Affordable housing has slowly crept up the real estate ladder to take center stage in the past few years. With the aim to provide ‘Housing for all by 2022’, the Indian Government has given a considerable boost to this real estate segment, leaving luxury housing projects far behind.
This has initiated a sense of uneasiness in the developers of this segment, and the past statistics are not helping either. Anarock DATA claims that the supply of luxury housing (priced over 1.5 crores) in 2017 has decreased by a whopping 49% as compared to the preceding year.
So, an obvious question presents itself – should developers move away from this segment to retain profitability?
The answer is more complicated than it appears. Indian society is bubbling to the brim with a new economic class of the nouveau riche and these entitled professionals and entrepreneurs are not ready to punch below their weight class.
Aiming for aspirational luxury that can be ‘experienced’, this millennial millionaire generation is settling for nothing less than the best amenities in living – be it designer aesthetics or the fully automated smart homes.
According to 2017 numbers, India is home to over 300,000 millionaires and is expected to reach over 950,000 by 2027. Owing to this kind of growth in the number of the high net worth individuals over the next few years, it seems unlikely that luxury housing sales are heading for a slowdown.
Which brings us to the main question:
What are the steps that developers should take to ensure a boost in the sales of their luxury housing projects?
Let’s take a look at a few points that offer an objective solution:
Developers can boost the sales of luxury housing projects by engaging the right homebuyers through events, services, and discounts. This will create a lasting bond between the stakeholders and increase the chances of referrals.
Owners consider real estate a safe investment in India, considering the passive income it can generate for them. As a developer, this provides you with the perfect opportunity to approach homebuyers for an upsell; an easy exercise for your brand through loyalty programs and engagement activity.
So, do not worry if you are experiencing slow sales for your luxury inventory; it is only a matter of time before things look up again. And if you are willing to take a step forward and control the situation, then get in touch with Loyalie. We can help you find out how the right loyalty and referral program strategy can make a difference.