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Ahmedabad: Even slump clouds cannot rain down luxuries' fortunes

City's realtors say high-end apartments aren't influenced by market sentiments and hence they are going strong despite market inclemencies.

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While, going with the market mood, the pendulum of fortune swings both ways for the real estate sector; but it remains quite steady for the high-end luxury apartments. Reason? Developers believe that this niche market does not see a large participation of speculators, thereby making its prospects more secure.

Realtors claim they do not seem to be facing problems in selling high-end apartments in spite of the despondency in the market owing to the slowdown. This could also be one reason why they prefer to launch high-end apartment schemes at regular intervals, than affordable housing options.

“The high-end apartment market does not see a large participation of speculators. As a result, it is not highly influenced by bearish or bullish sentiments, but moves steadily based on consumer demand,” said Shaan Zaveri, partner of Amaya Developers.

Although the affluent class continues to live in lavish villas, a gradual shift is taking place towards high-end apartments too. As a result, the segment witnesses a continuous demand making it less vulnerable to market sentiments.

When asked about the shift, realtors point at skyrocketing land cost to be one of the major reasons for this changing trend.

“The high-end villas with all modern amenities would not cost less than Rs8-10 crore as the land component is very high in such projects. On the other hand, the high-end apartment with same facilities will be available at half the cost,” said Pravin Bavadiya, national vice-president of National Realtors Association.

Although some families have huge ancestral properties in the heart of the city, more space is required due to the increase in size of the family. Sometimes, they cannot even afford to have bungalows, small or otherwise. Still, they do not want to compromise with their living standards.

“For such families, luxury apartments are a good choice,” said sources. Moreover, the nouveau riche, too, opts for lavish apartments for the same reason.

Developers also believe that maintenance and security issues may play an important role in the preference of high-end apartments equipped with modern security systems. “The high-end apartment market is small but niche and is associated with the buyers’ status,” said Himanshu Madanmohan, director of Safal Constructions. He further said that with the rise in population, people want some private place equipped with modern amenities like swimming pool and terrace garden among others. Madanmohan is coming up with two high-end apartment schemes on the BRTS corridor between Bopal and Iskcon Circle.

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