Luxury spreads to Tier 2 Cities in India

As per the India Today article, at a current value of $2.45 billion, the Indian luxury market is poised to double its value to $5.8 billion in the next five years, says the latest Confederation of Indian Industry-AT Kearney Report on Indian Luxury. The growth, much like India's larger story, will be propelled by smaller, scattered markets, the new pockets of wealth in Tier II cities. "In the next 5-7 years, at least seven new towns will get added to the luxury map of India" is the projection.

The annual World Wealth Report of Merrill Lynch Wealth Management and Capgemini has revealed that the number of millionaires in India has surged to a record high of 1.53 lakh in 2010, making the country's high net worth individual (HNI) population 12th largest across the globe. The survey also revealed that the Indian millionaire is no longer shying away from luxury collectibles. This must have perked up the developers in India, most of them having more than one finger in the luxury pie.

The definition of luxury homes in India has seen a sea change. As aspirations rise, the globe trotter consumers are seeking for exclusivity and customisation in every nook and corner of their home. Luxury homes today are more about making a lifestyle statement. High-end specifications coupled with designer fit-outs and high-tech gadgets of global standards are the driving factors.

Some builders feel that luxury is defined by space and not by number of bedrooms .The general specifications of the units are very good and so luxury homes have to strive to do a better job. A truly luxurious home means a well designed layout having open space, a garden, facilities like jacuzzi, piped gas, a concierge desk, etc. It also means services like rental management and property management so that the customer doesn't have to worry about anything at all.

However one of the major challenges in the luxury real estate market are absence of quality of labour which is a serious concern for most builders. It is for this reason that people cannot get better finish and better quality buildings. Apart from this, the kinds of material that builders need to make these quality homes are not easily available in the country. These are special kinds of building material used specifically for designing these (high-end living spaces) and giving them aesthetic uplift. These have to be imported from Europe or other countries.