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Twenty-three has been a very good year for the ultra-rich in India. Sotheby’s International Realty’s Luxury Outlook 2024 makes this clear, as 71% of India’s high- and ultra-high-net-worth people stated that they plan to purchase luxury real estate in the upcoming 12 to 24 months.
Rich Indians’ key motivation for wanting luxury real estate is capital appreciation. According to Luxury Outlook 2024, capital appreciation is the primary reason for 44% of people’s desire to invest in luxury real estate.
The second major factor is a desire to better one’s lifestyle. Of the respondents, 23% said they wanted to purchase luxury real estate, such as vacation homes, farmhouses, and farmland, in order to do so in line with their growing income.
Driving Forces Behind Luxury Real Estate Investments In India
The next major drivers of luxury real estate investment are income creation and building assets for the next generation. According to Sotheby’s International Realty’s annual study, ultra-rich Indians are extremely positive about the country’s economic future and trajectory through 2024.
Seventy-nine percent of respondents expressed confidence in India’s economy’s present direction, up from fifty-nine percent the previous year. The considerable decrease in the transaction time in a high-end real estate transaction can be attributed in large part to this optimism.
Ashwin Chadha, CEO of India Sotheby’s International Realty, says, “What we have observed as a trend is that what used to really take 12 to 18 months to conclude the purchase of a particular real estate, that time period has really got crunched.” “Transactions are now being completed in as little as one month,” he continues.
40% Surge In Luxury Real Estate Prices: What Lies Ahead?
The Luxury Outlook research states that during the past 24 months, prices for luxury real estate have increased by around 40%. Buyer optimism is still high, though, as they anticipate an RBI interest rate cut in 2024.
In a statement, Amit Goyal, managing director of India Sotheby’s International Realty, stated that the nation’s record-breaking home sales figures in 2023 and its all-time high stock market are evidence of the growing economic momentum. In the next 12 to 24 months, he believes, the upper end of the real estate market would gain the most.
According to Goldman Sachs Group Inc., the number of members of the wealthy class is predicted to nearly double to 100 million within three years. India’s ultrawealthy population is expanding. The number of ultra-rich people has increased due to the thriving start-up scene and the rise in unicorns, says Goyal.
Optimism Soars: Ultra-Rich Indians Bullish on Economic Future
According to the poll, 83 percent of the wealthy in India possess many opulent homes. Holiday houses, at 25%, are the second most popular real estate investment among the ultra-rich, behind commercial property, which accounts for around 34% of all assets.
Goa’s Allure: The Preferred Destination for Ultra-Rich Vacation Homes
Farmhouses (20%) and agricultural land (21%) are the next big real estate investments for India’s affluent. Goa continues to be the most popular place to purchase a vacation property, with over 35% of affluent people choosing to do so.
Goa’s beautiful beaches, hills, and way of life are what draw most people to the area, but investors and individuals are also drawn to vacation houses because of their high return on investment.
“Goa began with the achievement of the second home vacation house goal. Goa’s holiday property prices have increased due to increased demand. These days, a lot of individuals invest in it for return components as well as end-use vacation houses. According to Chadha, Goa has provided returns in the neighbourhood of 70 to 80 percent throughout the last 18 months.