Aspirations are going sky high, quite literally. The trend of real estate developers getting their projects endorsed by local celebrities like Shah Rukh Khan, Sachin Tendulkar, Mahendra Singh Dhoni or Deepika Padukone is passe. High-end properties now come with global branding.
Trump Towers may have an iconic presence on New York?s upscale Fifth Avenue, so why not transfer some of that to Kalyani Nagar in Pune? Armani?s global appeal as a luxury fashion brand finds a home, also quite literally, in Mumbai?s Global One apartment complex built by Lodha Group, as well as a Supertech complex in Noida, where Armani/Casa has lent its name. Another fast expanding real estate developer, Homestead, has roped in not one, but two global sporting celebrities?Maria Sharapova, the glamour queen of tennis, and Michael Schumacher, former F1 racing world champion. Sharapova was even flown down to India for a day to launch Ballet by Maria Sharapova in Gurgaon, which is in a sector adjoining Michael Schumacher World Tower. Elsewhere, there are similar tie-ups with Disney, Swarovski and celebrity designers Philippe Starck, Roberto Cavalli and Jade Jagger, while others believe that getting a badge like Lamborghini or Porsche, known for its automotive designs, can make it an address impressive enough for potential clients to have on their business cards.
The spread of the global signature tower, popularly known as branded luxury residences or branded realty, is an idea whose time has clearly come, thanks to the cut-throat competition in the real estate sector, the arrival of brash new players over the past few years, and the fact that most property developers are targeting the ultra-luxe, top end of the market. With premium-plus becoming the norm, it makes sense to paste a global signature for that added value. After all, an average escalation of 25% over normal luxury apartment rates can only be justified if an owner believes that his residence has been actually designed by Armani or Cavalli, or that the tennis court in the apartment complex has been okayed by Sharapova.
It?s certainly in line with the ?by invitation only? strategy that some developers are adopting, where the profiles of prospective buyers are scrutinised before they are allowed to make a booking. With the real estate market in a slump, the major players are betting that targeting those with deep pockets is the way to go; thus, we have Supertech, the north India-based real estate group, with Armani and Disney; Homestead, another Gurgaon-based group, with Sharapova and Schumacher; Pune?s City Corporation with Swarovski; and a new milestone set by Panchshil Realty, which has roped in the world?s best-known real estate celebrity, Donald J Trump, to launch the eponymous Trump Towers in Pune.
So what really is the lure, and is it working? Manoj Shrivastava, COO, Homestead, says: ?It is not all about the purchasing ability, but also the attitude, wherein one can align oneself to the highest standards of living. We are targeting the segment that has acquired the taste of living the club-class life.?
Though realty experts believe it is a case of the early birds trying to capture a slice of a niche market, the allure of using names like Georgio Armani, Philippe Starck (the globally acclaimed designer who does hotel and residential properties under the Yoo brand), or Jade Jagger and Roberto Cavalli, does have the potential to attract a certain type of buyer. In fact, Armani, the Italian design powerhouse, has been quoted as saying, ?The idea of luxury?and that includes luxury homes?in India is a lot more widespread than people realise. It is a visual and cultural attitude, which the expanding economy has made available to more levels of the vast population.?
Be it marque automobile brands, big-name international designers, sports stars or even crystal king Swarovski, the Indian real estate market is showing a level of maturity in aiming to provide products with a globally-branded signature, which has instant recall with the premium luxury segment, and the trend is only gaining momentum. The Mumbai-based Lodha Group, Pune?s Panchshil Realty, Supertech, Homestead and BPTP in the National Capital Region (NCR), all have these niche products under construction. Costing between R5 crore and R100 crore, depending on factors such as size, location and facilities offered, branded realty comes at a premium and developers are betting that a unique designer tag will be enough of a USP to attract clients looking for exclusivity. Apart from the basic services that are now expected from all luxury residential complexes?concierge services, electronic access, private security, spas, club houses, central air-conditioning, swimming pools and recreation areas?the branded properties are offering a global lifestyle with the added bonus of a famous signature.
Take Lodha?s World One tower in Mumbai, touted as one of the tallest buildings in the world, for instance. At a height of 1,476 ft, it would dwarf anything around it in Parel, where the twin towers are coming up, and are being constructed by a Dubai-based company. It will house 290 apartments, 64 villas with private pools and 17 mansions on its topmost floors with interiors by Armani/Casa.
The cheapest apartments start at R11 crore and go all the way to R100 crore. By providing branded interiors, developers like Lodha are adding a 30-50% premium over similar products in the market. They are, however, offering something quite unique. Armani/Casa is doing the interiors for each of the units, from floors, ceilings, walls, bathrooms, kitchens and furnishings. Every unit comes finished, but there is scope for customisation with a variety of furniture and furnishing options inside the unit.
Here?s where it gets interesting. The buyers of larger units, world mansions and world villas will be given the opportunity to fly down to Milan, stay there for three days, interact with the Armani/Casa team and pick elements that will be customised for their individual units. That?s not all. At the ?show villa? in the under-construction project, the interiors have the Armani/Casa signature all over. In the spacious living area, soft lighting highlights the rich gold leaf walls and furniture. The entire unit sports clean, straight lines. There are no visible switches, lights turn on automatically when someone enters the room and the television unit recedes into the wall when it is switched off. Even the toilet paper holder in the Armani-Roca branded bathroom disappears into the wall. The balcony running around the apartment has a plunge pool and a bird?s-eye view of the Mumbai skyline.
Lodha Group has also tied up with London-based designer Jade Jagger, better known as Mick Jagger?s daughter, to design the interiors for the top-of-the line apartments in Lodha Fiorenza, a 52-floor complex coming up off the Western Express Highway in Goregaon in Mumbai.
