Reportedly 3,000 applications were received for 1,137 Gurugram luxury apartments costing more than Rs 7 crore each
A picture that has gone viral on the internet depicts a large crowd at the office of the real estate company DLF following the opening of its latest project in Gurugram. As per experts, this photo depicts the number of people queuing up to buy luxury properties worth more than Rs 7 crore. A recent report claims that DLF’s new luxury project, Arbour, is the company’s first high-rise condominium in almost ten years which is creating a record-breaking buzz in the city According to a DLF broker the company sold all 1,137 flats at ₹7 crores each over a span of three days. Also, the apartments numbering around 1,100 received calls from at least 4,500 interested buyers which is massive and mind-numbing
Real estate developers report a growing interest in big, high-priced apartments with amenities such as concierge services, spas, multi-level parking, large green open spaces, and a pool house. Private houses and old apartment blocks in Indian cities lack these amenities. In recent years, the supply of new luxury homes in India has been constricted, owing to an economic downturn in 2019 and then the disease outbreak, which deadened sentiment in 2020 and forced developers to halt the latest project launches. However, things are shifting rapidly
why such a massive rush for luxury homes?
Numerous experts think that the recent Narendra Modi-led government’s proposal to cap capital gains on investments in housing units at Rs 10 crore is suspect for the surge in luxury home purchases. The recent budget proposed capping the tax reduction from capital gains on residential house investments under Sections 54 and 54F at Rs 10 crore.
There could be other possible reasons for the massive demand could include the builder’s marketing splash and branch credibility, a lack of supply in the luxury segment, capital budget tweaking in the recent budget, price drops in the pre-launch stage, and price increases being profitable. changing lifestyles, improved amenities and security, demand from a specific market segment, the return of NRI investors, and a fear of missing out.
Pros & Cons
Individuals brought up the topic of “economic imbalance” in society. “All units above 5 crores were sold out when Shalimar group revealed ultra-luxury premium villas in Delhi NCR, and units below 3 crores are still unsold. There are many incredibly rich Indians. So, it is a concern worthy issue that how can a particular segment of society afford these apartments in bulk and why cannot other segments of society can even buy a single unit.
This rise in real estate demand is largely due to the country’s improving economic conditions, which have enabled homeowners to invest in properties as an asset. Furthermore, the existence of well-developed infrastructure and increased connectivity in Gurgaon has contributed to these cities’ attractiveness as residential hubs. The growing preference of homebuyers for ready-to-move-in apartment buildings and villas has fueled Gurgaon’s growth.
Following the pandemic, the luxury housing market has seen significant traction; buyers are actually responding to residential purchases across segments as sale prices have rectified in recent quarters, making investing in property appealing, particularly in the premium market.
Finally, every Indian wishes to own a home of their own. With the pandemic, this desire has grown even greater. People who were deferring a purchase decision will fuel overall housing demand in the coming years.