters. Vitrified tiles are used in interiors while balconies and bathrooms have good quality anti-skid tiles.

Car parking is offered in the basement of this G+4 structure. There are 49 units available with 10 units per floor. BBMP and several leading banks approve the project. 

Metropolis Properties is a leading builder in South India with several residential and commercial projects to their credit. Headquartered in Bangalore and with branch offices in Hyderabad and USA, Electra is one of the most prestigious ongoing projects of the builder.

Prestige group launches Sun Rise Park in Bangalore

Bangalore: Prestige Sun Rise Park in Bangalore offers beautifully landscaped space amidst classy specifications. Spread over 25 acres of of land, the well-designed apartments’ host of convenient amenities include recreational offerings, landscaped spaces, security systems etc. 

Offering 1- 3 BHK apartments with a panoramic view from the cozy interiors, the apartments are being built on serene environment with breathtaking sunrise view and fresh breeze in the middle of city life, according to a release.

Strategically located in the heart of Electronic City Phase –1, people can enjoy easy accessibility to the prime locations of Bangalore from here. MG road is just 17 kms and Koramangala is only 8 kms away. It offers excellent connectivity and is linked with Neo Town Road, Express highway, NICE Road and Hosur main Road. Professionals who are looking for a comfortable stay near to office can end their search with this project.

With 1BHK units available in 631sqft, it is an ideal option for single dwellers and small families who look out for affordable luxury. 2 BHK apartments come within 1123 – 1154 sq ft and 2.5 BHKs are with 1363 sq ft. 3BHKs are available from 1603 to 1647sqft floor area offering a spacious retreat. The variety of options available makes it viable for those who look out as an investment option, to choose the one falling within their budgets. And needless to say, investing in Electronic City is a fantastic idea considering the fast paced developments taking place here.

The project offers 1900 units with luxury ambiance, comfortable designs and lively amenities to garnish life in every sense. Features like exclusive clubhouse, community hall, gaming arena with playing ground and courts and green gardens all are perfectly assembled for catering love for luxury and class. 

Entertainment options ranges from Tennis courts, Badminton Court, Squash Court, Movie Theatre, Amphi Theatre, Children's Play area, Senior Citizens park and more. A well equipped Gymnasium with Steam & Sauna and a well maintained Swimming Pool helps to ensure that maintain health even in a hectic days.

Prestige is a leading and trusted group in South India with over 163 projects spanning over 46.97 million sq ft to their credit. This includes Residential, Commercial, Retail, Leisure & Hospitality sectors. At present the group has 33 ongoing projects with over 36.7 million sqft.  About 31 upcoming projects, totaling 16.18 million sq.ft, including apartment enclaves, shopping malls and corporate structures are awaiting from the group. Prestige is also the winner of more than 15 Awards including the International Property Awards, Asia Pacific 2012-13 which is a testimony to their quality

Low cost housing: RBI eases ECB norms

Apex bankers Reserve Bank has relaxed ECB norms for affordable housing projects by withdrawing minimum capital requirement and lowering total experience of developers to three years, while extending the scheme till next financial year.

"Developers or builders should have a minimum of three years' experience in undertaking residential projects as against five years prescribed earlier," an RBI notification said.

RBI also withdrew the condition of minimum paid-up capital requirement of not less than Rs 50 crore for the housing finance companies (HFCs) to avail external commercial borrowings (ECBs).

However, RBI said that the condition of the minimum net owned funds of Rs 300 crore (for the HFCs) for the past three financial years was unchanged. "The aggregate limit for ECB under the low cost affordable housing scheme is extended for financial years 2013-14 and 2014-15 with a ceiling of USD 1 billion in each of the two years, subject to review thereafter," it said.

It added that the ECB availed of by developers and builders shall be swapped into rupee for the entire maturity on fully hedged basis.

 RBI said that the interest rate spread charged by the National Housing Bank (NHB) may be decided by NHB taking into account cost and other relevant factors.

 "NHB shall ensure that interest rate spread for HFCs for on-lending to prospective owners’ of individual units under the low cost affordable housing scheme is reasonable," RBI said.

The central bank further said that the HFCs while making applications for ECB should submit a certificate from NHB stating that availment of ECB for financing prospective owners of individual unit is for low cost affordable housing.

HFCs should ensure that cost of such individual units should not exceed Rs 30 lakh and loan should not exceed Rs 25 lakh; and units financed should have maximum carpet area of 60 square metres, RBI added further.

Pune realty looks up to City Development Plan

Pune does not need segmented, fractional development. Piecemeal development is exactly what has been happening all these years anyway. The haphazard development of Pune has followed the usual course of opportunistic urbanization. Certain areas receive maximum attention while others are completely neglected, says, Anil Pharande, Chairman - Pharande Spaces & Vice President - CREDAI (Pune Metro).

If properly formulated and implemented, the Pune City Development Plan (DP) has the potential to give the benefits of proper urban development to Pune’s real estate sector, its economy and to its citizens. The city as a whole needs better, wider roads and traffic management, improved water supply and more hospitals, gardens and playgrounds and open areas.

It is not just some areas being administered to by individual corporators that need to see change – the whole city needs the changes that will make life easier for its citizens and contribute towards more rational growth. The patchwork improvements that are being promised will not help Pune to develop scientifically, rationally and beneficially. A closer look at neighbouring Pimpri-Chinchwad would reveal just how much can be done for a city if its policy makers adopt a unified and holistic approach to development.

While Pune continues to stagger under the pressures of infrastructure deadlock, the Pimpri Chinchwad Municipal Corporation (PCMC) is already passing on the benefits of visionary urban planning to its residents. The planned development model adopted by the PCNTDA has consistently ensured that real estate growth in the entire Pimpri Chinchwad belt has taken place in a logical manner. As a result, infrastructure in the PCMC has become one of the brightest gems in Maharashtra’s urban development showcase.

All stakeholders in Pune's real estate sector must insist on the proper and timely implementation of the Pune Development Plan. In the villages which have now come under the DP, there has been little or no progress on infrastructure for more than two decades. There is an urgent need for proper roads and other physical infrastructure in these areas, many of which which have already seen a lot of irrational construction and illegal projects.

If Pune’s development Plan is properly streamlined and implemented, all old and new areas will benefit from improved road networks which will help in the decongestion of the inner city. It would be a mature approach to ensure the proper formulation and implementation of the DP in a timely and progress-oriented manner, rather than looking at the improvement of only certain sections of the city.