The Luxury Real Estate Market Will Expand in 2022: Contributing Factors?

The luxury real estate market has fared extraordinarily well in recent years, without a doubt. Premium condominiums, luxury housing, and villa developments are selling like hotcakes in India. It is attracting attention not just from local purchasers, but with the implementation of RERA in the industry, which has resulted in favorable regulatory measures, improved transparency, and more consolidation, an increasing number of NRIs are considering it as a profitable alternative for investing.

Share on facebook
Share on twitter
Share on linkedin
Luxury real estate homes

Even though the Coronavirus outbreak has delayed the investment rush of High-Net-Worth Individuals (HNIs), the recovery of property markets has strengthened the uber-interest rich’s in the real estate industry. According to a recent poll, HNIs and ultra-rich investors are highly interested in investing in the property market, particularly in houses worth more than Rs 5 crore. When the Coronavirus crisis was in effect, the wealthy investor class massively invested in luxury real estate for personal reasons rather than for appreciation or ROI. It seemed reasonable not to explore because of the uncertain times. However, with the economy gradually opening up, the ultra-rich are again bullish on investing in luxury properties. If the cities of Delhi and Mumbai get considered as instances, the year 2021 witnessed many purchases of luxury homes in India of over 100 crores.

While the industry did experience a brief pause owing to the second wave of COVID-19 last year, it quickly recovered once the wave passed, and reports indicate that it will continue to develop substantially in 2022. It is not simply the luxury property itself that is motivating individuals for upgrading to luxury housing, but also the lifestyle.

Why is the luxury real estate market expected to rise in 2022?

Let’s take a deeper look at the luxury real estate trends in 2022 fueling the sector’s growth.

  • An excellent location that gets well linked with a nice atmosphere, close to the city center, facilities, and workplaces, makes the location a vital aspect in the choosing of a house. While individuals crave connectedness, open spaces within and outside of living places are highly critical to people, particularly after COVID-19, to preserve their physical and mental well-being. The health advantages of living in big homes surrounded by nature and a pleasant atmosphere are enticing purchasers to invest in luxury residences. Some well-traveled individuals are millennials who have been exposed to luxury so closely that they get prepared to spend money on luxurious lodgings that give a rich ambiance.

  • Luxury property also gets preferred due to technological properties. These include home devices that give the owner control, ease, comfort, and security such as CCTV, flash cameras, and biometric gates at every edge in the elevators, hallways, and common spaces.

  • One important reason why individuals choose luxury houses is that they want to live a lifestyle that incorporates the work-from-home concept while still enjoying the comforts of luxury living. With more and more organizations adopting hybrid or work-from-home models permanently, residences increasingly require room to accommodate work-stations as well, leading to an increase in luxury living.
  • Another contributing element is that luxury homes real estate has the benefit of being a performing asset, which means that they serve a practical purpose while increasing in value. As a result, consumers regard them as the ideal investment that ensures multiplied profits.
  • People are investing in luxury home real estate due to the thriving startup culture. Monetization of employee stock ownership plans (ESOPs) is at an all-time high in the startup environment. Employees are directing the monetized earnings to purchase residences to make better use of the cash with significant tax arbitrage.
  • Folks are becoming more centered on emotional ties and savoring the understanding of doing their part for the environment. They ensure sustainability via fuel efficiency, water management, and air quality. Sustainability also includes dwellings validated with the top standard of eco-friendly accreditations and are thus updated to luxury homes.
  • Other important factors have led to the rise of the Indian real estate business, particularly the luxury real estate industry. Lower interest rates on house loans, decreased stamp duty, and registration fees are some of the causes that have resulted in more purchasers selecting luxury real estate. Furthermore, rising family income is a motivator for luxury real estate investment.

Assetmonk is a smart real estate investing platform that assists you in comprehending and investing in commercial real estate. Via fractional ownership and crowdsourcing, Assetmonk provides superior A-Grade investment possibilities to its investors.

Luxury Real Estate Market FAQ'S

The Indian real estate sector is estimated to be worth $1 trillion by 2030, up from $200 billion in 2021, and to deliver 13% of the country’s GDP by 2025. Retail, hotel, and commercial real estate are also growing exponentially, supplying much-needed infrastructure for India’s expanding requirements.

According to property expert Anarock, Tardeo in South Mumbai is India’s most expensive residential neighborhood, charging a stunning Rs 56,000 per sq ft average pricing for residences accessible in the primary real estate market.

