By 2027, it is estimated that India will have a million millionaires. These are dollar millionaires we are talking about, with a minimum wealth of around Rs seven crores. It is worth noting, too, that this is the number of people who have declared incomes and assets to make the mark. The number could go far higher, if other parameters are applied.
After the sluggish last few years, there are hopes that the economy is poised to take off again. The luxury real estate market is showing distinct signs of levelling off and picking up. As a matter of fact, even when the overall economy is in depression, the upper-end real estate market, many a times, remains unaffected.
Why have luxury apartments become an integral part of Indian realty?
Over the last few decades, the concept of luxury has become an integral part of the Indian landscape and economy. Glittering malls, offering the finest goods from across the globe, were once quite rare but now, they are sprouting up in every city. Similarly, luxury apartments which were quite scarce, have now become a fashionable address and statement for the rich and the aspiring upper-middle class. Whether it is real estate, automobile or personal possession items, luxury is here to stay, as people aspire for better things. We are ready to pay a premium for perceived quality and superior brand value.
Media has also played a role in this, with the advent of movies, followed by television and now, the Internet. We can see up close how the rich lead their lives, what they wear and how they behave and we try to imbibe their sense of style. World-wide, aspirational luxury expresses itself in high-value purchases. In addition to real estate, cars, jewellery, watches, phones, clothes and accessories reflect class and luxury.
What is the difference between a luxury property and a regular one?
The prime reason why people are ready to pay higher amounts to acquire something, is pride of ownership. In the real estate market, the concept of luxury visibly shines through. What separates the premium from the regular? Are there parameters that differentiate between the two? The short answer is, yes.
The first parameter is the location. Luxurious apartments are typically situated in the most coveted locations. It is a question of the neighbourhood – the residents of these apartments typically socialise with people of their own social strata and prefer to live close to them.
The next factor is space. The ones willing to pay extra for their apartments, like to live large. They love hosting friends and need the extra space, particularly on weekends. They need more space for members of their extended families and sometimes, their staff.