India’s luxury property market boom has ‘no plateau in sight’ – is it sustainable?
Thriving luxury housing market signals shift in buyer behaviour seeking long-term value, but short-term bumps likely, analysts say
When Indian property developer DLF launched a housing project in Gurgaon on the outskirts of capital New Delhi last month, all the flats sold out within a week despite a minimum price tag of more than US$1 million – a figure that would have daunted most buyers until recently.
The successful sale of the project called DLF Privana North in Gurugram followed two others over the 116-acre (47-hectare) residential development, DLF Privana South and DLF Privana West, each of which were sold out in 72 hours in January and May last year respectively.
A mix of volatile geopolitical tensions – which have driven overseas Indians to buy into reputable residential properties in their home country – combined with domestic entrepreneurial and professionals’ wealth has ushered in a new genre of housing.
The sale of such expensive homes has caused concern among certain quarters over whether the trend is sustainable.