What India and the GCC markets are doing for luxury real estate?
If the most recent selection of expensive real estate deals made through celebrities is anything to go by, the Indian real estate market has been seeing a growing trend, especially inside the opulent dwelling space. Such deals highlight the remarkable increase in demand for this outstanding area of the city’s real estate market. The market for luxury real estate has shown exceptional growth recently, outpacing business projections and attracting the interest of many HNIs and NRIs. The segment and the Indian real estate industry as a whole will benefit from the converted investor hobby, fueled by the anticipated increase in capital values and expanded investor hobby.
According to a business survey, a 40% spike in sales is projected in the area as demand for ultra-luxury homes priced beyond INR five crore has sparked the converting desires throughout the epidemic. In Q1 2022, the income within the high-cease category increased to 23% from Q4 2021’s 16%.
Additionally, it should be noted that until a few years ago, HNIs, the ultra-wealthy, and NRIs were the main customers closest to this segment in India’s upscale housing market, which was restricted to certain features, upscale neighborhoods, and HNIs. However, the United States of America saw increased expectations, a better grasp of global trends, and expanded earning capacities between 2000 and 2005, which blurred the notion of “luxury.” India is so diverse that new terms like “ultra-luxurious,” “top-rate luxurious,” and “affordable luxurious,” which referred to mansions with first-class amenities at reasonable prices, started to emerge. These residences were thought to cost more than five crores. There are many buyers of such affordable beautiful houses nowadays, and builders have changed their approach.
Being able to see Indians establishing a pastime in our neighboring GCC market is no longer unusual. Rich Indians were at the top of the list of buyers of goods in Dubai, according to a relatively recent research report. Indians have been among the top three nationalities to purchase real estate in Dubai since 2004. Between 2015 and 2021, they sold residences worth AED 83.62 billion. The Gulf Cooperation Council (GCC) real estate, which includes the UAE and Saudi Arabia, has also demonstrated a strengthened demand. According to another analysis, GCC real estate transactions increased by about 52% y-o-y in 2021, and the picture for 2022 looks to be more balanced.
Due to Dubai’s closeness to India, positive government changes, and the pride of owning a premium property in an upscale US destination, the demand from Indian elites and high-level executives has been favorable. For opulent homes and future appreciation, the majority of the famous and cash-rich Indians are investing in Dubai. Since many Arabs see India as a viable real estate holiday destination for the future, it is possible to think about it in a reverse approach. A “Golden Visa” has just been introduced by the UAE for those looking to purchase residences worth AED million or more. The range was previously changed to AED 5 million and higher.
Source: TOI
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