By Harsha Vardhan – Director , Kumari Builders and Developers.
A growing trend
It’s hard not to notice billboards in Bengaluru selling property with attractive headlines such as ‘premium villas in less than 60 lakhs’ and ‘premium apartments in less than 40 lakhs’ — usually coupled with attractive schemes and offers. And why not? After all, premium housing that fits one’s pocket is the need of the hour.
City-dwellers today face a housing crisis in light of infrastructure constraints, persistent traffic congestion, pollution, and other crippling urban issues. These problems are encouraging more and more urban residents to look for suburban properties that offer both premium amenities and a healthier lifestyle — all at a reasonable price.
Economics of affordable luxury
An easier availability of land in the extended suburban markets and improved infrastructure connectivity is enabling developers to offer inexpensive yet world-class housing facilities. They are now constantly innovating new ways to equip these houses with a diverse range of affordable luxuries by:
- Developing properties in emerging locales with potential for long-term appreciation
- Designing compact yet aesthetic homes
- Offering greater access to open, green spaces
- Building commercial spaces that cater to everyday needs
This market shift is certainly driving real-estate sales upwards while continuing to attract a growing number of educated investors whose only objective is long-term capital appreciation.
Revamping business models
In recent years, there’s been a trend of selling budget-friendly premium properties. This is, in part, owing to the government’s efforts to promote affordable housing through schemes such as Pradhan Mantri Awas Yojana (PMAY) and Credit Linked Subsidy Scheme (CLSS) as well as through the introduction of stringent development regulations. Moreover, influences such as ever-increasing land prices, high finance rates, and rising construction costs have caused significant changes in the sector. All of these factors are together changing the face of the industry in the following ways:
- Margins now increasingly depend on selling a well-made end product rather than exponential gains from land appreciation
- The scale of these margins will depend on the speed of sales — the faster a property sells the better, hence
- Developers now need to efficiently manage their development cycle — from planning to project management and maintenance
In an attempt to adapt to this new reality, more and more developers are having to rely on specialist Project Management Companies that can deliver high-quality products within budgets and timelines. The ultimate beneficiary of this shift is, of course, the end consumer.
More for less
Discerning consumers today recognize a quality product that meets their expectations, which now include an almost entirely self-sufficient living complex.
In such properties children don’t need to leave the campus except when they are commuting to school, “There are multiple options to keep them engaged within the complex.”
An integrated community such as this includes parks, sports arenas, movie halls, stores, hotels, and other amenities that facilitate a premium living experience. Add to this scenic views, spacious balconies, and private recreational facilities, and you have the makings of a truly luxurious lifestyle — made available at consumer-friendly prices!
When consumers can clearly outline their expectations of a living space, it enables developers to build world-class properties that meet specific requirements. This opens the door to healthy competition that, in turn, helps the end-consumer win. All of this means that the right time to invest in this market is now!
Corporate Comm India(CCI Newswire)