After a period of setback, luxury housing in India is getting back on track with more and more investors buying such homes. In repropent years, a large number of luxury housing projects have been launched in various locations across India. A little observation would show you that most of the leading developers in India are developing such properties. Mumbai, Bangalore, Hyderabad, Pune and the NCR are the main markets of luxury housing in India. Being metro cities, these regions attract homebuyers seeking an alluring lifestyle. Moreover, a number of lower tier cities undergoing rapid urbanisation, the market for luxury homes is expanding.
The realty sector in India was stuck in a period of credit crunch and stagnancy for the last few years. Among the different segments, luxury housing was affected the most. A number of reforms which caused a temporary slowdown in the economy led to a shrinking in the purchasing power of the potential buyers. This, in turn, resulted in a fall in the sales of luxury properties and caused a lack of credit for the developers. Developers went on building such projects expecting the situation to improve over time. The inventory of unsold luxury properties kept growing due to the stagnant market.
However, there is now a relief for the builders with NRI homebuyers eyeing luxury homes. Many NRIs are starting to buy such residences in India for personal use, in case they choose to come back home in the future. Some, again, are purchasing luxury homes for investment purposes as these homes can help one earn lucrative returns. One of the reasons why NRIs invest in properties in India is that the value of the Indian rupee being much lower compared to the USD, the homes in India are relatively cheaper for them.
Currently, the prices of luxury properties are quite reasonable, as a result of the developers offering them at competitive prices. With a large unsold inventory, most developers are trying hard to sell off as many of these luxury properties as possible. To beat the competition in the market, a developer would naturally try to offer a property at alluring prices, which makes now a good time to buy a luxury home. Taking advantage of this opportunity, the NRIs are purchasing these properties before the prices surge high.
The establishment of RERA has also played a key role in attracting the interest of the NRIs. Previously, the real estate sector in India was greatly opaque. The RERA has been established with the goal of ensuring transparency in the sector and it has been doing a good job at it so far. RERA has already proven its competence in solving disputes between buyers and sellers and bringing corrupt developers to justice. This has helped to build trust among the NRIs, who were earlier sceptical towards buying homes in India due to the shady activities by the developers to trick buyers into paying excess money. It is expected that with NRIs investing in Indian real estate, the realty sector has a bright future ahead.