Besides, this overwhelming increase in spacious luxury houses is also attributed to the COVID-19 pandemic because people with high purchasing capacity seek liveable spaces with ample safety and amenity features.
The soaring rich class
India’s millennials, comprising 36% of the population, accounted for 54% of homebuyers last year, with an estimated combined spending power of over US$330 billion. With rising disposable income, they seek bigger homes and invest in high-end housing units, with luxury housing sales in India’s top seven cities jumping five-fold from 2018 to 2023.
Some studies claim that global wealth managers and private equity firms have produced more millionaires in India’s financial capital, Mumbai, than in Rome in the last few years. Eventually, the real estate market in India is currently witnessing high demand from these burgeoning young millennials.
A survey by Sotheby’s International Realty also depicts similar trends, showing a growing number of high-net-worth individuals, including NRIs, considering purchasing luxury real estate in India. Amidst these developments, the demand for luxury homes is increasing phenomenally as the growing affluent class aspires for superior amenities, spacious living areas, distinctive designs, prestigious addresses, a healthy lifestyle, and a high return on investment.
Moreover, the uptick in NRI participation reflects renewed confidence in the Indian property market and the appeal of investing in premium and luxury real estate, particularly in Goa, Mumbai, and Delhi-NCR.
A very interesting fact is unveiled in the Luxury Outlook Survey 2024. The findings of the survey reveal that the majority of holiday home buyers prefer Goa as a second home destination.
Let’s explore what are the salient features of Goa’s real estate that appeal to both HNIs and NRIs.
Goa is becoming India’s primary destination for luxury and ultra-luxury properties due to its picturesque location, favourable climate, and perfect balance of nature living and modern comforts. Smart houses and healthy living have become increasingly important for residents, as they reflect their social status and work-life balance. Second homes and facilities have become essential for buyers, offering safety and wider spaces for healthy living.
Goa is a well-connected state and is expected to improve with the opening of the MOPA airport, leading to increased flights and a boost in the tourism sector. The growth of nurturing gated communities, with top-notch security and improved medical facilities, is also driving the growth of luxury homes. Sustainability is driving the future of luxury holiday homes, emphasising intangibles like creating meaningful connections with customers and contributing to the environment.
Goa’s hidden natural and cultural beauty has attracted many tourists, and with the work-from-home culture becoming a norm, more people are looking to make Goa their permanent home. North Goa and Sindhudurg are already thriving grounds for luxury housing, plotted developments, farmhouse communities, grand villas, and second homes. The robust housing demand, growing income stability, and infrastructure developments will ensure that this area continues to be a popular investment destination.
NRIs are lured by lucrative realty market in India
India’s luxury real estate market is experiencing a significant transformation, with an expected CAGR of over 5% in 2023-2028. The demand for high-end residential properties is increasing due to the allure of opulent living spaces, cutting-edge amenities, and prime locations. Non-Resident Indians (NRIs) are increasingly investing in India’s luxury real estate, injecting $13.1 billion into the market in the previous year. By 2025, NRIs are expected to account for 20% of the country’s total real estate investments.
Investing in luxury real estate in India is a strategic move for NRIs to diversify their investment portfolios, as real estate assets provide a hedge against market volatility and offer prestige and long-term value appreciation. The competitive pricing in key destinations like Goa, coupled with increasing rental yields and potential for property appreciation, make it an attractive option for NRIs seeking long-term investment gains and capital appreciation.
Real estate developers in India are also offering upscale amenities that cater to the refined global lifestyle of NRIs, such as state-of-the-art security systems, smart home technologies, wellness centres, and premium concierge services. This collaboration between top-tier developers and NRIs highlights the increasing sophistication and international appeal of luxury real estate in India.
In conclusion, the soaring rich class, comprising 36% of the population, accounted for 54% of homebuyers last year, with an estimated combined spending power of over US$330 billion. The Indian economy attracts investment, leading to a surge in real estate demand and property prices in promising markets like Goa. This trend is expected to remain on an upward trajectory due to political stability in the country and India’s spectacular performance in the world economy.
Sheeshram Yadav, Managing Director of Yugen Infra Pvt Ltd
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Published: 19 Jun 2024, 12:19 PM IST