Why Buy Luxury Properties in Mumbai?

The lifestyle quality and pricing dynamics in Mumbai are very unique and are incomparable with other cities of India. The affordable luxury concept now includes all kinds of facilities which accompany the purchase of real estate Mumbai.

 
Premium Quality of Luxury
The justification of the premium localities in Mumbai’s western suburbs is losing logic. When the prices of newly launched properties in Wadala, Serwi, Lower Parel and Parel are compared to that of properties being resold in Goregaon-Andheri best, no margin is left when it comes to pricing points. Those employees spending more than 2 hours every day from this belt to the business areas of Nariman Point, Bandra-Kurla complex and Lower Parel have started moving to the regions nearer to work places.
It is mainly because no extra bit of property buying budget is included any more. Because the price gap is quite substantial, more house buyers are willing to relocate to central suburbs. Newer residential projects have been launched in areas such as Chembur, Ghatkopar, Mulund, Kanjurmarg and Bhandup are priced quite attractively. The property prices in these areas are almost 25 percent lesser than the resale properties in these localities which is bringing in investor/buyer interest.

This kind of trend is coming up in the western suburbs of Mumbai in the Andheri-Borivali area. For these dynamics, astute investors in the real estate Mumbai market are booking profits in resale options, which is why there are moving their investments into primary sales market and profiting from the price difference. As rental yields are lower in areas which have come up recently, investors are focusing more on rental earnings compared to capital ones. This is fitting in well with investment mantra of capitalization and price trends that are being practiced since ages with booking profits and switching assets that lead to increased growth. 

Reasonable Luxury
There are numerous ways in which luxury may be defined although there are a few key aspects in the forefront, such as availability of schools. No matter what income group parents belong to, they try getting their child admitted to a good school which is why their demand for good schools increases as their budget increases. Availability of water round the clock is another important aspect that buyers consider along with public transport such as bus depots and trains. 

A residential society which is spread over 3 to 5 acres offers facilities such as gym, clubhouse, tennis or badminton courts, swimming pools and other facilities. Those investing in these properties after choosing the locations do not want to leave their house on weekends for unwinding and they would rather hold get-togethers at home. In the past 2 or 3 years, these amenities are being innovated upon constants to attract more buyers.
The base cost of such housing complexes is the same as that of other normal projects in the locality although an annual membership fee or charge may be levied for use of these facilities. The charges are usually imposed by developers. Therefore, if you are going to be an end user, investing in these properties would be wise. Other buyers may have to pay partly or wholly the fee depending on the builder’s policy for the amenities on offer. The cost of maintenance of such projects is normally higher which is why monthly outgoings shall be much higher. 

A lot of times, buyers offer luxury amenities without charging anything extra. The amount payable for these projects is the same as the low cost projects in the locality. In such a situation, buyers should make adequate enquiry into the legality of the real estate Mumbai such as finding out the land holding, project approval, land title and much more. It may be so that the developer has some issues with getting the project approved which is why he is trying to offload it as soon as possible. In most of the cases, developers try recovering the cost of creating these amenities through higher fees and rates.

Certain luxury projects which are located in developed micro markets of Thane west and Kharghar, offer almost 10 to 20 percent higher rental earnings compared to other normal projects in the locality. The asking price for such projects may be higher in that case. Luxury properties are usually those whose location and amenities act as its USP. However, there is no one parameter which defines whether a property is a luxury one or not. For example, if a property is in a prime location but there are no amenities offered within the community and residents are subject to heavy pollution and honking, then the area only enjoys good connectivity but is not luxury one. 

Luxury real estate Mumbai are essentially properties which are spacious and allow buyers to do up their house the way they want to. Smart technologies are another parameter for defining luxury properties. Buyers are not hesitating to shell out larger sums if the complex has power and water back up, CCTV cameras installed for safety and other features. Green technology and intelligent lighting are some of the other features for which buyers are willing to pay large sums of money.
If you are thinking of buying luxury properties, it would be better if you settle as an end-user rather than an investor. Renting out an apartment will bring in only 4 percent of the money invested in it while capital appreciation would lead to higher profits in the long run. When you do up your interiors using luxury fittings and items, you should not expect your property to be termed as a luxury one because you are doing up the apartment according to your taste. 

With luxury properties, not only are the price tags high but so are the maintenance expenditures. For every additional square, you have to spend around Rs 8 to Rs 50 per square foot in order to maintain the property.
Within Mumbai, Vashi, Borivli, Malad, Kandivli and Mulund offer luxury properties within Rs 1 to 2 crores whereas on the outskirts, areas such as Dombivli, Kharghar, Ghodbunder Road, Kalyan and other similar areas offer luxury properties within affordable rates.

