Real estate investment tips – india luxury housing update

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Real Estate Investment Tips India Luxury
Housing Update
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The Unique Indian Scenario
Akin to other emerging markets, work and leisure
are rarely divorced from each other in India. The
fulfilment of lifestyle aspirations is not viewed
as separate from the source of the revenue that
enables it - be it driven by salaries or business
turnover. This has led to a rather unique
concept of luxury housing in India - homes with
high lifestyle quotients as close as possible to
the workplace. This naturally brings with it some
limitations in terms of locational ambiance,
especially in business-driven cities like Mumbai
and Delhi.
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There is less scope for large estate settings,
and the onus is on the aspirational quotient and
inherent importance of the location, apart from
the luxurious specifications of the homes
themselves. Because such luxury homes are
invariably centrally located, real estate prices
tend to be rather high.
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The Action Is In Mumbai And Delhi
Location continues to be the key factor for
luxury housing in India. This creates
considerable and focused demand for luxury
housing in certain areas, leading to scarcity of
available supply in geographically limited cities
like Mumbai. The supply that exists in
high-profile locations such as South Mumbai tends
to be held by institutions rather than
individuals, who release their holdings at
certain times.
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Interestingly, luxury projects in India are now
going vertical. While this is a function of the
city and micro market rather than of the
popularity of a configuration (for instance, in
Delhi's Lutyen's Zone, bungalows are the only
option) going vertical is the only option in
cities like Mumbai. High rise luxury projects
optimize the limited space available, and also
bring with them a sense of modernity therefore,
they wield their own kind of aspirational value.
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Infrastructure Is Cause For Concern
There are issues that will need to be addressed
in terms of infrastructure. Unlike in developed
countries, enforcing strict norms with regards to
structural safety, disaster, environment and fire
safety in high rises presents quite a challenge
in India. If we take the intense urban sprawl of
financial capital of Mumbai as a reference point,
it becomes evident that such parameters cannot be
over-emphasized. The same can be said for other
large cities, albeit to varying degrees.
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Apart from the fact that support infrastructure
is a huge challenge in most cities, we do not
have the benefit of facilities such a helicopter
evacuation in India. Another factor affecting the
increase of high-rise buildings in India are the
FAR (Floor Area Ratio) norms. FAR parameters vary
from state to state and are governed by the
respective city development authorities. Allowing
high-rises indiscriminately in certain city areas
is definitely asking for trouble, and will result
in an infrastructure deadlock and eventual fall
in prices.
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Tips For Luxury Home Buyers
Determine whether you are buying for self use
or investment Calibrate you budget according to
your actual need and long-term spending
power Reduce your dependence on a bank loan for
such high-ticket real estate by using your own
resources as far as possible Determine both the
existing and future importance and inherent value
of the location Pay only for what you get, not
what you are promised.
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(E).Mumbai, 400063Phone [phone]
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