Super luxury segment immune to real estate slump

In the current lukewarm real estate market scenario, certain apartments stick out not only for their exaggerated prices which range from Rs. 15 crore to Rs. 30 crore and above, but also due to the fact that they appear to be resistant to the economic slowdown which has been affecting the rest of the sectors and segments.

Who are the buyers?

The reason behind this is that most of these flats are being sold via “by invitation only”, and are nearly always bought for personal use by high net worth (HNW) property buyers, who have not typically been affected by the slowdown.-

What is ‘super luxury segment’?

Properties placed in the price bracket of Rs. 10 crores and above are categorized as the ‘super luxury segment‘. As per India’s top property consultancy firms, this category has not been experiencing any slump. As buyers who purchase into such properties are not burdened with issues such as loss of income or job losses, but are instead exalting their lifestyle by purchasing such properties, provided that these properties are not volumes driven sales.

This is in sharp distinction to the existing trend at the more affordable segment of the market where investors, who had purchased apartment units at comparatively lower prices, are currently unable to sell them to end-users as several potential middle class home buyers are delaying their house purchase plans.

To benefit from this tiny yet high margin market, a slew of leading developers have been developing and launching super luxury projects. To keep up their exclusivity as well as to create an aura around them, several of these launches are not publicized or even advertised.

Advantages of purchasing into the ‘super luxury segment’

The distinctive merchandising proposition of these projects is mostly their location, great obstruction free views, the developer’s brand name, higher product offerings and a hefty price tag that would not fit in any and every budget. These projects are majorly flourishing in cities such as Delhi and Mumbai.

In accordance with real estate and development firms involved in promoting high-end projects within Gurgaon, the city being the third highest capital income grossing of India, has been alluring business owners and entrepreneurs who crave for luxury residences and brands.

As per home buyers, they book these super luxury segment apartments primarily because of the exclusive gentry (industry parlance for desirable neighbors).

Although the size of this market is comparably small, builders are satisfied with three to four such sales within a month. Typical buyers of these properties are comprised of mid-rung industrialists, successful professionals such as doctors, lawyers to name a few.

Projects being launched by developers

According to realty experts, though the real estate market has been experiencing certain “pressure points”, the super luxury segment has largely remained aloof from the economic slowdown as those buying them are not merely purchasing a property but a complete lifestyle. DLF would be launching Camellias in Delhi while Sky Forest has been launched by Indiabulls in Mumbai.