With more than 15 villa schemes in the price range of Rs5 crore to Rs10 crore in the city, you would be asking where’s the slump? Yes, real estate developers are launching costly villa schemes in the city, sliding economies and financial slowdowns, notwithstanding.
The high-end luxury villa segment seems to be in stark contrast to the prevalent market conditions with nearly 15 such schemes being offered by different developers. These luxurious villa schemes, priced between Rs4 and 10 crore, are not clustered in any particular area but are available at various locations across the city. The developers have launched such schemes at locations like Vaishnodevi Circle, Shela, Gokuldham to name a few.
According to developers and consultants of the real estate market, the current market condition does not affect this segment. “The response in this category is very good as majority of the customers are high-end users in this segment,” said Pavan Bakeri, managing director, Bakeri Engineering and Infrastructure.
The economic slowdown is one of the reasons for investors not investing in this segment on a large scale. Though, they are still willing to seal good deals. The NRI buyer is not much interested in such properties as maintenance and recurring costs could be much higher as compared to other segments, said Bakeri.
Even with the sentiment not quite in favour of the real estate market, major crisis is seen among middle income group (MIG) buyers. The MIG segment seems to be reeling under pressure and await corrections in property prices as well as interest rates, said Pravin Bavadiya, chairman and managing director of City Estate Management. However, the customers from high-net-worth groups are not too affected by the slowdown he added.
“Majority of the people want to upgrade their standard of living and wish to buy bigger and better houses at preferred locations. They look for precision, style and location first and then check the price of the property,” said Bavadiya.
