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.