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.

How To Buy Real Estate In Mumbai

In the present scenario real estate is contending as a prosperous business. It is also one of the most lucrative business schemes now. The present economic condition of the nation encourages buying of real estate for the people. The cities of Mumbai, Delhi, Kolkata, Bangalore, Hyderabad and Chennai in India are some of the top profile cities for carrying out real estate buying and selling. If Bangalore ranks at almost the top position Mumbai too is not far behind. Whether buying a real estate for immediate use or for selling it later at the proper time, Mumbai is promising.

It is important to know how, when and where to real estate Mumbai. How profitable is it to involve in real estate at Mumbai leaving aside the other big real estate promising cities of India. Congested cities like Mumbai are seeing the scientific rise of suburban areas for real estate like Pune. A proper observation would reveal the correct status of Mumbai.

Mumbai is a large place which has been a witness to several historical incidents for many centuries. Mumbai formerly known as Bombay is made up of an isthmus joining a conglomeration of seven islands. This has made the south of the city unavailable for land. It is thus an island city on the Konkan coastline. Now the islands have joined to form one city. It is now the largest city of India with a population of about 17 million people. It is the most culturally accommodating and the greatest cosmopolitan city in India. Why is Mumbai a haunt for real estate? Mumbai contributes to 20% of India’s industrial outputs. It contributes to 40% total income tax collections and helps in 70% of capital production of the country. It is in simple words the economic hub of present India. With so much in its bag it becomes the haunt for real estate buyers.

Mumbai’s geographic conditions also make it suitable for settlers. The weather conditions are warm to moderate throughout the year. Being situated near the coast it is fairly pleasant all throughout the year. Most importantly, the geographic area serves as a boon. It being a natural harbour shelters India’s maritime cargoes. Thus it is an entry and exit point for foreign trade. Its international airport connects the world and transports in and out a huge population. Mumbai’s good transport system and way of living attracts people from all over to buy places here.

Some of the most important financial zones of the country like the Reserve Bank of India, Bombay Stock Exchange and National Stock Exchange are located in this city. Some of the top corporate sectors and the top educational institutions are present here too, ensuring a steady flow of job employees and students. Mumbai is also one of the leading and very popular tourist spots of India. This fetches great business prospects too. Not to mention, the country’s probably the biggest industry, the Bollywood industry competing with Hollywood. These factors have named Mumbai as India’s New York, pouring in a plethora of real estate seekers.

Before the Mumbai attack some years back, the country faced a global credit crisis. Investor interest was also slow. The attack caused a jolt. It is believed to have a huge impact on the real estate market in the city. The cross border business declined there was a decline in real estate market according to experts’ words. However, the place had seen a revival in real estate soon after. Later, the industrial slowdown has not been able to cause any big impact on the real estate market. The ultra high end of the city has almost remained untouched by this slowdown. Now there is competition between overseas investors and high net worth individuals for the ultra high ends.

One of the mostly favoured areas in Mumbai is old South Mumbai. This comprises of Altamount Road, Peddar Road, Carmichael Road, Kemps corner, Nepean Road, Breach Candy, Malabar Road, Walkeshwar, Colaba, etc. South Mumbai has a lot of availability. Here new and old both types of apartments are available. Those who require schooling availabilities choose Bandra-Juhu locality over South Mumbai. The next important location on basis of preference is the belt comprising of Lower Parel, Parel, Mahalaxmi, Sewri, Worli and Prabhadevi. These areas are generally preferred by those people working in Central Mumbai and Multinational Companies willing to relocate. Here the buildings and apartments are brand new. The other important locations mostly for management sector people are the areas from Bandra, Santacruz and Juhu, Khar and Powai.

Some of the top high profile buildings like American School of Bombay, British High Commission and American Consulate are situated in these areas of Juhu and Bandra. Many good quality semi new buildings and apartments also lie in this zone making it a desirable and most sought after places at Mumbai and a favourite among Expatriates seeking relocation. Borivali and East and West Andheri are those localities where individual leasing activity is most observed.  Most of the owners of premium apartments prefer renting their apartments to employees of companies and to companies themselves. This is because default risks in these cases are almost nil.

Mumbai being a land of various industrial sectors, the leading one being the film industry or the famous Bollywood industry the demand for a place is real high. There are also good educational sectors and job centres in Mumbai and nearby, making it a place of high demand. The demand for space here is not temporary but a permanent and ever growing issue. Land in Mumbai is available at a premium. As a result the outskirts are developing themselves at a rapid rate to provide accommodation for aspiring dwellers. The south of Mumbai is the most sought after places for real estate. Looking for real estate at these outer areas is a good idea of sorts.  These areas would not only develop largely soon but also bring a good return in the near future. Prices would often come up and down and it is to be judged well before hand to have a great buy.

