Luxe housing in demand

Boutique luxury homes segment, defined by an extreme focus on quality rather than volume, continues to sell well

With the revival in Indian residential real estate well underway, it is pertinent to turn our attention to which formats have been in high demand at every juncture. Such awareness is primarily useful from an investor’s point of view, but anyone who tracks Indian real estate out of pure academic interest cannot fail to be interested, either.

Luxury housing was one of the major losers after the demonetisation move and had fallen backward even before COVID-19. While it has now come back in strength, there is one niche segment which held its own even during the lowest trough period. This specialised niche is the boutique luxury homes category. They are also known as ‘limited-edition’ residences, and for good reason.

The boutique luxury homes segment is based on a sound business premise, and such homes continue to sell well even as volume luxury properties lag far behind. This is primarily because there is a distinct scarcity quotient attached to them. Such properties are constructed with a very limited number of units in extremely high-profile locations and are consistently in high demand among the super-rich. The demand for such properties has risen visibly over the last couple of years, as land availability in our larger cities’ core areas reduced.

Many of the builders who create boutique luxury homes are highly specialised and cater only to this particular market segment. They find this format a unique business proposition, since it is possible to construct and deliver boutique luxury projects within six to eight months, while volume luxury projects take much longer to complete. Other players deploy boutique homes as a lucrative sideline while they continue to focus on high-volume mid-income housing.

What it constitutes

Developers of boutique luxury homes throw in every possible high-end amenity into such properties and even factor in the personal specification requirements of individual buyers wherever possible. Unlike volume luxury housing projects, boutique homes are extremely unique residential propositions. Interestingly, unlike in volume luxury projects, marketing of such properties tends to circumvent the larger investor community entirely and focuses on small ‘inner-circle’ investor groups and end-users.

In short, boutique luxury properties are defined by an extreme focus on quality rather than volume. Demand for them comes from the HNI segment, and is focused and competitive because of the small number of units involved. Typically, there will be no more than 5-10 units to a project, and each of these units will be fully embellished with ultra-luxurious specifications further customised to the individual buyer’s personal wishes. Interiors, furnishings and lifestyle accessories will be uncompromisingly top-of-the-line. Private lifts, in-house Jacuzzis, saunas and swimming pools, sun decks and multi-car parking are the norm.