Raised Luxury Housing Demand Mends Sluggish RE Market

Real estate market is set to regain smooth sales as there is an improved sale in the luxury housing segment.

India real estate market currently goes through a sluggish momentum. The real estate builders expect that they can overcome this in the year 2013. Sluggishness has troubled the entire real estate developers of the country. Yet they hope to get out of it with improved demand for luxury housing.

There has been a steady development in the sales of luxury housing in Pune. Real estate experts opined that this phenomenon is common across the country yet they said the rate of development is higher in Pune.

As per Cushman & Wakefield India’s report Bangalore holds nearly 50% of total launched luxury housing units. Pune contributes around 8% Cushman & Wakefield told TOI.

According to Cushman & Wakefield India’s Shveta Jain, despite the sluggish real estate market there has been an improved demand for luxury housing units, mainly due to the enlarged number of high net worth individuals (HNIs).

JLL (Jones Lang Le Salle) India’s Ashutosh Limaye also had a similar view. For him India real estate market is always relatively stable. It is not much affected by the global economic recession and crises. Seeing this increased demand for luxury housing, real estate builders launch more numbers of luxury projects. Many of such projects are worth many crores or millions.

There is a comparable variation for the luxury housing demand from cities to cities. When Pune, Bangalore and Hyderabad witnessed an improved demand NCR, Kolkata and Mumbai witnessed a downward fall of demand.

Goregaon East (Mumbai) and Gurgaon (NCR) were rated the top cities with maximum appreciation. These areas had an increasing value appreciation at the rate of 44% and 42% respectively. Cushman & Wakefield India listed Hebbal (Bangalore) and western areas of Hyderabad as the 3rd and 4th best destinations. The value appreciation of these places was rated at 21% and 13% respectively.

In Comparison to the two launches in 2011, there are three launches of luxury housing in Pune this year. Most of the unit carries a price tag which is above Rs.1 Cr. Some luxury housing units are worth Rs.7 Cr. Pune has a relatively better demand ratio for luxury housing segment mainly due to lower and exciting land prices of the area.

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