In conversation with Charulatha, Correspondent at Homes India Magazine. Sahil shares his views on about the impact of changing regulatory frameworks & policies on luxury real estate segment and the role of technology in enhancing the luxury real estate experience for both developers and buyers.
Sahil Kapoor, having completed his MBA in Marketing & Sales from Amity University, Sahil possesses over 15 years of experience in marketing management, negotiation, business planning, sales, and real estate development areas. Prior to coming onboard Keller Williams earlier this year, he has successfully handled key roles across companies such as 360 Realtors, RE/MAX India and LexisNexis Butterworths.
Share your thoughts on the growing demand for luxury real estate in India.
One of the key factors that is driving the demand for luxury real estate in India is our common emotion of a home being very close to our heart. Unlike in western countries, we don’t change our homes on a frequent basis and tend to stay in a single home for a long duration. This has made people view purchasing a house as something that they only do once or twice in their lifetime and thus carry a ‘no compromise’ attitude in this matter. Since most of their family gathering and social moments are spent in the house that they buy, they are ready to stretch their limits in all aspects while buying a house. Also, people today strongly believe that the address that they live in and the place that they own is a representation of their personality, thus viewing their home as a status symbol as well. Further, the WFH and online learning practices that became mainstream post covid made people to now prefer bigger spaces that are fully equipped with all their desired facilities – gyms, home theatres and many others. These are some of the major aspects fuelling the demand for luxury real estate in India lately.
"The emergence of corporate developers into real estate and construction space over the last decade has resulted in the demand for luxury real estate reach an all-time high."
What is the impact of changing regulatory frameworks & policies on luxury real estate segment?
With the implementation of RERA in 2017, the entire real estate ecosystem is now more secure than ever before. Prior to this, both customers and real estate investors were under a lot of pressure and had even suffered losses due to the non-regulated nature of the industry. As a result, the real estate sector has seen a significant growth post covid, even when most of the other industries were impacted adversely. Also, the emergence of corporate developers into real estate and construction space over the last decade has resulted in the demand for luxury real estate reach an all-time high. Additionally, the interest rates on property loans have seen a significant in recent times. While the interest rate stood at 6.5 percent prior to covid, today, it stands at around 9.2-9.4 percent. However, this has not had much of an impact on the luxury real estate segment. Unlike western countries like US, Canada and UK, the demand is not inflated by artificial investors backed demand in India. As a result, we mostly remain unaffected by any kind of developments in the market – both in terms of demand and price.
"The WFH and online learning practices that became mainstream post covid made people to now prefer bigger spaces that are fully equipped with all their desired facilities."
Briefly explain the role of technology in enhancing the luxury real estate experience for both developers and buyers.
Technology plays one of the most crucial roles in any luxury real estate development. Today, seeing 40-50 storied buildings has become too common across almost every city in the country, thanks to the implementation of latest technologies into our construction process. Also, advancements like home automation are promoting tech-savvy properties for today’s millennial consumers. As a result, homes have today become more IT enabled and technically well-equipped. Thus, it is safe to say that technology is no doubt playing a very vital in the entire process cycle of a real estate project.
How are environmental regulations and concerns affecting the planning and development of luxury real estate, especially in economically sensitive areas?
Every developer who is engaged in luxury real estate no doubt has deep pockets. Most of them are large size corporate developers who ensure to abide by all regulatory policies pertaining to the environment before they launch any project. This is because every developer is now mandated to obtain the RERA license to every project prior to marketing or selling any property in that project. Also, a lot of developers are promoting sustainability by implementing ecofriendly practices and ‘closer-to-nature’ kind of amenities within their projects. Additionally, the usage of electric vehicles and having electric charging points for every house in the parking space promotes sustainable development. Also, using eco-friendly materials for construction is promoting sustainable development to a great extent.
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