Where Should You Rent Houses in Hyderabad?

Most people working in the IT sector of Hyderabad live in rented accommodations as they have come in from different cities and have a chance of being transferred to another one. There are certain areas where rental values are higher than other areas because of their proximity to IT corridors of Hyderabad. For example, in Madhapur, the rental rates have gone up by 8 percent in the past 3 months. It is also a part of the top 10 localities in Hyderabad. The main reason why rental rate in this area is increasing is the presence of IT and ITeS companies.

Many IT hubs are located near the area such as those in Kukatpally, Kondapur, Hitech City and KPHB. Those working in the software companies based in these IT hubs prefer renting properties in this locality. The demand for property in Madhapur has risen because employees want to stay as near as possible to their work places so that travelling to work is not an issue. The walk-to-work culture is quite prevalent here. The other reason why demand has gone up in this area is the presence of big and small IT companies in this locality. This has multiplied the employee strength in these IT hubs, which has further boosted the demand for rental properties. Most people working in these companies are migrants who are uncertain about whether they will be staying here for long or not.

Currently the rental rates in this area are between Rs 12000 and Rs 16000 in a month. The demand for 2 and 3BHK apartments is quite high in this locality. Most employees like to make groups and stay which is why they look for larger apartments. Rarely do people prefer to live in a 1BHK property here. The rental rate for 2BHK apartments is between Rs 10000 and Rs 20,000 in a month whereas for 3BHK units, the rental rate for flats is around Rs 15000 to Rs 40000 in a month. People prefer to rent apartments in both stand-alone complexes and gated communities in Hyderabad. The starting of the metro line in this area has not affected the rental market although it has affected the capital one.

Future Prospects of the Rental Market

Most market experts believe the rent would increase more in Madhapur. The real estate in Hyderabad has been quite low in the past couple of months. However, now that a stable government has come to the centre, rental rates would increase further and the capital values would also be more.

Another area where the rental market is quite upbeat in Hyderabad is Ameerpet, where quality properties are available at lower rental rates. Ameerpet has a lot of training institutes for software in Hyderabad which is why it is preferred a lot for renting in the city. Moreover, there has been a drop of almost 8 percent in the rental values in the first quarter of 2014.

A lot of the employees and outstation students who work in the IT firms close by rent out the properties located here. The main reason why rental values have declined is that recruitment by software companies is not very high at this time. This has made the rental market a little slow which has led to a fall in the rental values of the area. Also, because a stable government in Andhra Pradesh is absent and the state being under President’s Rule, volatility has been introduced in the market which has caused some decline in the asking rate for rental properties. Those who live in this area have very low budgets and they do keep coming in irrespective of the falling political condition of the state. However, the employees of software companies here majorly impact rental markets in the area and dwindling demand from them has impacted the property market badly.

Another cause for the fall in rental values is the plentiful availability of rental properties in this area. Because Ameerpet is favourable to people who want to live on rental properties, investors lease out properties usually to house for rent in Hyderabad for gaining rental returns. This has caused an oversupply of house for rent in Hyderabad in Ameerpet.

All About Ameerpet 

To rent property in Ameerpet, you would have to spend anything between Rs 5000 and Rs 25000. Usually 1 or 2BHK apartments are preferable in this area. Ameerpet is a mix of residential and commercial properties. There are quite a few commercial businesses, textile and retail stores and IT companies located in this area. What makes Ameerpet famous among people, are the training institutes for software located in this area where individuals from all over the country travel to.

Easy connectivity to areas such as Banjara Hills, KPHB, Begumpet, Hitech City, Jubilee Hills, Somajigutta and Punjagutta is offered by Ameerpet. Numerous IT companies are located near it which employs hundreds of workers. The APSRTC buses can be availed for commuting to different areas of the city. Ameerpet shall soon have a metro station that would improve the connectivity of the area. Those dealing in rented properties in Ameerpet believe that the market would stabilize as the Lok Sabha elections have been concluded successfully and a stable and dynamic government has come up in the centre. As the economy takes on a faster growth trajectory, the market too would recover.

To find house for rent in Hyderabad, going online is the best option. Select the locality that you want to find a house in from the drop down list and the website would show you the best options available for you. The floor space along with the property layout shall be available to you for viewing. You can also determine the rental rate of the property along with the contact information of the landlord.

Prior to renting the property, you must visit it to make sure it does there are no damages. If the damages are manageable enough to live with, you should ask for significant discounts on the property and in case of excessive damage, you should skip the property.

