With a growing economy and high incomes, Indians are getting attracted to luxury homes and the same applies to the city of Bengaluru. It has seen a spike of 45% in demand for luxury homes that cost more than Rs.1.5 crore as of 2017. While the growth in this segment is higher in Bengaluru compared to any other Indian city, Bengaluru’s luxury home rates are slightly lower in comparison.
The high demand for luxury homes in Bengaluru can be attributed to the following reasons.
High yield locations: Certain areas of the city offer a higher yield on investment such as AECS Layout, Banaswadi, Basavesh, Bellandur, BTM Layout, Horamavu, Hosa Road, Marathahalli, Panathur, Sarjapur Road and Varthur. For instance, projects such as Prestige Park Square located on Bannerghatta Road encourage a luxury lifestyle with well-ventilated apartments, ample space and facilities such as recreational areas and tennis courts. Another example is Concorde Epitome located in the bustling Electronic City Phase II. This development is designed as an oasis from the busy city and offers 2 and 3 BHK luxury apartments and homes.
Young, cosmopolitan population: As millennials enter the workforce with a good education and large disposable incomes, they are investing their money in residential flats in Bangalore. With high job security, availability of easy finance and the inherent drive to invest, youngsters are driving growth in the Bengaluru home market. Moreover, as per a recent survey, the average age of a home buyer has dropped from 40 years to 34 years in the last 10 years. Also, the Garden City’s appeal has led to more millennials in their twenties buying homes as well. This trend is shaping the need for luxury homes to cater to a new audience.
Minimal impact of interest spike: On the whole the housing market has been facing a slowdown owing to inventory pile up in Delhi and Mumbai due to high interest rates, as well as average economic growth. However, defying this trend is the luxury housing market where prices have been steadily appreciating. It has been established by experts from the industry that typically, in the luxury sector investors and home buyers are not affected by an increase in interest rates as they fund their purchases through their own resources.
Large ultra-high net worth segment: Data from Ernst & Young and Kotak Wealth Management indicates that the number of ultra-high individuals in India is set to reach 3,43,000 in 2018–19, triple of 1,17,000, what it was in 2013–14. This sharp rise in demand is reason enough for the increase in the number of luxury residential flats in Bangalore.
Growth of the Indian economy: The Indian economy is poised to grow at the rate of over 7% in the coming years as the West reduces its dependence in China. So, it is anticipated that reasonable wealth creation will take place over the next decade which will positively affect the luxury housing market. Experts are of the opinion that the growth is likely to be twice that of the GDP. This is a great indicator of why the luxury residential flats in Bangalore are in high demand today as people are anticipating growth of the segment.
But finding the right luxury home that meets all your requirements can be a challenge. To simplify it you can get assistance to find the right home, for in-person site visits, for availing a home loan as well as help with documentation through home loans by Bajaj Housing Finance Limited. This one-stop solution can help you take care of all your home-buying concerns.