Comments
A number of builders are increasingly opting for a specialised niche — boutique luxury homes, or ‘limited-edition’ residences.
“While most developers of luxury housing were concentrating on generating volumes in that segment, there is a category of builders cashing in on boutique luxury homes,” Anuj Puri, Chairman, Anarock Property Consultants, told BusinessLine .
“The boutique luxury homes category comes with a unique business model. The segment is selling well even as volume luxury properties lag far behind. This is because there is a distinct scarcity quotient attached to them and extremely high-profile locations are in consistently high demand among the super-rich,” he added.
The demand for such properties has risen visibly over the last couple of years, as land availability in larger cities’ core areas has shrunk. Typically, builders who create boutique luxury homes are highly specialised and cater exclusively to this segment.
Lucrative sidelineAccording to Puri, players may use boutique homes as a lucrative sideline while focusing on high-volume mid-income housing.
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 customised to the buyer’s personal wishes.
“They find this format a unique business proposition, since it is possible to construct and deliver boutique luxury projects in six-eight months, while volume luxury projects take much longer to complete,” said Puri.
“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,” explained Puri.
“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,” he added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.