The demand for branded homes is being driven by the pride of owning branded residences with world class exterior designs, luxurious amenities, top end interiors and highest standards of servicing. Branded Homes have been able to build exclusivity and sell 25-30% over the average price of a similar product in the given location.
Why have Branded Residences done well in the past?
- High project and brand recall value
- Instant appeal to the brand conscious globetrotter buyer
- Excellent interiors set them apart from other projects in the price bracket
- Assurance of high quality amenities and services
What will guide the overall demand?
Latest edition of the Kotak wealth report projects the number of ultra HNIs to increase to 294,000 by FY21 with a combined net worth of ~319 trillion driven by new ultra HNIs (Ultra HNIs are defined as individuals with minimum net worth of Rs 250 mn). The number of ultra HNIs grew to 146,600 in FY16 from around 137,100 last year, a growth rate of 7% over one year and 16% compounded growth over five years.
Traditionally Indian real estate has had concerns in the quality of delivery, credibility, and standards of interiors and amenities. Branded residences are a way to ensure construction quality and build a positive perception around the project.
The market lens
A range of branded homes, under development in major markets of India by leading developers have witnessed good response over the last few years.
Lodha Group's New Cuffe Parade, Mumbai has buildings designed by the bigwigs like Philippe Starck and Kelly Hoppen. It will have the country's largest clubhouse over an area of 75,000 sq ft, 11 swimming pools and a 5,000 sq ft spa.
Sunteck has tied up with Disney to offer a project called Sunteck City in Mumbai. Another of its branded residence project in Nagpur, called Charcoal has homes designed by Sussanne Roshan.
Oberoi Realty’s Three Sixty West in Mumbai is in collaboration with Ritz-Carlton. Homes here are serviced by the hotel adjoining the residential tower.
IREO’s Grand Arch-A, NCR houses a salon chain outlet of international fame within its premises-introducing Warren Tricomi Salon and Spa to its clubhouse.
Embassy group, Bengaluru is developing the Four Seasons Private Residences with 110 units within two towers, spread over 1.5 million sq ft of mixed-use development.
Prestige Leela Residences, Bengaluru will house ultra-luxury homes are set amidst the classical architectural style reminiscent of the Mysore Royal Palace. Prestige has also tied up with Disney to launch Prestige Lakeside Habitat in Bengaluru with Disney inspired children's rooms and play area.
Panchshil Realty is developing a Donald Trump branded project called Trump Towers in Pune. This is a Donald Trump venture in India and is attracting many sports and Bollywood celebrities. Rishi Kapoor and Ranbir Kapoor have bought an apartment apiece at the coveted Trump Towers.
For more insight on branded residences or help on planning a branded residential purchase, write to me at email@example.com.
Sources of information: newcuffeparade.com, embassyindia.com, Times of India, Kotak Top of Pyramid 2016