In 2013, a report had slated that Mumbai was the sixteenth most expensive city in the world when it came to housing. South Mumbai is seen as the most posh area of the city with Malabar Hills, Cuffe Parade and Colaba topping the charts of residential housing. To own a house in these areas, one would have to sacrifice their income from two lifetimes almost. From the sound of it, it may seem as if living in these areas is luxury. However, would you consider a life in a 1BHK flat in Mumbai Cuffe Parade which is featureless, stuffy, and old and compact luxurious or would you rather sell the flat and move to the suburbs where you can live in a flat which has a lot of amenities on offer?
Because of the land shortage in prime areas of cities is becoming acute, housing prices are shooting through the roof and beyond the capacity of most to afford. Only the uber-rich can afford to buy apartments or bungalows in these areas. Most of them buy flats in these locations because of the quick access to CBD along and status even though they may not have the luxury offered by modern buildings on the periphery of the city. Luxury in such a case is vested only in the location’s affluence.
Those families that live in South Mumbai wanting to love to a larger place would necessarily have to move to the outskirts because larger properties may be non-existent or they may be extremely expensive for them to afford. One thing that must be remembered is that families that live in central locations had purchased their apartments or houses eons ago when property prices were affordable. In many cases, the properties have been passed down for two generations in a family. Most families are not in a position to generate income which would match the residential location.
In case a family wants to live a plush life, they can put up their existing homes for sale at the current market price and then move to the periphery in a spacious apartment which has a lot of facilities. For such a family, the luxury factor should increase dramatically if they opt for this move. Therefore, if luxury is dependent on perception, then its entire concept gets a facelift. Buyers who are already living in a luxurious apartment complex along the periphery of the city may have only a marginal budget to increase the size of their apartment. They can opt to sell their existing apartment and combine the sales proceeds with their marginal budget to buy a better space in a bigger apartment complex.
If luxury was limited to the idea of living in a supremely plush property in a central location of a city by spending truckloads of money, then only big industrialists and corporate honchos would be able to live in such properties. Nevertheless, luxury is actually relative from person to person. If one feels like upgrading their lifestyle and moving into a better and larger home which meets their requirements, then an option that gives them a superior quality of life is luxury for them.
In terms of real estate, luxury and premium are standardized mostly and they are quite rigid when it comes to ticket sizes, locations and amenities offered. However, market standards hardly account for the human factors such as perception. Therefore, if you look at it from that point of view, then hard and fast definitions of luxury cannot be applicable.
If you have a luxury 1BHK flat in Mumbai and have furnished it well, then you may wonder about the scopes of profit when you intend to exit the market. A lot of buyers have this confusion because they are unclear about what is termed as luxury and secondly, what are the profit margins if you make your house over. Realtors believe that luxury addresses are those which one would like to see outside compared to inside. A high ticket price does not define a luxury property. Location is of prime importance for defining luxury properties. A builder may sell you a 1BHK flat in Mumbai for crores but its exclusivity is needed for the perfect location.
Even though a central location is a big determinant of the premium quality of a property, if the environment is polluted, has a lot of noise and traffic right outside, then the address qualifies as premium only in terms of connectivity but not quality of life. A luxury flat also needs to be efficient in terms of spaces. In order to lead a life of luxury, you need to be living in a spacious apartment. If all the corners of the apartment are cluttered and offer no scenic beauty then the flat cannot be justified to be a luxury one.
Technology also acts as a major factor when it comes to luxury. Even though you may believe that high ticketing prices symbolize luxury, there is a twist in the tale. As disposable incomes are rising, prospective buyers are more than willing to invest their money in technology. Therefore, developers have to be careful about the flooring and fittings of the apartment. Other amenities such as green technology, intelligent lighting and sporting facilities also need to be accounted for. When buying luxury flats, you need to settle for the right property developer.
In terms of luxury apartments, it is better to be an end user because as a tenant you can get only 4 percent of the investment you make. Your living standard must not be compromised. Appreciation in capital value is the best way to earn profit.
Even if you have remodelled the interiors of your house, asking for better bargains may not be the best thing. Pumping in a few lakhs to do up the house the way you want to, was for your convenience and choice. The quality of the flat may also be better but it does not raise the profit margin much. The maintenance of these luxury apartments is also very important, even if you have spent a lot of money buying them. The cost of maintenance per square feet is usually between Rs 8 and Rs 50 for square feet.
