Demand For Luxury Apartments Has Picked Up Since The Pandemic, Say Real Estate Industry Executives. (File Photo)

Address to amenities: What to look for when you buy a luxury apartment?

Namrata Kohli | New Delhi

When the Golf Island luxury apartments project was launched in Dwarka, Southwest Delhi, in June 2023, more than 50 percent flats were sold within six months of the launch of the project. Demand still continues and the capital values have appreciated 20-30 per cent since then. When The Anant Raj Corporation (TARC) opened its bookings for the Kailasa project in Central West Delhi’s Kirti Nagar, thirty percent of the inventory got absorbed within 72 hours. What was common in these projects was that they are both upscale lifestyle gated communities, right within the city limits providing an option to residents of Delhi to stay within the capital and not move to the neighbouring suburbs.

Well-heeled homebuyers are not content just with a lifestyle home – they want to live in the city. “I know a lot of middle-aged buyers now preferring to stay within the city and even doing reverse migration from the suburb to the city because the culture and the character of the city is very different from that of the suburbs,” says Amit Goyal, chief executive officer (CEO) of India Sotheby’s International Realty.

“The only flipside is that while the developer manages to get large parcels of land in the suburbs to the tune of 10-15 acre, in the city you can barely manage 2-5 acres. The plot sizes being smaller, therefore the average capital value tends to be higher in gated communities within the city,” he says.

Projects on Offer

The increasing demand for homes that offer a lifestyle is driven by the evolving priorities and preferences of modern homebuyers. However today’s homebuyers want an address within the city limits and well connected to the city centre.

Take the case of TARC Kailasa in the Central West Delhi at Kirti Nagar. Built on their erstwhile plot of land of 6 acres of a retail mall, The Anant Raj Group (TARC) is coming up with 400 plus apartments over an area of 1.7 million sq ft. The three-bedroom units of size 3,500 sq ft cost Rs 9 Cr while the four-bedroom units of size 4,200 sq ft cost approx. Rs 12 Cr and majority of the units (60 percent) are 4BHK. Says Amar Sarin, CEO & Managing Director, TARC, “For the longest time, this side of the city has been dominated by kothi culture and low-rise living. We decided to build ultra luxury residences on this side of the city as no one was making bigger sized apartments. In fact, the existing markets’ bigger sizes is where our smallest sizes start. With Kailasa, we are taking the residents towards hi-rise living with 7 tier security, , all weatherproof pool, state-of-the-art amenities, private lifts and a top-rated design by Singapore’s Andy Fisher Workshop who has created homes with high ceilings. We have excavated the basements and Arabian construction Company (ACC) has started work at the site.” Their other project TARC Tripundra at Bijwasan in Southwest Delhi has seen good traction with demand being mainly driven by the end users.

Unity group is about to give possession for its luxury inventory of 4-6 BHK and Sky Villas at ‘Unity the Amaryllis’ soon in Central West Delhi. Sizes range from 2,618 sq ft to 12,990 sq ft and the cost varies from Rs 5.85 Cr and goes up to 30 Cr.

The trend of luxury gated community launches is not just restricted to Delhi but is seen pan India- in all top tier cities of Mumbai, Chennai, Bengaluru (see Price chart). In the case of TVS Emerald Luxor at Annanagar Chennai, the project has 4 BHK and duplex apartments starting at Rs 4.05 Cr and goes all the way upto 7 Cr. Luxury apartments of 3, 4, 5 BHK sizes in Nahar Jasoda project in Central Chennai’s cost Rs 2.98 Cr to Rs 5.56 Cr. Marvellous by Urban Tree launched 2, 3, 4 BHK apartments in T Nagar, Chennai, will sell for Rs 2.65 Cr to Rs 6.8 Cr when the project is completed in September 2025. In South Bengaluru, Purva Sparkling Springs is a new project of 3/4 BHK villas at Bannerghatta Road.

South Mumbai has several projects under construction. Mahalaxmi in South Mumbai saw the recent launch of 2, 3, 4 BHK apartments by Piramal Mahalaxmi with units costing between Rs 3.5 Cr and Rs 12.05 Cr. In Worli, Lodha Adrina is launching 2, 3 BHK apartments costing between Rs 6.07 and Rs 8.42 Cr. Mumbai’s Lower Parel area is seeing the launch of new luxury projects such as Arihant Towers.

“There is an emerging trend where buyers are increasingly looking to upgrade their living spaces, moving from the entry and mid segments to the luxury category. Mumbai’s real estate landscape is primarily driven by end-users who express a preference for high-end amenities, exclusive designs, and prime locations,” says Rakesh Setia, president- sales and marketing, Rustomjee Group, which just launched a project in Juhu, South Mumbai.

