When it comes to branded residences, people are not only investing in a home, but also making a statement about a high-end lifestyle.
Luxury has a new face in 21 st century India. If you create a brand that people trust, they are willing to pay for it. This is particularly true in the case of luxury homes. To understand why builders and buyers are investing in luxury projects when the market is bearish, one has to step back and reflect on the motivations that impact the human psyche.
For most people, a home is a one time purchase, at least within the medium terms.
Property does not depreciate in Mumbai.
Unlike other commodities, real estate seems dearer because of the massive population and high demand.
Investment in property is considered safe and lucrative, and buyers are confident that they will get good returns.
Today, people don’t invest only in a ‘home’ only in a ‘home’. They invest in a ‘lifestyle’ through their living space.
A luxury home promises the high-end consumer lifestyle that is recession-proof in the long run.
Such properties typically come with expensive and lavishs amenities and make a statement about those who occupy them.
The target consumer for these homes are ‘economic downturn resistant.’ They have has a safeguard margin to indulge in their desires, and are therefore wiling to shell out the high costs involved. In contrast, lower income groups, with a lower safeguard capacity, are more likely to delay the purchase of their dream home during recessionary time. Hence builders are cautious about investing in lower priced homes, as the market for such homes is unpredictable when the economy is bearish.