Life Along the Mumbai-Pune Expressway in Kothrud

Till some time ago, Kothrud was a micro market that was less known to most people. But over time, it has emerged as a busy locality. The realty growth in the area has been mainly for its social infrastructure and location which is provided to the residents. The area was known as KothrudBaug previously and is located in the south western part of Pune. It comes under Haveli Taluka and Paud Road and Karve Road pass through this area. Kothrud is only 12kms from the Mumbai-Pune expressway and given the proximity of the area to the expressway, the locality has become popular among buyers.

There has been tremendous growth witnessed in Kothrud in the past 7 to 8 years and it has become a destination much favoured in Pune. The growth pace has been quite rapid and the area’s population has gone up manifold. Almost 90 percent of this area is developed and is now considered to be a densely populated suburb. This micro market is a good mix of affordable housing units and higher end housing areas. Currently, flat for sale in Pune Kothrud costs anything between Rs 9000 to Rs 10000 per square foot. In the year 2004, the rate that was going for properties here was around Rs 1200 to Rs 2000 per square foot. The appreciation of prices over the years has been by 11 percent almost. The rental rate of properties is around Rs 17 for a square foot. Roughly 93 percent of the properties available here are apartments. Most of the projects in this area fall under the Rs 7000 per square foot rate.

Currently, Kothrud is one of the most sought after destinations of Pune for the excellent connectivity offered to different areas of the city along with high social infrastructure. As it is an established location that has stand-alone housing projects along with older bungalows, newer unit supplies have been low in Kothrud in the past couple of years. The availability of limited land for newer developments has made builders redevelop the older bungalows and housing societies. The newer flats that are available mainly belong to the 3 to 4 BHK configuration whose sizes range between 1500 and 2,500 per square foot. The prices are between Rs 9000 and Rs 11,000 per square foot and their prices have gone up by 30 to 35 percent almost in the last 2 years mainly because of supply-demand mismatch.

In the past few years, Kothrud has turned from being an industrial area only to a very prominent end-user housing micro market in Pune. Karve Road and Paud Road make the connectivity from Kothrud good to central areas of the city while the Bangalore-Mumbai highway makes it easy to access the Hinjewadi IT Park from Kothrud.

Infrastructure 
There are many key infrastructure projects that are set to come up in the vicinity of Kothrud. The expansion of Paud Road is one of the infrastructure projects that will greatly impact property prices in this area. The twin lane road shall be widened to a six- lane road by the end of 2016. Companies such as Tech Mahindra, Cummins India, and Cognizant are located near Kothrud. The locality has got good social infrastructure and together with good quality civic infrastructure, Kothrud has become one of the most pursued localities in Pune.

The metro railway project that has been planned shall add to the real estate growth of this area. It is likely that Kothrud shall witness important infrastructural developments in coming future with the RamwadiVanaz section of the Pune Metro Phase I which would pass through Karve Road and Paud Road and have the main depot located at Kothrud. Moreover, the Pune Municipal Corporation has decided to add road tunnels to Kothrud for connecting to Baner, Pashan and Aundh for improving connectivity in these areas and ease traffic congestion. These infrastructural developments that have been proposed alongside the Paud Road widening that has been planned along with the current supply-demand mismatch aims to give promising outlook for housing realty developments in Kothrud.

The area’s social fabric is also one of the engines of growth in this area. Because of quick development in the past few years, Kothrud has a lot of educational institutes, MNCs, hospitals, banks and other companies. The quick development has led to a significant decline in the availability of land for more development. Therefore, a lot of development works have moved to Shivane, Warje and Bavdhan which have benefitted directly from the quick development of Kothrud. The extension of Paud Road from Pirangut and Bavdhan has also shown a lot of development.

Future Growth Prospects and Emerging Areas

Because of the dense growth in this area, localities such as Warje, Shivane and Bavdhan are witnessing rapid growth. Currently, the capital values of residential apartments in Kothrud are between Rs 9000 to Rs 9500 for a square foot but per square foot value is around Rs 5000 to Rs 7000 per square foot in Warje and Bavdhan. Comparatively, Shivane is a newer micro market which is being developed and its capital values are lower at Rs 2500 to Rs 6000 per sq. ft. A lot of the projects in these micro markets have 3, 2 and 1 BHK flat for sale in Pune although the demand for 2BHK flats has been highest here. Because of several factors that include higher demand from end-users, strategic location and overall development etc. Kothrud’s capital values may perhaps increase by almost 12% to 15% in the coming 18 to 24 months.