“This heightened interest extends to CXOs and high-net-worth individuals in pursuit of luxurious residential apartments. However, another trend observed is where individuals invest in under-construction projects to maximise value. Homebuyers are displaying patience in building up their funds or are willing to stretch their budgets,” he says.

Luxury residential projects in cities are attracting mostly end users. Investors are limited to 15 per cent of the clientele because they typically prefer smaller properties and bigger return on investments. In luxury projects, buyers have to pay Rs 3 crore in three months – a condition that is not is not feasible for investors.

All these projects have bigger sized homes, relative to the standard size in the locality they operate in. “If we are to consider residential trends in 2023, most cities continued to see demand for bigger homes – a trend that gained much popularity since the pandemic”, says Anuj Puri, Chairman – ANAROCK Group. “And, despite life returning to complete normalcy from the second half of 2022, demand for bigger size homes continued. Hence, developers also launched large-size homes. Thus, one of the key features of luxury and ultra-luxury homes is its (big) size. Another factor was that most of these new launches were by large and listed developers who anyway charge a premium for their offerings and interestingly, buyers are willing to pay a premium because their preferences are heavily towards branded products. More so, besides the regular amenities including well-equipped clubhouse, swimming pool, etc. many of these high-end projects offer other features like smart technology, concierge services, among others. This definitely increases their value. Above all, location of the property also defines the price of the respective project.”

What Should A Buyer Know

 How to get good value when you buy in this segment? Does the value come from interiors and facilities, or does it come from location? All in all, builder-type, location, size, and amenities together increase the cost of the property and put it in the ultra-luxury bracket.

What to check while buying a luxury house? According to Amit Agarwal founder & CEO, “There are four things to check. One, connectivity to key business districts and entertainment hubs from the property’s location. Two, exploration of upcoming developments in the surrounding area that may impact the property’s value. Three, availability of luxury amenities which could include green spaces, infinity pool, sports hall, jogging and cycling tracks, reading room etc. Four, developer’s track record to ensure high construction quality, luxurious interior and exterior features, top-notch amenities, and timely project delivery.”

Once you have zeroed in the project and the property, you need to find out the most suitable payment plan. Currently developers offer various payment plans such as traditional down payment, construction-linked, and time-linked plans. “A relatively recent and popular structure gaining preference among buyers is the “no EMI till possession” or Subvention Scheme, says NoBroker’s Agarwal. In this scheme, buyers make an initial payment of only 20% of the property and commencement of EMIs occurs only after possession. Prior to possession, the developer covers the EMIs. It benefits the buyers in financial planning, as there are no EMIs until possession. The builder covers EMIs during construction, ensuring timely project completion. With only a 20% down payment, there’s potential for better appreciation value when selling the property after completion.

Finally, as someone said – “The best investment on earth is earth.” People are consolidating all their assets (financial, stocks, property) to buy the best version of homes they can possibly afford. Purchased with common sense, paid for in full, and managed with reasonable care, home continues to remain the best investment in the world for physical and mental well-being.

Price chart

The table below lists down latest launches in the premium to luxury residential housing segment across India’s top tier cities

City Project Price (Crores)
Delhi TARC Kailasa, Kirti Nagar  3, 4 BHK Apartment ₹ 9 Cr onwards
Delhi Golf Island, Dwarka 4 BHK Apartment ₹ 6 Cr onwards
Delhi TARC Tripundra, Bijwasan 3, 4 BHK Apartment ₹ 5.5 Cr onwards
Delhi DLF Midtown, Moti Nagar 2,3,4 BHK Flats ₹ 3.25 – 7.87 Cr
Delhi Unity the Amaryllis 4/5 BHK ₹ 5.85 – 11 Cr
Mumbai Arihant Towers By MJ Shah Lower Parel, Mumbai South 2, 3 BHK Apartment ₹ 3.24 – 4.86 Cr
Mumbai Lodha Divino Matunga, Mumbai South 2, 3, 4 BHK Apartment ₹ 3.96 – 9.03 Cr
Mumbai Rustomjee Ashiana- Juhu, Mumbai ₹ 10 Cr – 16Cr
Chennai TVS Emerald Luxor, (Annanagar Chennai), 4BHK/Duplex apartments ₹ 4.05-7 Cr
Bengaluru Sattva La Vita Hennur, Bangalore North 4 BHK Villa ₹ 5.32 – 5.34 Cr
Bengaluru Purva Sparkling Springs Bannerghatta Road, Bangalore South 3, 4 BHK Villa ₹ 4.05 – 8.46 Cr

Source: Market Research

Source: Business Standard

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