The impact of COVID-19 has been severe in several businesses. The earlier concerns of economic slowdown and uncertainties have however subsided to a great extent. While the first half of 2020 saw sales drop to 49% in the top seven cities of India’s realty sector, the market bounced back, mainly owing to major changes in the pandemic era, especially in the domain of larger and luxurious single-family homes. The pandemic is also thought to be responsible for the demand of luxurious flats in Kolkata. Furthermore, with the uncertainty of how long the pandemic will prevail and what lies ahead, offers for properties in Kolkata have escalated to a new high, a trend that was previously valid only as festive offers. If not in the form of clear cut lucrative discounts, buyers can avail of easy payment deals, complimentary car parking options, among others. It is therefore the best time for buying flats in Kolkata as the industry is looking at some of the lowest prices, along with various options with location and budget bandwidths. Furthermore, there is also the possibility to buy ready to move in flats in Kolkata at prices so low which were previously witnessed only with under-construction projects.
Trends in Luxury Real Estate Kolkata
2020 witnessed some interesting trends in the realty sector that are reshaping the luxury residential segment in India. Let’s get to know some of the emerging luxury trends that drove the real estate market in 2020:
The fast-changing meaning of luxury homes
Traditionally, the luxury segment in the realty sector was limited to a prime location, good social infrastructure, and amenities. In today’s age of modern smart homes, luxury housing is not limited to swimming pools and clubs in the society, real estate developers are offering state-of-the-art technology, Internet of Things (IoT), impressive and sustainable architectural designs to stand out in the market. Voice and touch-enabled automated homes, smart mood lighting, are steadily becoming an essential part of luxury living.
The new normal and changing priorities
How many of us carried a hand sanitizer every time we stepped out of the house before? Today, we cannot imagine leaving the house without a mask, a sanitizer, a shield, and perhaps even gloves. Health, family, and safety have topped the list of priorities for everyone this year; a home is just the place where one can find such intangible priorities under one roof, and what if you can find the best of it?
Luxury flats in Kolkata align with such intangible priorities; this has positively attributed to its demand in the real estate sector. In high demand are properties in Kolkata that are close to nature, serenity, and safety. With people spending more time at home, the affluent classes are looking for luxurious flats in Kolkata, or duplex flats in Kolkata with amenities like rec rooms, or flex spaces, swimming pools, and home gyms.
In today’s digital age, homebuyers are making complete use of cutting-edge technological solutions to safety. With the use of augmented reality, virtual reality, and smart meters, home-buyers are adopting transformative evolutions such as biometric authorisation of the main door, gas leak sensors in the kitchen, Wi-Fi router with a panic button, among others.
In general, it is one of the best times for buying flats in Kolkata. With people forced to work from home, demand for home office spaces has witnessed a new high. Families with children who were learning abroad are returning home. With fewer business openings and limited travel schedules, many are also taking early retirements. The new normal has changed people’s spending habits, and buyers are keen to invest in a home of their own.
To make up for the drop in sales in the first half of the year, real estate developers in Kolkata with unsold inventory are struggling with a loss on sale margins, such projects are now available with friendlier tax options, and less GST.
This trend has surged the demand for luxurious flats in Kolkata as families are looking for bigger spaces to accommodate their families’ current needs. Properties in Kolkata’s prime location with higher USP have gained greater market value; flats in Kolkata Rajarhat, flats in Kolkata Salt Lake, and ready to move flats in Kolkata new town have thus witnessed a rise in demand.
The contribution of the NRIs and HNIs to the growth of luxury homes
Kolkata, including other top cities in India like Chennai, Pune, Bengaluru, Mumbai Capital Region, and NCR launched over 2.3 lakh new housing units in 2019, out of which 10 percent i.e. nearly 23,000 units belonged to the luxury and ultra-luxury segment. The demand for luxury housing in India can be attributed to two main factors— dropping prices of properties, and an increase in the exchange rate of the US dollar, which has in return led to a higher purchasing power of NRIs.
NRIs are usually interested in investing in residential properties in Kolkata for either moving-in with families, as a re-investment opportunity, or for renting out to locals for good returns. Overseas buyers are pumping money into luxurious flats in Kolkata and spacious 4 bhk flats in Kolkata partly to stand out from general housing units. The demand for high-end luxury houses in posh locations in Kolkata has risen. The main factor is the location— be its proximity to nature in Alipore, or flats in Kolkata south Bhawanipore with its good civic amenities, and plush villas and bungalows, or Ballygunge- the most preferred location for housing properties in Kolkata among High Net-Worth Individuals (HNIs) and NRIs. These ultra net worth individuals are investing in luxury housing units, including duplex flats in Kolkata, flats in Kolkata near the airport, penthouses, villas, and bungalows in high-end localities of Park Street which have become hot cakes in the city’s realty market.
