Track2Realty Exclusive: Crème de la crème real estate project for the upscale and upmarket buyers is an ambition that is driving the developers across the country. It seems the Indian real estate has woken up to the reality that the destination of brand positioning is ‘luxury’ and as Track2Realty finds, in this rat race the term is so over-used and abused that it has lost its relevance. From high-end condominiums to affordable, the tag of luxury seems to be the biggest brand driver for the sector.
In a competitive real estate market where the housing shortage may be in the affordable or mid segment apartments, luxury projects are on a roll. It seems every developer in the last few years has been on luxury launches spree, even if the company has been traditionally known for slum rehabilitation.
This may defy the conventional demand-supply wisdom of economics, but the fact of the matter is that luxury projects are seen as flagship for brand value of developers, hence adding premium to their overall project portfolio. To add to it, profit per apartment is much higher in this segment and investors with deep pockets seem to bet over luxury projects for better appreciation in the long term.
This raises a fundamental question whether Indian real estate, of late, is obsessed with luxury. If the luxury launches in the last few years by developers across the country, often repositioning themselves into this segment, is any indication, it seems this obsession has made the term ‘luxury’ as an over used and abused term as well. From the top of the demand pyramid to newly coined term ‘affordable luxury’ it is made to believe the Indian homes buyers want nothing less than luxury.
DLF which has to its credit the development of luxury projects in Gurgaon with the philosophy of ‘Live, Work * Play’ points out that luxury has to be holistic in its essence. One can not enjoy luxury living by just living in a luxury apartment and working in a depleted old building as office. Nor will MNCs prefer that kind of a destination. DLF spokesperson Sanjey Roy, however, maintains that real estate, like any other business, is demand driven and there is nothing like luxury projects being over supplied in the market.
“Though I agree that the term ‘luxury’ is being used very liberally nowadays, yet buyers in this segment are so discerning and demanding that a seasoned developer can not afford to fool around. You can not have some décor around a low cost project and call it affordable luxury. This segment of housing is more competitive than any other segment. Moreover, since luxury is about overall ambience and not just a costly & fancy apartment, it has to have connection with the location. A location with no thriving economic activity and prosperous habitation can not afford to have luxury living,” says Roy.
…to be continued
