Millennials, Gen Z increasingly attracted to investing in luxury homes: Neeraj K Mishra

Embodying traits of sustainable housing in luxury residences and projects has become a popular phenomenon in today’s world. The growing awareness of environmental issues and the increasing demand for eco-friendly living solutions are driving this trend, says Neeraj K Mishra, Executive Director, Ganga Realty.

In an exclusing interview with Sanjeev Sinha, Mr Mishra talks about the rising demand for luxury housing in the Delhi-NCR market and tthe main drivers behind this demand. Excerpts:

How is the luxury housing market performing in Delhi-NCR in your view?

Luxury housing demand has been flourishing undergirded by a significant uptick in consumption of bigger homes like 4 & 5 BHK homes, penthouses, and AI-enabled residences. Millennials and the Gen-Z population, which consists of a majority of property buyers today, are picky and hyper-aware regarding their investments and wish to invest in homes that suit their liveability standards, ambitions, and exemplary temperament. Recently, a CBRE report stated that the luxury real estate segment witnessed a humungous 10% Y-o-Y growth during the Jan-Mar quarter across seven cities, with Delhi-NCR doubling its Y-o-Y luxury sales growth. Gurugram, particularly, has become a luxury housing hub underpinned by a stupendous acceleration in luxury home deliveries, consumption rates, and sales owing to a vast infrastructural upsizing and a plethora of high-end home options.

Which sectors in Gurugram are superlative living options for luxury home buyers and witnessing optimal growth?

New housing havens are at their zenith in multiple indexes such as infrastructural growth pace, the concentration of quality housing projects, and newer and finer experiments in realms of construction & architecture near the Dwarka Expressway, more prominently after the operationalization of the Gurugram section. Once the entire expressway is completed, the IGI Airport will be approximately 30 minutes away, encouraging many homebuyers to invest in emerging corridors like Sector 84 and 85. Infrastructure improvements are essential for real estate growth and subsequent urbanization. The state government’s efforts to enhance the Dwarka Expressway with service lanes and sustainable infrastructure have drawn an increasing number of property buyers to these areas.

Is embodying traits of sustainable housing in luxury residences and projects a popular phenomenon in today’s world?

Embodying traits of sustainable housing in luxury residences and projects has become a popular phenomenon in today’s world. The growing awareness of environmental issues and the increasing demand for eco-friendly living solutions are driving this trend. High-end real estate developers are integrating sustainable features such as energy-efficient appliances, solar panels, rainwater harvesting systems, and green roofs into their projects. These features not only reduce the environmental impact but also offer long-term cost savings and healthier living environments. Luxury homebuyers are increasingly prioritizing sustainability, seeking residences that align with their values of environmental responsibility and energy efficiency. This shift is also driven by regulatory changes and incentives promoting green building practices.

Sustainable luxury residences often include innovative designs that maximize natural light, use sustainable materials, and incorporate smart home technologies to optimize energy use. Additionally, the prestige associated with eco-friendly living and the desire to stay ahead in the market push developers to adopt sustainable practices. As a result, sustainable luxury housing is not only a trend but is becoming a standard in the industry. The intersection of luxury and sustainability reflects a broader movement towards responsible living and the recognition that high-end living can and should be harmonious with environmental stewardship.

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How has the integration of smart home technology transformed the luxury real estate market?

The integration of smart home technology has significantly transformed the luxury real estate market by enhancing convenience, security, and efficiency for homeowners. Smart homes incorporate advanced systems that allow residents to control lighting, climate, security, and entertainment from their smartphones or voice-activated devices. This seamless automation provides a level of comfort and personalization that is highly appealing to luxury homebuyers. Security features such as smart locks, surveillance cameras, and motion sensors offer peace of mind, allowing homeowners to monitor their properties remotely.

Additionally, energy management systems optimize heating, cooling, and electricity usage, promoting sustainability while reducing utility costs. The ability to program and control these systems contributes to a more efficient and environmentally-friendly lifestyle, aligning with the growing trend of sustainable luxury living. Entertainment and convenience are also enhanced through smart home technology. Integrated audio-visual systems, automated blinds, and smart kitchen appliances simplify daily tasks and elevate the overall living experience. The connectivity provided by these technologies creates a cohesive and immersive environment, making luxury homes more desirable.

Since the last few years, it has been noticed that Millennials and Gen-Z property buyers are flocking to property markets to primarily invest in luxury residences. What is your take on this?

Millennials and Gen Z are increasingly attracted to investing in luxury homes for several reasons. As they advance in their careers and recognize the potential stability and profitability of real estate investments, they view luxury properties as a means of wealth accumulation and financial security. Additionally, these generations value experiences and quality of life, seeking homes that offer advanced amenities, eco-friendly features, and access to prime locations. The rise of remote work has freed them from the need to live in urban centers, allowing them to choose homes that provide a tranquil escape or a vibrant community atmosphere. Moreover, the appeal of luxury real estate as a status symbol is significant, with social media enhancing the desire to display success and affluence. Whether motivated by financial acumen, lifestyle choices, or social aspirations, Millennials and Gen Z are transforming the luxury real estate investment landscape.