Two Places Where You Want To Live In Mumbai - Powai and Juhu

Mumbai has always been an area where the influx of people is much more than the space available for living. Only the rich and affluent can afford to live in areas such as Walkeshwar, Peddar Road and Nepean Sea Road. The middle class citizens of Mumbai are pushed towards the northern and eastern fringes of the city such as Borivali, Kandivali, Chembur, Malad, Ghatkopar and Mira Road. Of these areas, Powai has a rapidly growing real estate sector. A large number of noteworthy builders have their projects going on here. Both rental rate and the per square feet cost of flats in this region are rising manifold, which makes it an interesting area for investment.

Powai

 Located in East Mumbai, Powai is a suburban area which has seen rapid growth in the past few years. There has been a rise in the rental rate of this area by almost 10 percent in the past 3 months. Most people who rent properties here are involved in jobs and services.  An active broking firm in Powai opines that the capital values of apartments and properties are going through the roof. People find it difficult to buy apartments in areas that they want to. The areas that fit their budget are located much away from their workplaces. Therefore, they are left with no other option except to rent such apartments.

Almost 60 percent people looking for flats in Powai have families while the rest are bachelors. Sometimes newly wedded couples also come flat hunting in Powai. Mostly 2 and 3 BHK apartments size command rent between Rs 30,000 and 35,000 in a month are demanded in Powai. Many multinational companies have opened shop here which is why the demand for rental properties has increased in Powai.

Closeness to various commercial areas

 Powai has one of the largest special economic zones or SEZ in Maharashtra where various MNCs are operational. As it is the closest residential area and has developed amenities and infrastructure, Powai fulfils the demand for housing of the workforce employed in this region.

Powai has a large commercial set up along with various IT parks. Most of the population belong to the high income segment who look for plush and luxurious options of housing which are also close to other facilities and their place of work. Renting property is the bigger norm in Powai as property is very expensive here and the ones that are affordable are much away from this area.

Connectivity in Powai

 Significant areas of Mumbai are connected well with Powai. The Vikhroli-Jogeshwari Link Road that connects the Western and Eastern Express Highway goes via Powai. This is one of the biggest advantages of the location.

Apart from the roads, a wide network of non AC and AC buses ply in the area which are operated by the BEST transport wing for travelling towards Thane, Navi Mumbai and Central Mumbai. The Vikhroli and Kanjumarg railway station are located in Powai while falls along the Mumbai Central line.

Another realtor opines that connectivity is one of the main reasons for people opting to stay in Powai. The region is very near the Mumbai International Airport and people who frequently travel by air find it convenient to stay here than South Mumbai, which is equally posh.

Green Surroundings

 The environment in Powai is very serene and acts as a factor for improcing the demand for housing here. No other area in Mumbai shares the dense green cover that Powai has

Individuals looking to earn well off their investment can buy flats and apartments in Powai. According to a property index, Powai yields healthy returns on rental property. The area ranks number one among the top ten preferred areas for renting in Mumbai. According to the present capital values of the area, if an investment of Rs 1.5 to 2 crore can be pumped in, then Rs 40,000 to Rs 70,000 can be easily earned in a month on the rented out property.

The rental cost of a 1BHK apartment here is between Rs 15,000 and Rs 35,000 per month, while 2BHK apartments are rented out for up to Rs 70,000 in a month. If you have a 3BHK apartment here, then you can earn up to Rs 2 lakhs per month as rent. If you want to invest for earning an extra income, then residential apartments in Powai are a good source.

Powai and Juhu saw the value for rental apartment increase by almost 10 percent in the quarter of January and March 2014. Just as Powai offers proximity to office locales and other areas such as the Mumbai International Airport and Navi Mumbai, property prices in Juhu are rising because of the infrastructure on offer and the proximity to the sea.

Juhu

 There are very few offices and corporates located in Juhu which is why this area is considered completely residential. Families prefer to stay here because of the location of several colleges, schools, universities, banks, hospitals etc. according to local brokers.

During the month between January and March, the number of people renting out properties increases because of upcoming holidays and examinations. People look for houses and apartments that are close to colleges, universities and schools according to another broker operating in this area.

The rental rate of a 2BHK apartment in Juhu is between Rs 60,000 and Rs 75,000 in a month. Almost 50 percent of the residents prefer to live in a 2BHK set up while 30% prefer a 3BHK apartment and a mere 20 percent want to live in 4 or 1 BHK apartments here.

Mostly people belonging to the business class or working in the film and television industry live in Juhu. People who are employed in various companies cannot afford to live here.  Brokers of both Juhu and Powai maintain that during the Lok Sabha electrion there may be stability. However, post elections, the rental rate of properties is bound to increase. Therefore, this is the right time for people looking to invest in real estate to strike for the kill.