News: More than 70% respondents reported increased demand for luxury property at the end of 2020: Survey-08-03-2021
Synopsis
According to the United States-headquartered company’s Luxury Outlook 2021, India is on the fourth slot in terms of numbers of adults worth $50 million or more per region, followed by the US, China and Germany.
More than 70% respondents of a global survey by Sotheby’s International Realty reported increased demand for luxury property at the end of 2020 while 63% agents associated with it said they expected prices of luxury homes to rise over the next three years. According to the United Statesheadquartered company’s Luxury Outlook 2021, India is on the fourth slot in terms of numbers of adults worth $50 million or more per region, followed by the US, China and Germany. “With the work from home revolution, the value of a home has found new meaning. There has been a strong resurgence in sales. Transactions in India's luxury residences have crossed pre-Covid-19 volumes. The strongest uptake has been in prime and elite locations of Delhi, Mumbai and Kolkata,” said Amit Goyal, CEO, India Sotheby’s International Realty.
According to the survey, in which agents from India also participated, onethird of Sotheby’s agents expect interest of foreign buyers to increase in the rst half of 2021. The APAC region was the most bullish on increased foreign buyer activity, said the report. “A distinct trend of 2020 has been a renewed demand for holiday homes in beach and hill destinations like Goa, Dehradun and Alibaugh. Spacious homes in beautiful destinations, at a drivable distance from gateway cities, have been the most sought-after,” said Goyal.
The report said that luxury consumers from a handful of wealthy markets will continue to have an outsized impact on the market for trophy homes, or those with a selling price of more than $10 million. “Since the onset of the pandemic there has been a stark jump in demand for gated communities especially, luxury condominiums. Buyers whose nancial condition and lifestyle remained unaected are looking at upgrading from private bungalows to high-rise condominiums. The COVID-19 has also reinforced the signicance of spacious homes for indulgent living and as a stable investment,” said Karan Kumar, CMO, DLF Ltd. As of mid-2020, there were about 175,000 adults worth $50 million or more, according to Credit Suisse's latest Global Wealth Report published in the fourth quarter of 2020. Nations that recorded the highest number of ultra-high-net-worth individuals (which Credit Suisse categorises as adults with wealth greater than $50 million) as of mid-2020 were the US, with an estimated 89,600 adults; China, with 22,400; Germany, with 6,700; India, with nearly 4,700; France, with 3,800; and the UK, with 3,500. “We believe the buying momentum will continue in 2021. While we may not see a big upsurge in prices, demand will remain strong. A rationalisation of 17/03/2021 More than 70% respondents reported increased demand for luxury property at the end of 2020: Survey - The Economic Times https://economictimes.indiatimes.com/wealth/real-estate/more-than-70-respondents-reported-increased-demand-for-luxury-property-at-the-end-of-202… 3/6 NEXT STORY Appellate tribunal of MahaRERA in place Real Estate Top Trending Terms Tips To Buy A House Real Estate Act Maintenance Charges Residential Real Estate Indian Cities To Invest In Real Estate Investing In Real Estate 6 Rules In RERA Buy A House Buying Real Estate In Another City GST On Houses Real Estate Hub Apps For House To Rent Know How PNB MetLife Guaranteed Future Plan Secur… AD PNB METLIFE KNOW MORE DISCOVER MUTUAL FUNDS All Mutual Funds Top Tax Saver Funds Better Than Fixed Deposits Low Cost High Return Funds IN THE SPOTLIGHT Here's all you need to know about crowdfunding circle rates in India's capital, New Delhi, mortgage rates at a multi-year low, and equity markets at an all-time high, will be strong accelerators for luxury residences,” said Goyal. The report highlighted that the trend of buyers treating bigger as better will continue into 2021 and beyond. “The luxury real estate segment remained unaected by the economic dip infused by the pandemic. Boost in market sentiment can also be assessed from the fact that even during the pandemic year, Gurugram performed reasonably well and witnessed a fruitful sale in luxury housing. Ease in investment opportunities have led to good traction from HNIs in India’s real estate segment and the demand will continue to show an uphill trend in 2021,” said Pankaj Bansal, Director, M3M.
