Luxury projects focus in India property market
Real estate developers in India are set to launch more luxurious property projects despite recent commitments to more affordable property.
Last year developers saw demand for luxury real estate fall off and declared that in 2010 they would be concentrating on the middle and lower end of the market. But what a difference six months has made. They are now reporting a surge in demand for higher end real estate.
The country’s largest real estate developer, DLF, said it sold more luxury and semi-luxury apartments in December than ever before.
Indiabulls Real Estate confirmed that it has sold 100 apartments in its 65 storey Indiabulls Sky in Mumbai in the past four months and it has recently launched another luxury project, Indiabulls Sky Suites.
It is now looking to launch as super lusury development ‘by invitation only’ and priced 10 to 20% higher than its other luxury projects. A spokesman said it has been encouraged by response for its premium housing projects.
Mumbai based developer, Orbit Corporation, says it will launch one luxury project in the city every quarter. Orbit sold off its first lot of 18 flats in Orbit Terraces, its premium housing project in the city within 17 days of its launch.
‘A host of reasons have helped property sales. Interest rates are down, property prices are down 30% from the peak and markets are doing well. All these are giving confidence to buyers to buy premium homes,’ said Rajeev Talwar, executive director, DLF.
Agrees Raminder Grover, chief executive of Homebay Residential, part of Jones Lang LaSalle Meghraj, said the luxury sector is clearly picking up and developers are cashing in on this demand by offering even more expensive and exclusive apartments.
Pune based Kumar Builders is planning to build ‘sky villas’ in the Worli area of Mumbai, where the first villa will start from the twelfth floor. In Hyderabad, Dax Properties has sold 65 to 70 villas in its Golf Retreat Project since its launch last month. ‘There are takers from all over the country,’ said a company spokesman.
Another developer, Aditya Housing and Infrastructure Development Corporation, said it has sold 20 villas out of 30 at Empress Park in the Jubilee Hills area of Hyderabad. And Kumar Builders in Puni sold 77 flats within a short span of time in its premium project, 45 Nirvana Hills. The company plans to launch two or three luxury projects in prime localities like Kalyani Nagar and Hadapsar.
Bangalore is also likely to see more luxury projects by developers such as Prestige and Nitesh Estates, as developers have seen good response for the premium products in the past three months.