You can look up different properties in Pune for purchase online. Simply select a locality that you would want to own your property in and the website would show you the appropriate results for it. Buying property in Pune at this time is a good idea because Pune has shown the fastest real estate development and also property prices are increasing quite rapidly. Prior to purchasing property, you should make sure of the builder’s timeliness and delivery of projects along with the facilities on offer.

Should You Buy Property in This Stagnant Market?

Most people who intend to buy properties are in a dilemma about waiting and watching or going for the kill. Property prices are quite high although sales are not which is why buyers are waiting to see if the price of properties fall or not.

If you too are thinking of buying property, this would be a good post for you to go through

Investing when you have the power to negotiate 

The momentum in stagnant markets is always missing. Even though it makes sense to wait for a drop in price, if you come by a property which fits the bill of what you want, don’t hesitate to buy. Most buyers were speculating prior to the election which has led to stagnancy in the market. However, house buyers must understand that this is the ideal time to buy property in order to get a good deal. With piling inventory, developers are willing to negotiate the property prices.

When the real estate market turns out to be sluggish, it is a good time for buyers to move in. Many developers are willing to negotiate between 5 and 7 percent of the property price quite unlike active markets where the market is entirely controlled by sellers. Depending on the brand, buyers can look forward to festival discounts, well designed packages and free registration aside from other concessions.

Developers have already started offering freebies and discounts on their properties which would increase further as the year closes. The real estate market becomes quite dynamic during the festive season in India as buyers look forward to getting discounts and offers on their purchases and developers to sales that have freebies. Compared to the past 2 years, the festive season spells good sales this year. Because of lower buyer sentiments, the market has piled on lots of unsold inventory. Areas such as Gurgaon, Navi Mumbai, Thane, Greater Noida and Noida are expected to show hefty discounts on the properties available.

The developers are willing to negotiate with those who want to buy property this festive season in terms of price rather than offering cars, gold coins and foreign trips, which were offered in the past 2 years. For example, in the Delhi NCR region, most of the developers offer Possession Linked Plans or PLPs as festive offers where numerous schemes of payment are offered such as 10:90, 30:30:30, 30:70 and 25:75 etc. Many developers have given up EMIs till the time of possession for wooing in customers. Several developers are also looking to book flats on behalf of those who want to buy property for Rs 1 to 2 lakhs only!

Developers seem to be making a killing by offering cash discounts as more buyers are inclined towards these cash discounts over free gifts.  Almost 60 percent of house buyers would prefer to buy property in the festive season if cash discounts are offered on the property. This time is certainly a good one for buyers to purchase property because builders are willing to negotiate on the price of the property. Not only do buyers have a good chance of saving a hefty amount but also the freedom to choose from wide range of options because of the adequate supply in the property market. Once the inventory accumulated is exhausted, prices should increase as buyer sentiments are expected to grow. Therefore, you should certainly consider buying properties at this time of the year, when the market is slow. You should research enough prior to targeting a particular project because you have a good chance of getting great property.

Quality Properties are sold in a Slow Market

When the market is in the hands of sellers, almost anything is sold. At a time when everyone indulges in purchase of property, it would be hard to resist. However, when the market is slow, buyers have to be cautious about their choices and certainly judge the quality of a project before purchasing it. At a time when demand is high, builders seldom follow up with buyers.

What most buyers do not realize is that branding of a project begins right after the stage of possession. When you sell an apartment, you are selling lifestyles and dreams. Therefore builders must certainly take care to assess the quality that he is supplying buyers with and therefore must follow up buyers or look into complaints through consumer grievance cells. At a time when the real estate market is slow, purchasers can make out easily what is good for their lifestyle and taste.

Real Buyers are Active at all Times

Even though most analysts claim that real estate markets in cities are stagnant, the story is much different form that. At all points of time in a market, there are potential vs actual buyers. The actual buyers are people who have saved a part of their income through the years and research adequately into properties available. They consider purchasing decisions about properties for months almost because their savings would be entirely vested in this. Even though they invest their money wisely, they do not keep postponing their decision. They simply wait for good deals to come by.

Actual buyers usually have certain temptations that get them to the market. A lot of buyers look to purchase property during the Navratri festival. Even though they decide upon properties that they want to buy beforehand, they still wait around for good deals to come by during the festival. During slow markets, mostly investors sit out of the market because the benefit of purchasing the property is not there. End users are always active no matter what the market situation is.

Youngsters want quick returns on investment

Most youngsters nowadays are oriented towards investment. Instead of putting their money in gold which they consider as dead investment, they are investing in mutual funds, property and stocks. Since properties are secure investments, youngsters do not mind putting their money in them as their value would appreciate in the future. Moreover, realty prices have increased to a good extent in the past few years. Therefore, if you wait around for a faster market and right time, you may end up spending more than what you intended to for your dream home.