Jade Jagger, who has a house in Goa, has been working in India for 20 years now, and her designs for the super-luxurious 5,300-sq-ft five-bedroom apartments are on display and show her characteristic strong lines, lots of colour and contrast. The entrance area features zigzag black-and-white tiles and bamboo-textured furniture for a retro feel. The house also sports a plunge pool right next to the living room. The style is described as ?classic modern with local elements?. The apartments in the luxury property start at R2 crore and go up to R15 crore.
Armani, meanwhile, has tied up with another builder, Supertech, for its upcoming Supernova venture in Noida. Supertech also has another designer project underway in which it has partnered with The Walt Disney Company to offer branded residences in Fable Castle in its sprawling 100-acre Golf Country estate in Greater Noida. The centrepiece of Golf Country will be homes inspired by characters from the famed Disney franchise. They will come fully furnished with Disney themes. Presumably, the homes will be aimed at those with big bucks and small children.
Indeed, whether in Mumbai, Pune, Gurgaon, Noida or elsewhere, all the branded properties are offering something special in terms of the levels of luxury and exclusivity. There are residences fitted with the finest accoutrements, from Baccarat chandelier, artwork, bathroom fittings, open-plan kitchens and designer furniture and furnishings, but also options where buyers can choose to include a private sky garden, a home theatre and even a cigar room.
Once a nascent concept, celebrity endorsement seems to have become the trendsetter in the country?s real estate market. Significantly, the trend is mostly confined to regions where status and shows of wealth are most prevalent. The Delhi-NCR has the maximum, followed by the western part of the country, mainly Mumbai and Pune. The southern and eastern regions have none of note, with Bangalore being the sole exception, for obvious reasons.
The trend started with Panchshil?s collaboration with French designer Starck?s Yoo Design Studio for YooPune, a super-luxury apartment project in Pune. YooPune has 228 apartments with prices starting at R8.5 crore each. This was followed by Supertech roping in Armani/Casa and Disney, while BPTP, another north Indian property firm, tied up with Italian design house IPE Cavalli to develop the Visionnaire Villas in Gurgaon. In Mumbai, the Lodha Group, apart from the Armani connection, is also building the 23-acre Lodha Evoq in collaboration with Starck.
The big bang collaboration has been with Donald J Trump in early 2012. The project spread across 2.5 acres will come up at the upmarket locality of Kalyani Nagar in Pune. Trump Towers Pune will be one of the tallest residential towers in Pune and will have two towers of 22 floors with each tower housing 44 luxury condominiums. Each floor houses one spacious apartment of approximately 6,000 sq ft with five bedrooms and an exclusive home theatre room. The project is slated to be ready by 2015.
Trump had entered India last year with a JV partnership with Rohan Lifescapes to build a 45-storey luxury residential tower in Mumbai, but it did not take off. The Pune project has got all its approvals and sanctions, and construction is underway; so Trump Towers Pune will be their first luxury residential project in India. The apartments are expected to cost around R12 crore and the project has a wait list, according to Atul Chordia, chairman and CEO, Panchshil Realty.
?Luxury lifestyle is fast catching up in India and with the growing number of high-net individuals in the country, we have realised that our brand adds significant value to ultra-luxury real estate developments in India,? Donald Trump Jr had said at the time of going public with the deal. Renowned Italian interior designer Matteo Nunziati will be designing all common areas, including the amenities floor with world-class leisure facilities.
Maharashtra also saw the launch of the Gateway Towers 1, designed as part of the Amanora Township, an exclusive first-of-its-kind project under the state government?s township policy in a tie-up with Swarovski. David White, global vice-president, marketing and sales, Swarovski Lighting, says, ?India is a very exciting and interesting market with many brand connoisseurs who hold a deep appreciation for beauty and luxury. As India evolves, we expect Swarovski lighting and interior products to emerge as a perfect fit for those discerning Indian customers who want to celebrate their success with beautiful, exclusive designs for their personal spaces.?
The increasing inherent appeal of global brands, as well as the relatively new idea of limited-edition residences is what is attracting a new kind of affluent customer. It is, however, very much a niche market. At current estimates, the branded luxury residence segment in India is worth about R7,500 crore?or about 1,000 units?and it is likely to grow at a minimum of 20% annually. Indeed, market analysts Jones Lang LaSalle?s CEO, Residential Services, Om Ahuja, says the segment is yet to provide value for money when it comes to location and the product. In response, RK Arora, CMD, Supertech, says the volume of import both by way of concept and material is significant and justifies the premium a buyer pays for such designer products. Some developers are pushing the envelope further by including art galleries or an observatory in high-rise apartments. In the Starck-designed YooPune, the buyer also gets to indulge in the branded Sixth Sense Spa, a tea lounge and even a cigar room as part of the residential amenities.
So who are the buyers of branded realty products? Obviously, HNIs are prime targets, but as the segment continues to grow, NRIs, with the rupee depreciation, are also prospective buyers, who buy these as either a second home or an investment. Since these are customers who enjoy global mobility and living standards, they are likely to favour the services offered by such residences. For the builders, the collaboration with a global brand lends credibility and offers scope for a pan-India presence. It also helps the developer to charge a premium over comparable products in the same market. Says Ahuja of Jones Lang LaSalle: ?Developers usually look at a short-cut to sell their luxury product and an easy way today is to tie up with a brand of international fame. This not only adds a brand image to the developer, but also helps them to position their project in a way which can be sold off easily.?
Whether branded realty turns out to be the next big thing or just a passing fad, for many of India?s rich, from wearing Armani to living in Armani would seem a logical step.
With inputs from Geeta Nair