Related Articles

istockphoto 1312767508 612x612 1

What is National Securities Depository Limited (NSDL)

NSDL or National Securities Depository Limited is a financial institution that was established to keep securities like shares, bonds, etc in the shape of non-physical or physical certifications, that is in demat format. The securities are maintained in deposit accounts, which are similar to funds in bank accounts. It allows for quick securities transfer because ownership gets transferred merely by ledger entries. This is frequently done digitally, saving the extra time required in the previous practice of exchanging physical certificates once a deal was concluded. India’s capital market, which has been around for almost a century, has always been quite active. But, due to settlements that are based on paper, it had significant flaws such as poor delivery, prolonged transference execution, and so on.  To address these concerns, the Depositories Act 1996 was enacted and went into effect on Sept 20, 1995. This legislation mandated the Security Depositories establishment in India to manage securities.  Security is a financial asset that…

Read more
istockphoto 1176996544 612x612 1

Step-by-Step Process for Income Tax Login

Income Tax Login step-by-step process? To finish the E-filing of IT Returns, you must first successfully finish the registration procedure and connect to the IT E-filing site. You may utilize the e-filing site and a variety of services related to tax by finishing the income tax login process. The steps below will walk you through the process of finishing the income tax E-filing site login. Also, read Tax Saving via Deductions Under Section 80C 80CCC 80CCD and 80D. How To Do Income Tax Login? Step 1: Navigate to the Income Tax e-filing website. Select the “Login Here” option in the upper right-hand side of the site.   Step 2: After clicking the “Login Here” option, you will be sent to the Income Tax Login webpage.   Step 3: Also on the login screen, enter your User ID, which is your Permanent Account Number or PAN. Enter the password you created when you registered for your IT e-filing account. After you’ve…

Read more
istockphoto 1252264724 612x612 1

Everything about CSC Digital Seva Portal

CSC Digital Seva Portal is a gateway that provides info on numerous firms and electronic governance to inhabitants in remote and rural areas of India. A CSC facility’s full name is Jan Seva Kendra or Common Service Center. Common Services Centers or CSC is a network based in India that aims to transform India into a digitalized country. CSC Scheme 2.0 got started in Aug 2015 for improving accessibility to digital and technological services for citizens in remote and rural areas of India. The CSC Digital Seva Portal’s Goals Connect 2.5 lacs of Gram Panchayats in India. Citizens of India should access trustworthy and up-to-date info. In villages, all basic services are given in a single place. Deliver low-cost, services that are of high quality to average people. Governmental welfare and social assistance programs are promoted. Develop new rural jobs and promote rural entrepreneurship. Registration for the CSC Digital Seva Portal To commence the registration process, one must comply with…

Read more

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is an Open-ended Deferred Pension Plan. The scheme offers guaranteed return of 8% per annum for 10 years. Minimum pension amount is Rs. 1,000/ month and maximum pension amount is Rs. 10,000/ month depending on purchase price. Returns will be paid on a monthly basis. On maturity, the entire pension wealth will be paid in lump sum and no annuity will be offered thereafter by the Pension Fund Regulatory and Development Authority (PFRDA). The first installment of 5% or 50% whichever is lower is payable within 2 years from the time when account balance reaches Rs 1lakh/- which will happen after completion of 10th year under this scheme i.e before 2040s for most of us today! PMVVY is an Open-ended Deferred Pension Plan PMVVY is an open-ended deferred pension plan that provides guaranteed return of 8% per annum for 10 years. The scheme offers minimum pension amount of Rs. 1,000/ month and maximum pension amount of Rs. 10,000/ month…

Read more
EPFO KYC update for UAN

How to update KYC for EPF UAN?

KYC is being adopted by most of the government and private sector organizations for maintaining the proper records of official matters. The Indian government has already made it mandatory for employees as well as consumers to link their Aadhar card with various types of accounts and digital entities. Therefore, it is also compulsory for you to link your EPF with your Aadhar as well as other important digital documents. Don’t know how to do it? Don’t worry, we have got your back! In this article, we’ll learn how to update KYC for the EPF’s UAN and also go through the basics. Stay tuned until the end to understand it better.  What are the advantages of updating your EPF’s KYC details? A wide range of benefits can be reaped by updating the KYC on your EPF account. Some of those benefits are: You can make online withdrawal claims, which happen only after you link/seed your Aadhar with the UAN The transfer…

Read more
istockphoto 1353920585 612x612 1

EPF Form 10C – Benefits, Eligibility & Documents

EPF Form 10C is used to request a reimbursement of the employer share, the withdrawal benefit, and the scheme certificate for membership retention. An Employees’ pension fund (EPF) or Employers’ Pension Scheme is a retirement plan that EPFO enfranchises for employees working in organized sectors. Both the employer and employee contribute to EPF during a person’s employment period at that company. UAN – This unique number is assigned to each member of EPFO. It consists of 12 digits. An EPF certificate gives information about the employee’s employment, including the service period and the family members that will be able to benefit from the scheme in the event of death. Individuals can choose to continue their work after they retire from a company. You can either transfer the company to your next one or withdraw it. In case of withdrawal, the person must file EPF Form 10C.  Filling EPF Form 10C   Online and offline filings of Form 10C are possible. These…

Read more