uber luxury projects: Supply woes hit uber-luxury residential projects
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Real estate builders use imported faucets, wash basins, western commodes, bidets, shower enclosures and bathtubs in the uber-luxury homes they sell. The Indian suppliers of these fitments mostly source them from Italian and German manufacturers, some of which also have plants in China.
The disruption in supply started with the Covid-induced lockdowns, and with China shutting down intermittently, things never got back to normal. This was followed by the Russia-Ukraine war, which aggravated the supply problem.
“While the increasing cost of cement and steel was impacting the business, the delay in delivery of bathroom fittings have added to the pain,” said Vaibhav Agarwal, COO of LFW Homes, which is currently building premium floors and bungalows in south Delhi. “At our projects, construction has been completed but we are unable to do interiors due to lack of products.”
Agarwal said he recently convinced a homebuyer to move into his house and have the bathroom fittings installed later.
Bathroom and kitchen fitment suppliers ET spoke with said the waiting time has increased by up to eight weeks, and that several home owners have opted to purchase these contemporary fittings from the black market.
“There were thousands of containers that were stuck at various places. So we have a fair delay of approximately two to three weeks,” said Gaurav Malhotra, managing director at Hansgrohe India, Indian subsidiary of Germany’s Hansgrohe Group, a kitchen and bathroom fittings brand that has a plant in China.
“The good part is we stock a fair bit of material in India. We divide our product portfolio into some items that we stock, which we have over the years seen and analysed as the items that are needed quickly. And delivery of items that we import and sell depends on the kind of products and the supply chain from where it comes.”
A boutique developer based in south Delhi said
he recently delivered a home with the option of completing one bathroom when the fittings arrive.
Varun Gupta, director of Bathline Indian, which imports premium bathroom fittings, said, “More than the Russia-Ukraine war, the issue has worsened because of shipment getting stuck. The demand has gone up during Covid-19 due to ultra HNIs buying a second home or a bigger home. Buyers from Mumbai and Bengaluru come to our Delhi branch to see the products but there is a delay in delivery.”
Bathline Indian also exports the fitments it manufactures.
ET had recently reported about how India’s wealthy are increasingly investing in luxury properties amid the pandemic.
Over the last few months, India’s real estate sector has seen the uber-rich acquire luxury bungalows and apartments for Rs 50 crore and more.
The situation is similar in the luxury holiday home market.
“Majority of our suppliers are facing issues and the cost of import has also increased. Apart from fittings, delivery of carpet is also an issue,” said Suraj Morajkar, managing director of Sun Estates, a luxury property builder in Goa which has developed mansions for many celebrities. “But we hope this is only a short-time disruption.”
Some brokerage firms said they are hopeful that the situation will improve soon, as the people who are buying property now would like to move in by Diwali, and the super-luxury fittings are usually ordered two months in advance.
“Ultra HNIs are very careful about the products they use at home. They invest time and money in the interior. But the supply issue is neither in the hands of the developer nor can the broker help,” said Rohit Chopra, founder of Southdelhiprime.com, a boutique consultancy firm. “
This is affecting sales as buyers wanting a finished home.”
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