Furthermore, the inward remittances by NRIs especially those settled in the US, Canada, the UK, the Middle East, and some of the Southeast Asian countries have increased in the past couple of years. These remittances are used into real estate, a fair share of which is taken by sizeable investments made into luxury residences.
Luxurious flats in Kolkata and the brand value of real estate developers
According to a study published in 2019, India has 2,697 ultra net worth individuals, each having net worth of at least $30 million. Between 2013 and 2018, the number of such individuals has grown by 118 percent, and the growth is expected to increase by 37 percent between 2019 and 2024.
The surge of the luxury segment in the realty sector is mainly attributed to the increase in the number of HNIs looking to invest in ultra-luxury housing, with real estate developers catering to the demand for high-end luxury houses.
One of the most significant driving factors fostering the demand for luxury homes is— location. The need to develop luxury homes in attractive locales is consequently augmenting real estate micro-markets in previously undiscovered territories of the city. Hubs of luxury residential housing units are mushrooming in Central and North areas of Kolkata.
Another prime factor among consumers buying flats in Kolkata is the brand value of developers into luxury residential units. Real estate developers are hence roping in high-end and internationally acclaimed architects and designers to align with the aesthetic demands of the buyers interested in luxurious flats in Kolkata.
Furthermore, buyers today are conscious about minimizing carbon footprint. Several buyers today are concerned about at least one environmental issue thus preferring green living and sustainable housing. Best flats in Kolkata are using solar water heating, high-efficiency windows, biomass, and insulation in walls, floors, ceilings, and generate power through hydropower and wind power.
To maintain brand value, high-end properties at Kolkata are keeping up with the demands of ultra-luxury residential homes such as sustainable quality of construction, the social profile of neighborhood, geographic locality, ergonomic designs, state-of-the-art fittings for kitchens and washrooms, including tiles and other flooring material.
Another emerging trend in the real estate sector is that of brand tie-ups for marketing. To cater to the demands of smart homes, several large scale real estate developers are joining hands with luxury and gourmet brands to keep up with the demands of sophisticated interiors and home appliances.
Brand tie-ups are helping developers to make a mark in the fiercely competitive real estate market and are setting them a notch higher than non-branded real estate projects. The trend of developers collaborating with celebrities is also picking up pace. These tie-ups range in various segments of luxury living such as concierge services, sports amenities, ultra-luxury designs, etc. Such associations are in turn increasing the brand value of the developers, and enticing consumers to invest in luxurious flats in Kolkata.
Asia is ranked as one of the prime developing regions in the world, and the number of high net worth individuals in India is expected to increase over the next decade. As one of the premier luxury real estate developers in the city, we, at PS Group have endeavored to deliver aesthetically designed luxurious flats in Kolkata at the best locales across the city in record time. Over the last three decades, we have developed a legacy around constructing high-end projects and homes that resemble five-star hotels and offer the very best of modern comforts to our globe-trotting residents. If you’re looking to invest in luxurious flats in Kolkata, get in touch with our sales team today!
You can also refer to our blog “Flats in Kolkata: A Buying Guide for Luxury, Premium, and Budgeted Buyers” and “Real estate in India: Trends to look out for in 2021“
There are a few qualities which a luxury home needs to have in order for it to be considered luxurious, irrespective of the builder or the city it is built in. A luxury home needs to be spacious, equipped with advanced technology, well planned, and built in an optimum location ideal for most of the needs of a homeowner. A luxury home also tends to come with several advanced amenities for its residents.
A luxury home is defined by a few standard qualities such as-
Spaciousness- Luxury homes usually have high ceilings and ample space for the residents
Advanced technology- such as smart phone controlled lighting, air-conditioning, thermostat. Security features such as smart lock systems, safety alarms, and CCTV cameras provide thorough security to its residents.
Advanced amenities- Luxury homes provide a wide range of advanced amenities to its residents such as- multiple house courts, lounges, luxury pools, patios, spacious walkways, yoga and meditation zones, exotic gardens amongst others
Optimal location- A luxury home is located in an optimal location which enjoys great connectivity and is close to most of the important spots in the locality. In several cases luxury homes also enjoy beautiful, breathtaking views.