Luxury Statements
Vishwajeet Jhavar examines the growth in India's high-end realty market

Profile
Vishwajeet Jhavar is a graduate of the College of Engineering, Pune, with a specialisation in instrumentation and controls. He has over 16 years of experience in the areas of automation, engineering and construction. As CEO of Marvel Realtors, he manages key portfolios like land sourcing, automation, and business development.

Marvel Realtors
Marvel Realtors is one of Pune’s most widely-recognised names in real estate, having more than 11 years of experience in developing and constructing ultra-luxurious projects. Marvel has 23 million sq ft of luxury residential construction under its belt, and its exclusive apartments will soon be visible in Mumbai and Bangalore. Since its inception in 2001, Marvel Realtors' greatest challenge has been to consistently surpass its own benchmarks. Marvel’s projects are synonymous with luxury, quality, and technology; it pays attention to every minute detail and ensures in-house construction, stringent quality control, superior finishes, routine checks on cost and time over-runs, and detailed and transparent project scheduling and estimations.

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Even in the face of the global financial crisis, India’s economy has remained stable and has witnessed a great deal of economic development. This growth is especially pronounced in the infrastructure and real estate sectors, making India one of the most-preferred destinations for investment in the Asia-Pacific region. The Indian real estate sector has emerged as the most lucrative area for domestic as well as foreign investors - a claim that has been endorsed by various global reports and analysis.

This achievement is especially noteworthy if you consider the fact that 10 years ago, India did not even have a luxury real estate segment other than bungalows, etc.

In developed countries, the luxury market has traditionally accounted for 6-8% of the total real estate market. India is now approaching this figure, and this is proved by our volumes: At Marvel, approximately 150,000 sq ft of luxury apartments and offices are sold each month. This is because the Indian market is not speculative; real demand is driven by the end-user. Although the demand for affordable housing still remains high, the significant change is the increasing demand for luxury homes - in the price bracket of Rs 80 lakh and above.

SPREADING WEALTH
We have seen a steady percolation of wealth among a cross-section of the population, leading to the rise of a new breed of affluent class. The income and spending habits of the Indian consumer are evolving. Today’s consumers are increasingly connected globally, are aware of what is available elsewhere, and aspire to this lifestyle here in India. For these consumers, luxury real estate is perceived as value for their hard-earned money.

With today’s fast-paced lifestyle, automation helps make life simpler and more comfortable. People are willing to spend more on luxury goods and automation. It is observed widely that people do pay more attention to high-end features such as security systems and recreational facilities. In addition, as the costs of resources continue to go up, home automation will prove to be even more cost effective due to savings on energy and water.

According to the Ma Foi Randstad Employment Trends Survey (MEtS); about one million jobs were to be created in the organised real estate sector for a second consecutive year in 2011. This sector has also been witnessing a major shift in job preferences. Earlier, young B-School graduates would prefer the banking and financial services sectors. But in the last five to seven years, there has been a gradual shift to the real estate sector as well.

REWARDS
As a result of this sudden growth, and the vast number of PE-funded investments in this industry, a new lot of professional companies are entering the market. This bodes well for the industry, as traditionally, there have been very few professional companies in the real estate sector despite the continuing growth. The kind of turnover and top lines seen in real estate are difficult to achieve in any other industry. With the real estate sector growing exponentially each day, there are now a plethora of career opportunities - with high salaries - for working professionals. At Marvel Realtors, we’ve had talent joining from top IT majors and IIMs, as well as from other streams (financial/software sectors). The entry of such talent is further adding to the professionalism of the sector.

Despite the continued growth of the real estate industry, delivery is still an issue. Real estate players will have to benchmark their standards with those around the world. At present, luxury is seen to mean merely ‘specifications and amenities’. Going forward, this definition will need to broaden to include all aspects that add to one’s overall lifestyle, including aspects such as sizing, natural lighting, ventilation, environmental sustainability, and landscaping. With the consistent growth of the sector, foreign investors are also eyeing Indian property. Indian developers are also adopting the latest technology in projects that meet global standards.

Supported by round-the clock power/water supply, contemporary architecture, and state-of-the art facilities in aesthetically-designed environs, India’s real estate has now has much to offer.