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.

Innovation- The Added Factor In Mumbai Real Estate

The Indian real estate industry has Mumbai as its hub of innovation. Migration of people from various parts of India, lack of space and increasing property prices have driven Mumbai’s property market to constantly innovate in every new project. This factor is solely responsible for keeping the real estate market in Mumbai moving.

The country head of Imperial Servcorp, Taranviir Kaur has said that innovation is the process through which enhancement in value can be achieved in commercial activities by introducing new or better goods and services and organizational and operational processes.  It acts as a significant factor for enhancing competitiveness, improving market share and quality along with lowering of costs. With changing market dynamics and business, the resources being pumped into business should also change. A good innovation is the introduction of virtual offices. It gives a corporate existence in the Indian CBD and flexibility for working from anywhere. It keeps overheads low and helps the corporate focus on sales. Trade experts belie that the process of innovation is ongoing over product development- construction, design and delivery. Technology is being employed extensively for making new benchmarks; projects are being styled bearing in mind environment friendliness and customer expectations. Therefore, no single factor can be emphasized upon. The process is complete and ongoing. Because of customer demand, real estate in Mumbai is coming up with newer technology and design. Compared to other metropolitan cities, Mumbai has the highest shortage of space which is why all builders are emphasizing on space based solutions.

Rajesh Krishnan of Brick Eagle Group has explained that builders are developing properties in the form of townships on the periphery of the city because it is more economical. Khopoli, Panvel, Karjat and the EMD or Eastern Mumbai District are hotspots for real estate development and they will benefit much due to the Delhi-Mumbai Industrial Corridor and the 12 lane multimodal highway from Virar to Alibaug projects.

Financial aspect is one of the key reasons for innovation where the entry point is being kept fairly low at 10 to 15 percent and builders also offer several schemes where buyers will have to pay less. Parallel funding also aids financial innovation and provides support for the growth of the real estate market. Discounts are one of the most common innovations in the market for real estate.

CFO and COO of the Wadhwa Group, Srinivasan Gopalan has said that all good developers are trying to innovate in some form or the other. Green projects, solar panels on the roof top and theme related styling are some of the innovative aspects that are being implemented much in real estate projects. Swimming pools were considered to be luxury earlier but nowadays they count as necessities. The parameters of innovation keep changing with time. A branded developer pays more heed to innovation than a non-branded one because they need to make sales and compete with other builders regularly. Lesser known developers cannot provide such amenities to customers. The models of innovation offer wider choice to customers as they can decide to pick a greener home with more amenities. Security is at its zenith and mechanization is there in everything. Modern facilities are being used to customize apartments according to requirements. Some 5 star hotels are also entering the realm of real estate and they are developing property in the form of service apartments. Some of them are also tying up with top rated hospital for providing 24 hours medical assistance to buyers.

Innovation In The Mumbai Property Market

The real estate market in Mumbai is much cluttered and much expensive compared to other metropolitan cities. This is the very reason why innovation is required because as commerce and population expands, faster modes of transport are required. President of Marketing at RNA Corp, Surjit Singh had explained that property market in Mumbai is unique in its own fashion. It cannot be compared with any other market as it has its own set of challenges. The challenges faced by the market make it more difficult to improvise and provide value to customers. Customers have become very demanding in their own way.

Development of something totally new or improvising on what currently exists is the essential ground work for innovation. Both builders and buyers are benefitted in multiple ways. Some of the innovations result in efficiency and better value, while some others can improve the living conditions and convenience. Automation of homes can spell savings and improved use of technology in security, apart from better style and convenience.

Tips for buyers to decide the premium value that corresponds with the innovation

Experts are very sure that Mumbai cannot go wrong in terms of innovation ever. One of the innovations, which is a good value for money to buyers is mechanised parking. Branded developers have the ability to provide such innovations which are technologically advanced. Buyers can recognize their wants and needs and match accordingly with the property options available to them along with the supportive facilities available with the alternatives. Innovations do not necessarily add cost to properties. On the contrary, they can bring down property prices owing to the use of modern technology. A premium is charged only if the input costs are impacted.

For selecting the property after evaluating the premium for innovation, Srinivasan has suggested that buyers should assess the property first and then the facilities provided. Keeping both factors in mind, buyers should take a decision regarding the property. Developers quote prices according to their condition of the market. Therefore, there will not be much shift in prices, except 2-3 percent give or take.

To be on the safe side, a buyer should judge his own budget and then take a decision about the suitability of the property. Properties that are near office areas are bound to be more expensive as residents would not need to spend much time commuting. Moreover, they would have other amenities such as restaurants, departmental stores and parks etc. nearby which are much important for quality living.