The Great Divide: Luxury Housing Booms as Middle Class Struggles with Affordability Crisis
As luxury housing sales soar, middle-class homebuyers are finding it increasingly difficult to own a home. What's driving this divide and can it be bridged?
Luxury HousingMiddle ClassAffordability CrisisReal EstateIndiaReal Estate MumbaiAug 03, 2024
In Delhi-NCR, realty major DLF sold all 795 apartments for Rs 5,590 crore within three days of the launch of its new luxury housing project in Gurugram in May. The new project, DLF Privana West, is spread over 12.57-acre comprising 795 apartments.
Earlier this year, the company had sold 1,113 luxury apartments in Gurugram for Rs 7,200 crore within three days of the launch of its project DLF Privana South, which is spread over 25-acres.
Lodha Ciel and Lodha Malabar in Mumbai cost Rs 35 crore and Rs 125 crore approximately. Isprava Group properties in Goa, Alibaug, the Nilgiris, and Kasauli typically start from Rs 7 crore and go up to Rs 45 crore.
Viceroy Privé, a stand-alone signature residential tower in Thakur Village, Kandivali East, designed for 61 bespoke 4BHK apartments and 5BHK duplexes priced at Rs 8 crore onwards.
Aaradhya Avaan by MICL Group, an upcoming project in Tardeo, offers a two-lane bowling alley, arcade, hammam bath, Vichy shower, escape zone, café, guest rooms, steam room, sports lounge, and card table. A 3BHK here is roughly priced at Rs 9 crore.
According to a comprehensive report by Knight Frank India, luxury apartments in Delhi-NCR are characterised by premium amenities, including landscaped gardens, top-tier security systems, concierge services, and opulent finishes. Luxury apartments in Delhi-NCR are priced at a premium, typically ranging from Rs 5 crore to Rs 20 crore.
Ultra-luxury apartments boast high-end designer interiors, private elevators, panoramic city views, and amenities tailored to the whims of the affluent. Prices for ultra-luxury apartments in Delhi-NCR soar beyond the Rs 20-crore mark.
Premium apartments strike a balance between luxury and affordability. These residences offer modern amenities, well-designed living spaces, and convenient urban living at relatively more accessible price points, typically range from Rs 1 crore to Rs 5 crore in Delhi-NCR.
However, the growing demand for luxury housing has led to a divide between the haves and the have-nots. Middle-class homebuyers are finding it increasingly difficult to own a home, with prices soaring beyond their reach.
According to Abhishek Bhadra, Head of Research at MagicBricks, the crucial role of infrastructure development regarding the affordable housing crisis cannot be overstated. He cites the example of the Yamuna Expressway in Noida, which has significantly enhanced connectivity and reduced travel times between cities.
As Abhishek Gupta from CRE Matrix points out, “The problem with Indian real estate is that it's limited to seven metro cities Mumbai, Delhi, Pune, Bengaluru, Chennai, Kolkata and Ahmedabad,” he explains. We need more metro cities to alleviate pressure on existing ones.”
Indeed, addressing the middle-income housing issue could include measures such as redefining affordability, streamlining approvals, and providing incentives for developers to build more mid-range housing.
At the individual level, middle-income homebuyers need to become more proactive in their house-hunting process. As Zaineb and Hussain discovered, “There is a suitable home for everyone, and resale properties are always an option. For new constructions, many payment schemes are available, such as paying the initial booking amount and the rest after possession.\
Frequently Asked Questions
What is driving the demand for luxury housing in India?
The growing demand for luxury housing in India is driven by increasing disposable incomes, urbanization, and a desire for premium amenities and living spaces.
What is the price range for luxury apartments in Delhi-NCR?
Luxury apartments in Delhi-NCR are priced at a premium, typically ranging from Rs 5 crore to Rs 20 crore.
What is the difference between luxury and ultra-luxury apartments?
Ultra-luxury apartments boast high-end designer interiors, private elevators, panoramic city views, and amenities tailored to the whims of the affluent, while luxury apartments offer premium amenities and finishes at a lower price point.
How can middle-class homebuyers afford a home in the current market?
Middle-class homebuyers can consider resale properties, payment schemes, and exploring options outside of metro cities to afford a home.
What can be done to address the affordable housing crisis in India?
Measures such as redefining affordability, streamlining approvals, and providing incentives for developers to build more mid-range housing can help address the affordable housing crisis in India.
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