The impact of the economic downturn was limited in India and the bounce back is getting more pronounced as recent figures suggest. The luxury housing segment was hit the hardest, perhaps, by the recession as several projects were delayed, stalled or even abandoned. But with the Indian economy gaining back its momentum things are changing fast. There are plenty of buyers in the market willing to pay $1 million or more for their dream homes.
The developers and builders are rushing to meet this demand. The early 2009 situation has been completely reversed and there are over a dozen super-luxury apartment complexes are being built all over India. In February and March 2009 the developers were offering a discount of 30 to 40 percent in order to find buyers and to keep the cash flow going. The situation has changed so dramatically that developers are trying to outdo each other in breaking fresh ground in luxury.
The experts of the industry, Poonam Mahtani, national director of Colliers International (India) Property Services Pvt. Ltd. And Sanjay Dutt, CEO of Jones Lang Lasalle Meghraj, caution that the prices have reached the near peak levels of 2007 and the dramatic increase in supply is bound to create downward price pressure on these apartments. Some developers are making their projects very elite and exclusive by controlling who lives in these apartments. You might not be able to buy an apartment in these projects even if you are willing to pay as some of the projects are invite-only.