Property density also defines luxury in some cases. If there is a 1 acre project going on, not more than 60 families should be accommodated on it because that would compromise on the amenities available to all the residents. This destroys convenience for all residents. Luxury projects should additionally offer security through electronic surveillance and other security measures. Luxury apartments are often a misused term and therefore, as a buyer, you must look into factors apart from the high ticket price.
Because of the land shortage in prime areas of cities is becoming acute, housing prices are shooting through the roof and beyond the capacity of most to afford. Only the uber-rich can afford to buy apartments or bungalows in these areas. Most of them buy flats in these locations because of the quick access to CBD along and status even though they may not have the luxury offered by modern buildings on the periphery of the city. Luxury in such a case is vested only in the location’s affluence.
Those families that live in South Mumbai wanting to love to a larger place would necessarily have to move to the outskirts because larger properties may be non-existent or they may be extremely expensive for them to afford. One thing that must be remembered is that families that live in central locations had purchased their apartments or houses eons ago when property prices were affordable. In many cases, the properties have been passed down for two generations in a family. Most families are not in a position to generate income which would match the residential location.
In case a family wants to live a plush life, they can put up their existing homes for sale at the current market price and then move to the periphery in a spacious apartment which has a lot of facilities. For such a family, the luxury factor should increase dramatically if they opt for this move. Therefore, if luxury is dependent on perception, then its entire concept gets a facelift. Buyers who are already living in a luxurious apartment complex along the periphery of the city may have only a marginal budget to increase the size of their apartment. They can opt to sell their existing apartment and combine the sales proceeds with their marginal budget to buy a better space in a bigger apartment complex.
If luxury was limited to the idea of living in a supremely plush property in a central location of a city by spending truckloads of money, then only big industrialists and corporate honchos would be able to live in such properties. Nevertheless, luxury is actually relative from person to person. If one feels like upgrading their lifestyle and moving into a better and larger home which meets their requirements, then an option that gives them a superior quality of life is luxury for them.
In terms of real estate, luxury and premium are standardized mostly and they are quite rigid when it comes to ticket sizes, locations and amenities offered. However, market standards hardly account for the human factors such as perception. Therefore, if you look at it from that point of view, then hard and fast definitions of luxury cannot be applicable.
If you have a luxury 1BHK flat in Mumbai and have furnished it well, then you may wonder about the scopes of profit when you intend to exit the market. A lot of buyers have this confusion because they are unclear about what is termed as luxury and secondly, what are the profit margins if you make your house over. Realtors believe that luxury addresses are those which one would like to see outside compared to inside. A high ticket price does not define a luxury property. Location is of prime importance for defining luxury properties. A builder may sell you a 1BHK flat in Mumbai for crores but its exclusivity is needed for the perfect location.
Even though a central location is a big determinant of the premium quality of a property, if the environment is polluted, has a lot of noise and traffic right outside, then the address qualifies as premium only in terms of connectivity but not quality of life. A luxury flat also needs to be efficient in terms of spaces. In order to lead a life of luxury, you need to be living in a spacious apartment. If all the corners of the apartment are cluttered and offer no scenic beauty then the flat cannot be justified to be a luxury one.
Technology also acts as a major factor when it comes to luxury. Even though you may believe that high ticketing prices symbolize luxury, there is a twist in the tale. As disposable incomes are rising, prospective buyers are more than willing to invest their money in technology. Therefore, developers have to be careful about the flooring and fittings of the apartment. Other amenities such as green technology, intelligent lighting and sporting facilities also need to be accounted for. When buying luxury flats, you need to settle for the right property developer.
In terms of luxury apartments, it is better to be an end user because as a tenant you can get only 4 percent of the investment you make. Your living standard must not be compromised. Appreciation in capital value is the best way to earn profit.
Even if you have remodelled the interiors of your house, asking for better bargains may not be the best thing. Pumping in a few lakhs to do up the house the way you want to, was for your convenience and choice. The quality of the flat may also be better but it does not raise the profit margin much. The maintenance of these luxury apartments is also very important, even if you have spent a lot of money buying them. The cost of maintenance per square feet is usually between Rs 8 and Rs 50 for square feet.
Property density also defines luxury in some cases. If there is a 1 acre project going on, not more than 60 families should be accommodated on it because that would compromise on the amenities available to all the residents. This destroys convenience for all residents. Luxury projects should additionally offer security through electronic surveillance and other security measures. Luxury apartments are often a misused term and therefore, as a buyer, you must look into factors apart from the high ticket price.
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