Luxury housing,which took a beating in the last two years, is poised to gain momentum yet again, basically in Indias Tier-I cities.
Though luxury housing emerged as an attractive segment with investors in 2006-07, characterised by launches of dozens of projects aimed at the affluent class, the global economic downturn arrested this trend in 2008. From then on, the focus of builders has shifted to affordable housing.
However, with the countrys GDP expected to clock 8% plus growth in 2010-11 and probable double-digit growth starting from2012, the country is ready for the next wave of wealth creation, especially in tier-I cities. The developer community senses this and has launched more luxury projects in the recent past.
This trend should to gather pace, primarily in Tier-I cities, where wealth creation is a significant factor and continues to be more pronounced.
Similar to the stock market reaching new heights, Mumbai city will lead the pack with more launches of taller, high-specification and luxurious projects in the future.
The writer is head of research & real estate intelligence service, Jones Lang LaSalle Meghraj