For professionals, under the ultra High Net-worth Individual (HNI) strata, a readymade villa or an apartment is the most desirable form of luxury home, as per the CRISIL-Kotak Bank report. Inheriting ultra HNIs, at the other end, prefer to build customised villas on their own piece of land.
However, when it comes to the most sought-after factors for buying or developing a luxury home, it is “location” which is common for both the types of ultra HNIs. After location, interiors, size, exclusivity, architecture and automation come into picture. Among these seven factors, price is the last consideration for these high-flying individuals.
What is the definition of ultra HNIs?
But is it really a big market in India? How many households are there in this category? The CRISIL-Kotak report expects the number of ultra high net-worth households (HNH) in India to triple to over 3.29 lakh households, in the next five years. It has been estimated that the collective net-worth of these HNHs will touch the levels of Rs 380 trillion (Rs 1 trillion is equal to Rs 1 lakh crore) in 2017-18 from Rs 86 trillion registered in 2012-13.
But what is the definition of an ultra HNH? It is the households which have a minimum average net-worth of Rs 25 crore accumulated over the past 10 years. This amount of wealth is further mapped to a minimum income of Rs 3.5-4 crore.
According to Ammul Goel , director, Pushpganga Ventures ,Pune “The luxury homes segment in India is growing at an annual rate of over 35 per cent, on an average.” If experts are to be believed, the segment remains relatively less-worried about the economic environment and their buying decisions are more of personal preferences than financial fitment.
What do they look for within a home?
Personal plunge pool and mini theatre are the top priorities for ultra-HNHs in India. Homes, equipped with personal gyms and sauna, add to the appeal. Within a home, exclusivity remains at the top of the mind.
“To meet the taste and requirement of HNIs, the trend of introducing ‘branded homes’ is fast gaining prominence,” says RK Arora, chairman and managing director, Supertech. These branded homes are constructed by leading real estate developers in close collaboration with architects and companies who have specialisation in the luxury homes segment.
Are they considering foreign locations also? Ultra-HNIs, who regularly travel to specific foreign locations, like to buy second homes there. Industry reports indicate that Dubai, Singapore and Malaysia are among the preferred Asian countries Indian HNIs like to buy residential real estate. In the United States, New York is the preferred destination while in the United Kingdom, real estate transactions from Indians are mainly concentrated in and around London.
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