The real estate investments are considered to be the most efficient way to achieve profitability in the future trajectory. Various reports have shown that the Indian real estate market has seen a significant increase in the demand for commercial real estate properties like the offices and residential properties. The real estate attracted around Rs 43,780 crore investment in the year 2019 and US$ 4 billion from foreign PE between 2015 and Q32019, which in itself is impressive growth. Not only that a report by IBEF has also predicted that the real estate market will grow to Rs 65,000 crore (US$ 9.30 billion) from Rs 12,000 crore (US$ 1.72 billion) in 2019. This growing market has stood firmly against the adverse waves sent by the onset of a pandemic that led the economy to go standstill. While the economy will take a certain amount of time to pick up the lost pace, the industrial sectors like real estate are already up and operational. With the unlocking of the economy after the standstill, various companies are now seeing a relatively slower but steady quarter by quarter growth. According to a real estate major, DLF reported over 98 percent recovery in office rentals in the quarter months of July to September.
Luxurious real estate properties have grown in demand in recent years with the booming global economy. Penthouses are an excellent example of luxury real estate properties that offer a wide range of affluent amenities to the owners and investors. The recreational areas furnish these spacious living quarters, thereby giving you the room to unwind and relax on a Sunday afternoon with your family. Penthouses are a real estate term that is known to originate from France at some point of time during the 14th century. These properties are known to be the symbol of financial status and are not only restricted to the residential areas; penthouses can also be commercial spaces like offices. In recent years, and with the onset of a pandemic, the Indian economy is projected to decline in the foreseeable future that is April 2020 to March 2021. The lockdown has brought domestic, commercial activities to discontinuation and halt, a result of which FocusEconomics panellists have projected the GDP to fall 9.3 per cent in FY 2020, and an increase of 9.2 per cent in the FY 2021. The real estate market of India has seen rapid growth in recent years, and was significantly affected by the onset of the pandemic. But the steady growth after the unlocking of the economic activities is projected to have a notable shift in the future trajectory. The exponential increase of demands for a luxury penthouse is a sign of this growth. Real estate investments are considered to be a secure and safe investment that have profitable returns in the longer run.
Staggering but growing at a steady pace, the real estate sector of India sees development and expansion opportunities. Considered to be a secure investment with profitable returns in the longer run, investments in the real estate sector are growing significantly. But the question remains, why is there a spurt in demand for penthouses in India?
This question can be answered with the three critical indicators, mainly:
- Increased standard of living
The growing economic conditions are bringing in more opportunities for investments in the real estate sector due to the profitable returns. Not only does the demand for luxury penthouses increase as an investment purpose, but also the increased standard of living leads to the growing needs. Metropolitan cities like Mumbai and Delhi, have been witness to this ever-growing demand for luxury penthouses that are also seen as a status symbol. With the growth in financial conditions, the aspiration to score a luxury penthouse is also growing—the attractiveness of the amenities that a penthouse offers, allure the investors to invest in them. Mumbai, for example, is a blooming space for real estate developers as the market for luxury penthouses is increasing.
- Growing financial benefits from luxurious residential real estate properties- high investment capacity, growing economy
Not only are the luxury penthouses a status symbol, but also have financial benefits when invested in the longer run. According to an article by Economic times, the number of ultra-high networth individuals (UHNWIs) are estimated to grow by a massive amount of 73 per cent in the next five years which is almost double the count to 10,354 from 5,986 in the year 2019 as maintained by Knight Frank’s Wealth Report 2020. This increasing number of high net worth individuals has contributed to the growing demands for luxury penthouses in India in recent years. As stated by a report published by the Reserve Bank of India, the gross disposable personal income in India has increased from Rs 17315933 crores in 2018 to Rs 19237943 crores in 2019. This increase has resulted in the growth of investment opportunities in the real estate industry that is encouraging the real estate developers to come up with more luxury penthouses in the significant cities of India.
- Increasing competition to match the international standards of living –
The globalisation has encouraged sharing and thus, the development of more modern, and improved standards of living in developing countries like India. The need to level up the amenities that were once considered a luxury had seen a growing demand for the real estate builders. Luxury penthouses that were seen as an exotic and highest standard of living that was only available overseas are now coming to the Indian real estate market to meet this growing demand. These properties are equipped with the latest design, technology and well furnished detailing. Penthouses also offer recreational and premium amenities that call out as a higher standard of living and denote the financial status of the investor or the owner. Since the individuals who invest in these premium and luxury properties do not require a loan, in most cases, this luxury real estate sector remains unaffected even with the fluctuations in the real estate sector.