A recent study by real estate advisor PropTiger revealed that luxury residential property sales rose to 29 per cent in the first half of this year
An increase in the supply of luxury residential units and the passing of the Real Estate Regulatory bill has renewed interest in properties in India among non-resident Indians based in the United Arab Emirates, according to property developers.
“We have seen a 50 per cent increase in demand especially from the UAE in our luxury segment” said Prestige Group general manager Sujith Sebastian on the sidelines of a recent Indian property show.
Prestige Group is the third largest property developer in India with property developments in major Indian cities including Chennai, Bangalore and Hyderabad.
“People want to invest in residential properties that are built on international standards and will give them a higher standard of living,” he added.
“They also want to invest with reputable builders so that they are assured of their investment and timely delivery.”
A recent study by real estate advisor PropTiger revealed that sales in luxury residential properties – classed as being priced above $111,172 – rose to 29 per cent in the first half of this year due to increased demand in the sector from high net worth individuals and NRIs.
“We are enjoying 25 per cent growth in demand which I believe is because we are offering a unique lifestyle to our buyers,” said a senior official at Mumbai-based Paradise Group.
“We recently launched the Sai World Empire project in which we offer the lifestyle of kings and queens. The units are based on themes of the British, French and Egyptian empires. These residential units are of international standards and designed with high-end amenities including a gym, spa, clubhouse, cinema and sprawling garden lawns with pool and barbeque decks. These things are a big draw with NRIs.”
Lodha Group, India’s largest developer by sales, said that while it caters to a wider section of the market the primary focus was on prestigious designer properties.
“We find a high demand for ultra luxury residences from the business community in Dubai, we focus on catering to their needs,” said Lodha manager Shashank Bajpai.
Catering to the wealthy, the group is constructing the world’s tallest residential building in Mumbai, which will have 117 floors when completed. The price for its smallest unit will range from $1.7m to $2m.
Another key factor driving demand for properties is the Real Estate Regulatory bill, established in India earlier this year.
According to property consultant JLL, the bill means buyers can be assured of the timely delivery of projects, as well as enforced, efficient and transparent dealings with developers.
“There is an abundance of luxury homes offered on the market and many attractive payment schemes but buyers needs to be sure that their investment is safe and this law gives them the much required confidence,” said Hiranandani Realtors Pvt Ltd sales manager Janardhan.