Branded residence is a new concept in India and a less popular niche of the real estate market. Although, a limited number of buyers are there who demand for such fashion homes, but still the real estate market of luxury homes is getting an attention. The prime reason of introducing high class properties is that realtors and investors are becoming brand savvy and thus, they are collaborating with the popular hospitalities and brands to offer an exclusive living standard. This idea is trending in the cities like Delhi, Mumbai, Noida and Greater Noida. As an example, Home and Soul collaborated with Fashion TV to introduce international lifestyle to the people planning to settle in Noida.
Building luxury apartments in India are also highly dependent on the economic growth. Let’s explore the various advantages and limitations of this segment to determine whether such branded themed residences are a good investment platform or not.
Who are demanding branded residences?
In India, for some people fashion home defines the status symbol. There are many individuals whose preferences are luxury, signature, location and brand, when they are investing in the real estate. Therefore, the developers customize the homes by adding superb aesthetics and features so as to add an essence of elegance. Such customized apartments make the perfect investment option for buyers looking for a modern flat, villa or apartment.
Why are buyers attracted to branded residences?
Alluring interior designs
Theme based architecture
All these features attract the buyers who have a desire of living an ace-class lifestyle.
A few challenges for developers:
Branded residences in India sounds nice, but a builder has to face various challenges for its development. Let’s have a look on them:
Location- Getting an approval of land usage for construction in India is not a piece of cake, instead there is always a long process. When it is a posh area, the approval is not only an issue, but the scarcity of such locations is also a matter of the subject especially in metro cities.
Limited buyers- On an average, the number of mid-income segment people is more than that of high-income segment people. Thus, the possibility is always high that a builder will get more buyers lying under middle class than that of the upper class.
Marketing and Public Relationship- Getting associated with a brand is easy, but justifying its reputation can be sometimes difficult. So, it is very important for a builder to choose the brand before collaborating.
Infrastructure- Expectations of a buyer can never be predicted. Thus, it is another one of the biggest challenges for a builder to develop a home having all elements of luxury.
Above all factors are depicting the fact that the scope of branded residences in India is uncertain. The prime reason is that the number of people that lie under the category of mid-income is more in contrast to people who can pay extensively to acquire a swanky address. The bottom line is that the growth of luxury homes in India will depend upon the number of relevant buyers and these buyers can emerge with the hike in India’s economy.