Real estate News India: When it comes to luxury homes — units priced above Rs 5 crore — Bangalore is setting benchmarks to emerge as the country’s top luxury home market, says a report by JLL India, an international property consultancy firm.
Quality of construction, design, ventilation, floor-to- ceiling height, amenities, floor plans, building elevation and configuration aspects are among the factors fuelling Bangalore’s rise to the top, the report says.
Most importantly, pricing of luxury residential properties in the country’s IT capital is seen to be far more reasonable and realistic than Mumbai and NCR, says JLL’s report.
“Luxury properties in Bangalore are 20% to 30% cheaper. While luxury apartments that cost between Rs 6 crore and Rs 30 crore may seem exorbitant, they are in fact very reasonable when compared to the rates going in premium locations of established cities like Delhi and Mumbai,” notes Om Ahuja, CEO-residential services, JLL India.
Citing research data, Ahuja adds: “A luxury apartment in Indiranagar or Koramangala is still an attainable reality with prices ranging from Rs 9,000 to Rs 12,000 per square foot. No other premium locations of other major Indian cities offer such prices in the luxury segment.”
While Bangalore reports sales of close to 100 luxury units — including villas — on a quarterly basis, Mumbai and NCR, in comparison, see only around a dozen such sales.
Data shared by the consultancy firm LJ Hooker shows that Bangalore has around 5,400 luxury units under various stages of construction and planning.
After Mumbai and NCR, Bangalore is the third largest market for luxury property sales and product offerings. It is also the third largest real estate investment hub for high net-worth individuals (HNIs), but tops the list in terms of investments from NRIs looking at settling down in India.
While much of the city’s luxury homes demand is fuelled by millionaires from the IT/ ITeS sectors, the demand is also being driven by Kolkata and Chennai-based HNIs. JLL estimates Bangalore to have over 10,000 dollar millionaires.
In terms of product, JLL reported that luxury residential offerings in Mumbai and NCR fall more or less in the vanilla category when compared to products in Bangalore. “In Mumbai and NCR, location aspects such as sea view or PIN code tend to define the flair and profile of a property far more than the positioning of the product in terms of luxury and design parameters,” says Ahuja.
Demand across all metros for luxury residential products was subdued over three to four financial quarters, but has picked up in the past 60 days, say analysts tracking the real estate sector.
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