Location Is Crucial For Ultra Luxury Homes

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Post By By Buniyad

02/12/2015

Many developers are putting their best efforts to create new zones and addresses across India that can entice HNI property buyers. This aim has met with varying levels of success on the ground when it comes to influence the ultra-rich clients. Except for up-gradation in design concepts and addition of some new items to accentuate a plush lifestyle, the general baseline concept of luxury homes continues to materially remain the same in many cities. The pre-eminent addresses or pin code values do matter a lot and the ultra-rich are inclined to pay extra premium to avail them.

Cities like Delhi, Gurgaon, Pune, Bangalore have witnessed a high occurrence of the developers proffering branded residences as alternative to elite homes in the most affluent localities within these cities. While there is confirmation of first-generation buyers who are evaluating and taking into account such options in these cities, the conversion rate among the historically rich has been insignificant. The like-mindedness of this segment is that the branded residences offer little value addition and on top of that the additional premiums charged on them are the artificial factors that do not furnish true value.

The demand continues to grow solid for the options in authentic premium locations of key Indian cities, but newly fitted luxury residences are also seeing their share of action as much as the projects on offer meet certain parameters. The deals conclude swiftly in the sellers market where demand overshoots supply. Annual returns in such pockets are in the neighbourhood of 25%, and this figure will continue to see northward movement over the forthcoming years as supply constraint drive prices up further.

Delhi
When it comes to established and high-value locations, the preference of the HNIs is nearly inflexible. The ultra-rich clienteles from Delhi, Punjab and Uttar Pradesh with budgets ranging from Rs.50-300 crore have a special inclination towards the micro-market of South Delhi. Golf Links is one such coruscating market in the perspective of demand when compared to Lutyens zone. Furthermore, Shantiniketan and Vasant Vihar are the two HNI destinations where demand is ideally superior to supply. The other cities also have similar pockets majorly, but also reflect confirmation of certain degree of demand diversion to newer locations and concepts unlike Delhi.

Mumbai
With the Central Business District (CBD) shifting to BKC for all practical purposes, the prospective buyers who have not yet considered any option beyond Malabar Hill or Nepean Sea Road zone are now evaluating fresh areas like Worli, Bandra-BKC and Mahalaxmi as alternatives. Bearing in mind the finite supply in the historically prized locations, HNI home-buyers are looking for premium options that provide 24×7 security provision, a gated community experience and ritzy club houses as an amplification on their experiences in stand-alone buildings in the traditional premium areas. The advent of K. Raheja Corp’s ultra-rich gated community Vivarea in Mahalaxmi, Mumbai has been registered as seeing plenty of wealthy South Mumbai residents taking it as luxury residences in every true sense. The K.Raheja Corp must have sureshot managed to create a new location that redefines opulence in South Mumbai. Likewise, in BKC and Goregaon where Sunteck and Oberoi have played an indistinguishable role in constructing new luxury addresses for HNI buyers and infact reviving the whole concept of sumptuous living.

Bangalore
Developers like Total Environment and Chaitanya etc have served the city with some of the notable luxury projects in brand new premium locations. They have also contributed in turning Whitefield into high-value address and also their concluded projects commanded exorbitant premiums undeniably. The offering, product design, specifications and buyer profile are exceptional enough to make a difference. Total Environment’s project is considerably one of the best luxury offerings in India and the demand for such projects in Whitefield significantly transcends supply.

Ultra-HNI’s look for :-

When it comes to buying a luxury residence, Ultra-rich buyers consider the following aspects:

The profile of the residents
Sharing the neighbourhood with celebrities, tycoons, renowned CEOs of the city does matter a lot. It definitely tends to make a difference as it is a matter of status statement and is also good for businesses. These ultra-HNIs due to the reason of prestige are drawn towards the creamy layer environments. Additionally, many-a business deal are finalised at these residential locations during social interactions, get-togethers and holidays. In this context, Amrita Shergill and Jor Bagh in Delhi come readily in mind whereas in Kolkata Ballygunge and Alipore are also known for these reasons defined by a resident profile.

Low density
Rich and uber class prefer locations with a dense population and rather not the crowded areas of the city. Locations like Malabar Hill, Worli and Bandra Bandstand in Mumbai are traditionally the locations where the rich pay exorbitant premiums.

View & privacy
Golf-course view, sea view and an exclusivity level are few aspects which are of a great significance when it comes to defining opulence for India’s ultra rich. Luxury offerings in cities like Mumbai, Delhi and Bangalore rarely bring about much tantalize from a lot of wealthy buyers if they don’t rank high on this aspect.

Ready access to the City’s nerve centre
Residential apartments in Mumbai’s legendary NCPA commanded sky-high premiums for various aspects. The USP of NCPA however was its close proximity to the erstwhile CBD of Nariman Point. Furthermore, Boat Club in Chennai and Golf Course Road in Gurgaon also share this important attribute of nearness to these cities ‘centres of gravity. Mumbai’s BKC area in this context has significantly emerged as the new luxury address of Mumbai because of CBD and Diamond Bourse which has been now shifted there.

Overall luxury experience
The definition of luxury has been misapplied in the Indian Real Estate and is being profoundly scanned by uber buyers when it comes to evaluate offerings. Luxury anyway goes beyond clubhouses and quality of fittings furnished in the projects. A plethora of aspects are infact evaluated to gauge if the ‘luxury’ tag actually applies. One Avigna Park in Mumbai among other phenomenal success stories appears to be one such prominent winner when it comes to proffering real opulence in most aspects. Also, a typically India’s upper rich class are indeed booking into luxury projects in new locations which is however true in many cases like Atmosphere on EM Bypass and Urbania by Bengal NRI, south of EM Bypass in Kolkata against the traditional luxury locations of Ballygunge or Alipore. However this trend is coming into prominence in the cities where HNIs perceive a vacuum in terms of offerings at the traditional premium locations.

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