Rapid Growth Tier II Cities- Surat

Most people cannot afford to invest in properties of tier I cities such as Delhi, Mumbai and Bangalore because of the high prices of property. Migrants to these cities often look for avenues to invest back in their homeland which is why property prices in Patna, Varanasi, Meerut, Ahmedabad, Surat etc. are on the rise. These tier II cities are fast coming up as centres of commerce because both the central and the state government are taking an initiative in their development. A lot of them such as Kochi, Varanasi etc. are being developed into smart cities, replete with IT and manufacturing hubs and metro railway connectivity. Expats are mostly interested in investment in these areas.

Property in Surat

Till some time ago, Surat was a sleepy town of Gujarat but off late, the city has turned into a hub of sorts for diamond and textile merchants. Almost 92 percent of the diamonds in the world are cut in Surat and there are many cotton mills located in the city. It is one of the fastest growing tier II cities and its real estate has shown a steady increase in property prices. A lot of new age residential housing property in Surat are being developed that would cater to a wide budget range. Location-wise, a lot of areas have seen an increase in property prices. None of Surat’s micro markets have witnessed a drop and prices and some markets have even gone on to witness a rise of 10 to 12 percent, despite a sluggish economy. The growth figures of Surat have been rising steadily every year. In the past few years, residential prices in Surat have doubled almost and rents for commercial properties have gone up by more than forty percent. Investors have managed to realize their profits within 8 to 10 months of making the investment. The expansion of the retail, IT and indigenous tertiary and secondary industries hascreated excess job opportunities in Surat which is driving up real estate in the city. The affordability of land and availability of large land parcels along with the demand has fuelled up builders to develop residential communities in this area as well. Infrastructure in Surat is improving every year and with the availability of manpower, the real estate sector of Surat is being fuelled.

Another reason which is fuelling up development of property in Surat is the SNIA or SuratNavasari Industrial Area which has been proposed. This industrial area shall be developed by the DMIC or Delhi Mumbai Industrial Corridor. The development of industries will lead to not only commercial and retail development but also that of housing in the form of luxury flats, integrated townships, commercial towers and shopping malls. These real estate developments have also contributed to the increase in the price of property in Surat. Localities such as Hazira Road, Piplod, Adajan, Green City Light and Piplod have been the most transacted residential neighbourhoods in the past few years. The increase in price of these properties has been to the tune of 20 percent almost. The fact that luxury flats can be bought in this area for affordable prices has also brought in investors and buyers. Capital values in these areas are currently around Rs 4000 for a square foot.

The commercial sector of Surat is also growing and several companies have decided to shift base to Surat from Mumbai or Ahmedabad because of lower operational costs, good connectivity and availability of man power. The SMC or Surat Municipal Corporation has also taken good measures for the improvement of the transport link of the city along with civic amenities. Surat is one of the fastest growing cities within the Tier II bracket. Most NRIs have expressed interest in investing in properties in Surat.

The steady increase in prices of residential properties indicates healthy market. Larger numbers of properties were sold in the central districts of Surat because a large number of the local populace around the Fort area abandoned it for South West and West Zone. This has led to a rapid rise in property in Surat prices as these areas are being converted into commercial ones. With the real estate market of Mumbai and its peripheral areas becoming saturated, the only other area which can take on developed in located on the western corridor. The growth of Surat is guaranteed as a lot of black money from the textile and diamond industry is pumped into real estate for legalization. Even at a time when Ahmedabad is showing slowed down growth, Surat is developing at a rapid pace.

The growth of tier II cities such as Surat is what the government wants too as it would ease the pressure on larger cities and also prevent the large numbers of migration that take place every year. Surat is opening up to foreign brands for clothing and food and a number of malls are coming up in the area. Builders too are taking an interest in the property market of Surat and therefore providing flats which are replete with amenities. Some of the best builders are taking up projects in Surat and they are offering high quality amenities also such as swimming pools, indoor games rooms, landscaped gardens, cricket and football grounds etc. The affordable price of luxury in the city is attracting buyers to it. Real estate conferences held in the United States have also had buyers participate who were interested in Surat. A large population of NRIs are Gujaratis and they are interested in investing in their “soil”.

Property prices in Surat are expected to increase in the coming years too as commerce and trade expands. The infrastructure building works such as widening of roads, laying of sewerage pipes etc. are continuing in the city which are giving builders confidence about the real estate market. To buy property in Surat, you can go online on real estate websites and look up the property listings. Alongside listings, you can also participate in discussion forums and live chats to know more about these kinds of properties.