AS HOME sales continue to dip, real estate developers are tapping the luxury home segment by targeting non-resident Indians and high net worth individuals keen on buying that exclusive villa in India. The move also seems to be backed by pure market play as demand in the luxury home segment is growing sharply, bucking the trend seen in other parts of the industry where exposure to high-risk borrowers has tightened loan flow from banks. Real estate players that ET spoke to said that these noveau rich were now moving up the chain and extending their possessions of luxury homes with ultra-sophisticated amenities such as personal swimming pools, jogging tracks, health clubs and personal gardens. Leading developers such as Sobha Developers, DLF, Kalpataru, Nitesh Estates, Unitech, Omaxe, Royal Palms, Lodha Developers and Marvell Realtors are developing projects in cities such as Mumbai, Delhi Pune, Goa, Bangalore and Kerala, with the price tags of average luxury homes varying between Rs 3 crore and Rs 50 crore. The price of the luxury home depends on the city it is built in and the range of amenities it offers. “Our customers typically belong to the top management in various corporate firms while some are overseas Indians,” says Nitesh Shetty, chairman of Nitesh Estates, which has priced its luxury home products in Goa, Bangalore and Chennai in the range between Rs 5 crore and Rs 8 crore. The Bangalore-based firm is marketing its projects in the overseas market by hiring sales executives and participating in property exhibitions. While it has been there for some time now, the luxury home segment in India is estimated at around Rs 2,000 crore with around 30 million potential buyers. Like Nitesh Estates, many real estate firms have started marketing their projects in the overseas market by organising property exhibitions and floating sales offices in the countries like the UK and US and UAE. These high-end homes are typically located on private roads that are fenced off with an exclusive private gate and state-of-the-art security systems including cameras. The amenities could also include a spa, multi purpose court, climate controlled swimming pool, gymnasium and a business lounge. Mumbai-based real estate firm Lodha Developers has priced its luxury home project in Worli at Rs 40 crore while the company’s other projects in Mumbai cost over Rs 10 crore. Similarly, Royal Palms has started selling exclusive villas in Goregaon East, inside the Aarey Colony area of suburban Mumbai at Rs 4.5 crore each. A typical luxury home is spread over about 4,430 square feet in Mumbai, where the comparable size of a home for an average family of four is about 800 square feet. Out of 16 villas, Lodha Developers claim to have finalised sale of four homes to non-resident Indians and businessmen. Source: ET, 17.03.08 page 17 Rajesh Unnikrishnan MUMBAI