The luxury estate business segment did not suffer much slowdown as specific as it was in the mid level properties in the last few years. With the latest cut in the rates of GST, the demand will pick up and also the luxury estate has its own customer base which is yet another boon.
The factors in the segment of luxury apartment as per the realty players are the location, niche provided and the amenities. More than the price these factors matter since the buyers are mostly affluent people.
In the luxury segment the problem of huge unsold inventory doesn’t arise and there are limited quantity of construction in this high end segment of the business.
As per the developers there is a little slowdown in the demand in the past few months for the under construction properties that includes the luxury estate business segment too but as there will be a cut in the GST rate from 12%, the interest of people will come back thereafer.
“People stopped buying for a very short term, looking for a clarification on GST and that is the only reason why the demand was low and since now the clarification has come and rates are reduced, it has been a booster to the luxury demand,” said Pankaj Bansal, Director M3M, makers of the Trump Towers in Gurugram, told IANS.
According to Abhishek Kulkarni, Chairman of Pune-based Million SqFt Realty, the demand for high-end property has been steadily rising as such properties are built in the metros where multinational companies have entered and businesses have grown in the past few years, leading to a sustained demand from the well off.
Abhishek has an inspiring story himself from being call centre executive to becoming successful entrepreneur. He has successfully spread his real estate consultancy business, ‘Million Sqft Realty Pvt. Ltd’ in Pune to spreading it across Mumbai, Bengaluru, Delhi, Goa, Dubai and London in a short span of 2 years.
There is a trend of investing and safeguarding their funds in the high end properties with the intention of liquidating it in the near future. This trend has increased among the Indians, the market participants said so.
Bansal from M3M said: “A luxury property creates a much higher incremental value in comparison to a product in the mid-segment. For example, if price in the mid-segment grows from Rs 5,000 to Rs 8,000 per square feet over the period of 5 years, during the same period, the price of a luxury property would have risen from Rs 15,000 per square feet to Rs 25,000-30,000 per square feet.”