Rising demand leading to developers of ultra luxury residential projects to tie up with international luxury hospitality or lifestyle brands to create unique and highly differentiated offerings
Amid wide-spread talks of economic slowdown, the trend of having branded residences has been on an upswing in India, with uber- rich resident and non-resident Indians (NRIs) increasingly preferring for designer homes with snob value in tony localities in metros.
In Mumbai alone, close to 3,000 luxury and ultra luxury residential units were sold in the first quarter of this year. Delhi-NCR and Bengaluru also saw sale of 236 and 84 such units during the period, according to data available with JLL India.
“Of late, the property buying preferences of ultra-HNIs (high networth individuals) – both resident Indians and NRIs – have been skewing towards exquisite offerings. They are willing and able to purchase bespoke products selling at heavy premiums. This is very much in line with global trends,” Shajai Jacob, CEO-GCC, Anarcok Property Consultants, told Arabian Business.
The rising demand in this segment has led to developers of ultra luxury residential projects to tie up with international luxury hospitality or lifestyle brands to create unique and highly differentiated offerings.
Panchshil Developers in Pune, Maharashtra, has roped in French product designer Philippe Starck, while Gliteratti Penthouses, also in Pune, has contracted Bollywood icon Shah Rukh Khan’s wife Gauri Khan to provide interior designing for their project in Pimple Nilakh.
Similarly, the Mumbai-based Lodha Developers had tied up with J. Jagger – a former British model and now a jewellery and home designer - for its Fiorenza project in Goregaon, Mumbai and with Armani for another project - World One, also in Mumbai.
Panchshil's Trump Towers has also gone in for tie-up with an international brand for their luxury realty project in Pune.
“Luxury and uber luxury housing projects in India have continued to lure buyers. Factors such as the presence of high net worth individuals, fondness for these properties among the resident and non-resident Indians and attractive pricing have continued to support the market performance so far,” Ramesh Nair, CEO and Country Head- India, JLL, told Arabian Business.
Nair said there were three different kinds of tie ups emerging between luxury brands and real estate companies: Tie ups for designing and architecture, luxury spa and restaurant brands tying up for concierge services and tie ups with sports stars for sports amenities and other services.
“We have observed that from a sales perspective, the tie ups related to sports or extra-curricular amenities have been more successful than the ones around designing and architecture.
“However, going forward, projects will do well when it offers amenities of world repute that resonates with the tastes of the buyer, who has seen the world and aspires to have those in and around his property,” Nair said.
In industry terms, 'luxury' housing is designed as homes costing $560,000 to $700,000.
Executives at leading property consultancies, however, said when it comes to ‘designer’ homes, there is no such price bandwidth.
“The supply in 'limited edition' luxury projects is, by definition, limited and normal market dynamics do not apply. Price tags of $7 million (Rs. 50 crore) and above are not unheard of in this segment,” Jacob said, adding that buyers of such homes generally do not haggle.
“Uber-rich Indians and NRIs park a significant portion of their wealth in real estate assets. The property ‘address’ and the ‘brand’ are extremely important for such a clientele, who are very choosy in selecting their association,” Jacob said.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.