Demand for branded residences is proportional to the uniqueness of the concept and the synergy it shares with the consumer. ANURADHA RAMAMIRTHAM examines this trend
With strong economic growth in the last decade and the Indian consumers' increasing exposure to global standards of living, the luxury residential category is just about coming of age in India. Over the last eight years, Indian consumers have started discovering the art of fine living and designer residences. With the foray of top international luxury brands, the global Indian is aware of which car he wants to own and which style of clothes he wants to wear. He now seeks the same branding experience in his home too. According to R Karthik, chief marketing officer, Lodha Group, the market size for luxury real estate is Rs 7,500 crores, which is 25 per cent of the total luxury market, and is growing at 20 per cent year-on-year.
The concept of branded residences isn't a new one internationally or even nationally; however, it is an emerging segment. "Luxury aspirations in India's financial capital are obviously geared towards brands, which is why Swiss watches and designer jeans sell well, even if their high-quality but indigenous counterparts don't," points out Anuj Puri, chairman and countryhead, Jones Lang LaSalle India.
While conceptualising a branded residence, the developer typically evaluates parameters like unique experience, functional delivery and consumer acceptance. When it comes to using international brands in the context of any product, the first and foremost requirement is the legal right to do so. This does not come by easily and involves an extensive approval process to be completed with the brand owner. "Part of this process is the brandowner's requirement for the product in question to measure up to the stature of the brand. Developers of branded home projects cannot afford to cut corners on quality for this reason alone. The most important aspect of such a relationship therefore, is the developer's ability to deliver on the quality requirements and the overall image of the brand," elaborates Puri.
An established and recognised brand not only inspires confidence in the project but also ensures that features like comfort, quality and status symbol are attached with the project. Branded residences epitomise aspirational living and are hence, expected to attract customers automatically. "Recognition of the pressing need for children to give up e-age gadgets and engage in a more healthy life is what inspired us to tie up with Walt Disney for our 23-acre project Sunteck City in Goregaon west. The Disney character appeal transcends all ages. Whether it is mickey mouse, spiderman or a princess, these characters do not merely showcase a project but also instill the right childhood environment that kids must grow up in," says Kamal Khetan, CMD, Sunteck Realty Ltd.
A report on 'Branded Developments' by Knight Frank highlights the fact that branded residences are witnessing increasing demand globally and command an average uplift of 25 to 40 per cent compared to equivalent non-branded schemes. "A similar situation is seen in Mumbai, with 'the yoo inspired by Starck residences' at Lodha Evoq commanding a premium of 27 per cent over other non-designer products within the New Cuffe Parade project; while Lodha Fiorenza with 'signature residences by Jade Jagger for yoo' is selling at a premium of almost as much as 50 per cent compared to other projects in the area," informs Karthik.
"We focus on bringing the best to our customers by working with renowned names in design, architecture and lifestyle services. Armani/Casa, the interior design studio founded by Giorgio Armani, is a fitting addition to the list of professionals associated with the World Towers project. Philippe Starck is renowned across the world as the 'God of Design' and his bold, eclectic designs show us why. Lodha Evoq is Philippe Starck's first project in Mumbai and he has designed the residences and common spaces. Lodha Fiorenza features designer residences by Jade Jagger for yoo. It fuses Jagger's aesthetic of contemporary design with jewelled tones and rich textures inspired by India's grand heritage," shares Karthik.
India's appetite for super luxury residences is increasing, with the growing number of HNIs. Pune too, has a sizable market for luxury homes with buyers being accustomed to real estate offerings across the globe. "The first branded project with Trump was recently launched in Pune with Panchshil Realty. The project is beautifully designed and is a great offering for the Pune luxury market," explains Kalpesh Mehta, partner, Tribeca.
Along with the brand and design, the buyer also needs to be impressed with the tangible benefits of luxury homes. "The trend in luxury homes is no more just in terms of quantity of space but also quality of space, value additions and details. For example, earlier the definition of luxury was anything around 4,500 per sq ft, which is now defined by not the size but the offering. Like in the Swarovski-branded project Amanora in Pune, a 2,000 sq ft well-designed 2/3-BHK is more appreciated and fits the requirement of the end-user," opines Anmol Haval, head-sales and marketing, City Corporation Ltd.
Luxury homes are commonly perceived to be more driven by the interiors of apartments whereas, the architecture of the building plays an equal or higher role to create a sense of uniqueness and pride in owning the apartment. For instance, Amanora has collaborated with architect MVRDV of Holland to design and deliver the Future Towers. The Gateway Tower (Swarovski) by the same realty company has an association with P&T, Singapore and holds the distinction of being the tallest tower in Pune and the first real estate residential project in the world by Swarovski.
Luxury cannot be perceived in isolation; just like a Ferrari is useless without good roads to drive on, the location and the environment play a major role for luxury residential projects. Basic infrastructure like road, water, electricity, traffic movement around the project and its landscape are crucial for the project's success. Buyers of branded luxury homes can expect to pay a premium of 25 per cent or more over the luxury residential rates for a given location. Again, the premium will depend on the brand's international stature, for which there is currently no scale of reference when it comes to real estate. A buyer is expected to pay for the privilege of a brand and in return, he expects to get what he has paid for, and more.
source:- http://epaper.timesofindia.com/
