Mr. Bhavik Bhandari, CSMO, Ashwin Sheth Group
The world of luxury real estate in India is undergoing a profound transformation, fuelled by a paradigm shift in societal norms and the growing confidence of NRI’s in the Indian real estate market. A burgeoning economy, bolstered by progressive policy reforms and significant infrastructural development, has positioned India as a magnet for global real estate investment. NRI investments have contributed up to 17% of overall primary sales, and this is expected to reach 20% by 2025.
Amidst an influx of more discerning buyers, luxury is no longer merely about opulent spaces, but about crafting an experience that resonates with global sensibilities. The affluent consumers of today, including NRIs, seek a comprehensive experience that transcends basic aesthetics. This makes it incumbent on developers to focus on features that holistically enhance occupants’ quality of life, while also providing unprecedented convenience and comfort. This upswing in NRI participation in primary sales stands as a testament to the sector’s transparency, stability, and the wealth of opportunities that it offers. These factors serve to reshape perspectives of the market, fuelling demand.
Integration of smart home technology
Smart homes have evolved far beyond being a novelty, representing a fusion of cutting-edge technologies designed to enhance the quality of life. One significant trend in this area is the seamless integration of smart features into everyday living. Picture a home where AI algorithms monitor your daily habits and adjust settings accordingly. From automated security systems to state-of-the-art entertainment hubs and energy-efficient solutions, these innovations not only enhance the functionality of the living space but also help streamline everyday tasks and elevate the overall living experience to unprecedented new heights.
Cultural sensitivity
Cultural sensitivity is another important factor that developers consider while catering to the NRI segment. Understanding different cultural origins and incorporating elements of Vastu Shastra in architectural principles enables developers to create environments that appeal to their sensibilities and foster a sense of belonging. Furthermore, the demand for senior living real estate developments is increasing, responding to the growing number of elderly NRIs seeking comfort and fostering a sense of belonging in their home country.
Sustainability
NRIs are increasingly turning their attention to sustainable real estate projects in India. This alignment with environmentally conscious investments underscores their commitment to ethical and forward-thinking development. To cater to this demand, developers are strengthening their focus on ESG, helping the sector become sustainable and carbon-neutral by 2050. This endeavour encompasses efforts such as sustainable design, conservation of natural resources, adoption of greener construction technologies, water optimisation, solar energy usage, composting, and water harvesting. To encourage environmentally responsible construction practices, the government has implemented policies offering tax benefits to the developers of ‘Leadership in Energy and Environmental Design’ (LEED)-certified buildings. This enables developers to claim up to 100% depreciation on green building assets, including solar panels, rainwater harvesting systems, and waste management systems.
Use of digital platforms
The use of digital platforms for real estate investment is becoming a standard practice among NRIs. Online real estate portals and fractional ownership platforms are among the digital mediums that simplify the investment process, making it more accessible and convenient. The adoption of blockchain-based marketplaces and non-fungible tokens (NFTs) for real estate investments is also indicative of the growing tech-savviness among NRI investors.
Looking Ahead
The growing demand for ultra-luxury real estate in India underscores the refined preferences of the NRI community. Cities such as Delhi-NCR, Mumbai, and Bangalore have emerged as prime destinations for Uber luxury real estate investments, attracting a significant share of NRI Investments. According to Knight Frank Wealth Report 2024, Mumbai is now among the top 10 luxury residential markets in the world. The report further highlights, between 2023 and 2028, India will witness the highest growth for any country in the number of ultra-high net worth individuals (UHNWIs), with a net worth of $30 million or more.
Developers are reshaping the concept of luxury living by integrating advanced technologies, honouring cultural intricacies, and offering unmatched experiences tailored to NRI sensibilities.
