How Pandemic Evolved The Luxury Real Estate In India?

The demand for luxury properties in India has risen dramatically in recent years. The possible reason for this sudden increase in demand could be the financial growth of India and its citizens, but this could be one of the reasons, not the whole scenario. In past years, luxury housing was only purchased by wealthy people, often known as high net-worth individuals (HNI) or non-resident Indians (NRIs). Whether NRIs or HNI, they all used to prefer luxury homes that can give them great ROI(return on investment). But now trends in India are changing because of the economic boost and financial literacy in India. 

For instance, recently, on 16th March, DLF sold their luxury flats worth 8000 crores in just 3 days in their new project in Gurugram; they sold a total of 1137 flats in just three days; this shows the strong demand for luxury properties in India.

In this blog, we will assess the evolution of luxury real estate and its future in India.

According to the prominent builders and consultants in India, demand for luxury properties boomed after the pandemic. Pandemic Influenced Investors to start investing in Luxury real estate and gold, especially luxury real estate, because this is the only asset that gives you fixed and expectational returns; other assets give such high returns; even some luxury real estate properties give returns of more than 50 percent after the Pandemic people started choosing luxury homes for several reasons, including the safety and security as well as the need for more green areas because of pollution and more space because space was the biggest concern during pandemic and most of the deaths were caused due to space scarcity. 

Apart from these factors, luxury real estate properties offer stunning amenities that offer a better quality of life along with high rental appreciation and overall appreciation of the property’s value.

Luxury Real Estate in India 

The pandemic worked as a wake-up call for everyone. Whether NRIs or HNIs, all started to invest in luxury real estate in India; after the pandemic, the need for more spacious homes was the priority, along with less dense neighbourhoods and more green space, because the security and safety of family became the utmost priority for everyone. India is the home to several startups and a newly industrialised country; because of this evolution in India, luxury real estate in India saw an immense boost in terms of investment as well as individual use.

The demand for real estate properties has also been influenced by technology; the distance between buyers and real estate consultancy such as Commercialnoida has been shrinking because of the use of technology. Today’s developers set up virtual tours, online home inspections, document processing, paperwork completion, and online home acquisitions without requiring physical visits. Because of this, buying a luxury house is now a fluid process in the hybrid environment of today.

Why Should We Invest In Luxury Real Estate In India?

Luxury real estate gives an appreciation of over 20 percent per year as well as it provides ultra-convenient living with high-end services and security. Some luxury properties in Noida, including Max Estates (4000 sqft) for 9 crores, Kalpatru Vista (3000 sqft) for 6.5 crores, County 107 (4000 sq ft) for 7 crores and Gulshan Dynasty (4000 sq ft) for 10 crores has over 20 percent appreciation and even average rental for these properties starts from 3 lacs per month that becomes 36 lacs per month; no other asset will give you such high-value yield in such a short period.

In India, luxury property owners can save on taxes through various means. One common method is by claiming deductions on the interest paid on home loans. Additionally, if the property is rented out, owners can deduct expenses such as maintenance and property taxes from their taxable income. Another way is by taking advantage of depreciation benefits, where a portion of the property's value is deducted annually to reflect its wear and tear. Some luxury properties also qualify for special tax incentives in certain areas or under specific government schemes. It's important for luxury property owners to consult with tax professionals to ensure they are maximising their tax savings while staying compliant with regulations.

As the rupee depreciates, NRIs have a great opportunity to invest in luxury real estate in India, with 47% reported interest in recent polls. Residential real estate prices are still recovering, giving purchasers strong negotiating power, especially with ready-to-move inventory. Luxury properties offer excellent rental yields despite being pricier. Buyers prioritise sustainability, high-quality living, and amenities supporting mental and physical health. Renowned developers like Sukhwani Constructions benefit from this trend. Modern buyers seek full-service lifestyles with a focus on sustainability and well-being, prompting developers to emphasise features like ample lighting, ventilation, and green spaces. This trend reflects a shift towards holistic living and highlights the importance of brand reputation, product quality, and location for buyers. 
 

Conclusion

Luxury real estate in India has the best appreciation value as well as provides an additional layer of ultra-modern amenities and security. It has the highest rental yield in a year, and this segment of real estate is in demand and will be in demand in the future, too, because of the increasing value of the Indian economy.