India is emerging as a favoured destination for Branded Residence

By Ankit Kansal, MD SKYE

India is becoming a favoured destination for international brands who want to enter the lucrative Branded Residency segment. Already, the south Asian economy has a decent supply lines of around 2900 units, almost one-tenth of the global market. This however is just a tip of the iceberg, as the overall potential is vast.

It will be an understatement that India can’t become one of the most sought-after markets for Branded Residences, giving stiff competition to Europe, Americas, and Asia Pacific. India’s huge economic size, steady surge in income levels, and the emergence of well-heeled HNIs are some of the key drivers that will accelerate the demand.

Growing Premium Real Estate Market in India

India’s luxury real estate market is thriving at an unprecedented rate. Many research and consulting houses has suggested that the segment is growing at a CAGR of 9-11% since 2019. Spurt in disposable income and a strong drive to upgrade lifestyle are fuelling demand for premium properties in the country.

New-age entrepreneurs, top corporate honchos, creative leaders, are now willing to pay premium to get access to top-tier facilities, exclusive spaces, and a branded lifestyle. This is naturally feeding into the demand for Branded Residences, which are becoming the maven for India’s rich and ambitious.

When compared to other premium category properties, Branded Residences have an edge over its peers. It can offer a superlative lifestyle, which is hitherto unheard of. Few years back hardly someone has thought of concierge, in-house dining services, private spas & wellness clubs, wine cellars and cigar lounges inside a housing complex. However, thanks to Branded Residences such as superlative lifestyle is now a reality.

Moreover, the presence of brand ensures prior due-diligence of the project. This adds an additional layer of security both financial as well as in terms of quality standards.

Luxury at your own Neighbourhood

Indian HNIs alongside their counterparts from western world and China has been a key propellant of global luxury property markets. They are one of the key forces behind real estate in Dubai, London, and Singapore. They are also betting big on Greece, Malta, Cyprus, etc. High net worth individual with elevated disposable income spend generously in owning flats, mansions, condos, villas, etc. in international markets.

However, this trend might reverse in future with availability of premium stocks in the form of Branded Residence in India itself. When you have great assets in your own country with a superlative lifestyle, why do you need to go cross-border in search of luxury. Many avid international investors in future will prefer to invest in premium properties in India backed by world-famous brands.

The Euphoria will go Beyond Metros

Currently, the Branded Residence segment is mostly limited to larger metros. However, in a matter of time, many big brands will also explore other potential regions such as Tier-2 cities, city peripheries, tourist destinations, etc.

There is a whole range of affluent class residing in smaller cities in India such as Jaipur, Chandigarh, Lucknow, Patna, Cochin, Mangalore, etc. Many invest in the premium markets of their nearest metros due to lack of options at their own place. However, if branded residences will go there, a new demand pattern will unravel. Buyers their have money but not much options to invest. Branded Residences can bridge that gap. Similarly, there is plenty of potential for branded residences to take off in tourist destinations such as Goa, Uttarakhand, Shimla, and Konkan.