Gurgaon is one of the major corporate hubs in the country with presence of nearly 500 MNCs and even higher number of Indian corporate giants. This is also one of the reasons why Gurgaon attracts a lot of expat population, who prefer Gurgaon because it offers them a best-in-class lifestyle equation:
The luxury homes preferred by HNIs in Gurgaon are spacious apartments with ample daylight exposure, high end fit-outs, full power backup, well equipped swimming pools, gyms, library facilities, etc. There is no shortage of such homes. As a rule, luxury developers in Gurgaon have pulled out all the stops in outfitting their offerings with world-class interiors and amenities. True luxury in this market does not support half measures, with the target clientele being HNIs who have travelled the world and expect the best.
Many developers in Gurgaon are taking no chances at all with the aesthetics of their high-end offerings, and have tied up with globally reputed design firms to provide the edge-winning flourish to their projects. Some examples of such projects are:
Returns On Investment – A More Sombre Story
For all the positives that can be highlighted about Gurgaon’s luxury homes market, the fact is that the capital values appreciation trend in Gurgaon has in fact slowed down considerably. From a remarkable appreciation high of 17.8% y-o-y in 2011-2012, the trend tapered down drastically to 3.7% y-o-y in 2012-2013 and declined further to 1.1% y-o-y in 2013-2014.
At the current point in 2015, luxury capital value appreciation in Gurgaon remains at this point. Capital values for luxury apartments average at around Rs. 11,425 per sq. ft., though this figure applies only to actively selling projects and is not representative of individual projects which are sold out. Capital values three years ago ranged between Rs. 10,900-11,300/sq.ft.
Though there is not much to be currently said for Gurgaon in terms of ROI based on capital values growth, demand for luxury homes remains healthy. From our current market readings, buyers are not looking so much at appreciation as on the opportunity to secure luxury homes in Delhi NCR’s most glamourous, best-connected business hub.
Also, a significant amount of the demand for luxury homes in Gurgaon comes from investors geared towards rental income. Many high-end apartment seekers prefer taking uber luxury homes on rent over outright purchase. Gurgaon has, in fact, emerged as a well-defined market for investors focused on luxury homes, which accounts for the steady supply of rental options available in the most desired locations. This, despite the fact that luxury rental values in Gurgaon also underwent a correction of around 11% y-o-y in 2012-13, thereafter seeing only a marginal recovery of less than 1%.
In the future, Gurgaon’s luxury real estate market is expected to pick up momentum on account of:
Authored by Santhosh Kumar, CEO – Operations & International Director, JLL India
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