What Is Affordable Luxury?

By Mr. Arvind Jain,

Pride Group

In simple terms, an affordable luxury project is a premium housing project is one that is in the financial reach of a much larger buyer segment than just HNIs and ultra-HNIs. A relatively recent market offering, affordable luxury projects are an important stage of necessary evolution in the Indian real estate industry. 

Many developers successfully make their mark in the luxury homes segment. The limitation is that they are catering to a class of buyers who comprise less than 10% of the total market.  Developers who also seek to cater to the larger home buyer segment market must do so without compromising their hard-earned premium positioning. 

It is no secret that the highest demand in Indian real estate comes from the mid-income segment of buyers, but these buyers also aspire for a more luxurious living experience. Developers can cater to this demand by innovative scaling - and those who manage to do so create a a win-win situation for everyone.

How Affordable Luxury Works 

Arvind Jain, MD
- Pride Group

An important dynamic for affordable luxury housing is that luxury is always relative, and in the eyes of the consumer. The imperative in affordable luxury projects is to provide a distinct luxury flavour and experience without pricing the project out of the very important mid-income segment of buyers. This can be achieved in a number of ways. 

Luxurious living always involves larger spaces and the provision of exclusive features such as reserved parking, advanced security, desirable common amenities such as swimming pools, well-equipped club houses and smart interiors.

However, super-expensive luxury projects also need to be in the most expensive locations and showcase the priciest international designer brands in fittings, flooring and overall decor. All this reflects on the bottom-line for buyers. However, since such projects are in any case targeted at the ultra-rich, they still sell.

Important Differentiators

Affordable luxury project provide a comparable luxury experience by leveraging the benefits of less expensive land in other locations, as well as the quality of high-grade brands that in all ways match their more glamorous counterparts in style, efficiency, durability and advanced features without the staggering costs involved. 

Affordable luxury becomes even more feasible to offer in large townships, because in these mega projects developers can additionally leverage the advantages of economy of scale. At rates which are only marginally higher than normal projects in these locations, affordable luxury homes located in such a setting also bring with them the matchless benefits of integrated township living to the table.

A Unique And Growing Segment..

A very important factor in affordable luxury projects is that they do not compete with projects aimed at ultra-HNI buyers. They are conceived and designed to meet the aspirations of middle-income buyers who want to upgrade to a superior lifestyle.

Such buyers are less concerned with designer brands and are more concerned about shifting their families into bigger, safer, more beautiful more comfortable and conveniently located homes that they can purchase through a home loan. For these buyers, luxury is not a standard - it is an experience.

There are many market precedents that prove that making luxury affordable to a large segment of buyers works very well indeed in a country like India. If we look at the cellular mobiles market, the concept of affordable luxury becomes clearer. 

While Apple seems to have set the highest snob appeal standard with the iPhone, brands like Samsung have managed to capture the larger market with the cheaper, more efficient and more feature-rich Android platform.

Today, Samsung smartphones are a new standard of luxury that everyone can afford. Going by the same parameters of giving buyers what they want rather than what artificially created standards of luxury dictate, affordable luxury homes bring luxury living to the middle class.

Thanks to the fact that many leading developers have now found this unique middle path to expand their buyer base, luxury township living is no longer the exclusive domain of the super-rich. Though premium in every aspect, these projects are a residential dream that is very much within the reach of the aspiring middle class.

About the author

Mr. Arvind Jain is Managing Director at Pride Group, Pune

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