In
Indian real estate, 'luxury' is by far the most-abused word by
residential project developers. Any project offering basic amenities is
classified as 'luxury' in marketing materials, advertisements and
pitches. We have actually seen projects wherein 1 BHKs are being offered
along with 2 and 3 BHK units being touted under the luxury tag. What is
wrong with this picture?
In
the first place, luxury living in any context must necessarily involve
generous living spaces. Going by that alone, a 1 BHK cannot qualify as
'luxury' by any stretch of imagination. Secondly, the interpretation of
luxury in the Indian context also includes an element of exclusiveness.
In other words, the buyer of a luxury apartment - apart from superior
amenities and facilities - also expects to live in a project which
offers a certain socio-economic standard as a neighbourhood. Therefore,
when a project offers one-bedroom apartments, it automatically
disqualifies itself from the 'luxury' classification.
Given
that developers will continue to call every project luxurious, it is
important for buyers to understand the definition, context and meaning
of luxury in Indian residential real estate. But before this, let us
first examine the investment dynamics of genuine luxury homes.
Buying
a luxury apartment for self-use already involves the need for multiple
checks and validations in any case. However, when it comes to buying
such an apartment for investment, the need for 360-degree due diligence
is even higher. After all, the final objective is returns on investment.
If one is considering investing in a luxury apartment, one must
understand what the hallmarks of genuine luxury in residential real
estate are:
Location:
This is one of the most crucial parameters. Though central location is
certainly an important qualifier for the luxury tag in India, a project
that stands at a central city junction beset with traffic congestion
does not provide a luxurious experience. No matter if a project is
'normal' or 'luxurious', it is not home if one cannot reach it or get
out of it. Investors need to look at many location parameters, such
whether the project benefits from approach roads that allow for
convenient vehicular egress and ingress.
Also,
very few people buy luxury homes and then hide them from the rest of
the world. Most owners of such a home want others to see and admire
their properties, and to entertain people there. Noise and air pollution
apart, this purpose is not achieved if the project lies in a chronic
traffic gridlock zone. Finally, the owners themselves must have ready
access to markets, schools, colleges, hospitals and their offices. And
before we forget - the most spectacular edifice of luxurious living
falls flat on its face as an investment bet if it is located in a
crime-ridden area.
The
view available to the project’s occupants is also very pertinent. A
project may be genuinely luxurious in its internal specifications and
amenities. However, if it overlooks a slum or congestion-prone highway, a
graveyard or a hospital, both rental and resale potential take a
beating. The availability of a rooftop swimming pool and a Jacuzzi in
every bathroom will not make a difference - a very basic ingredient of
the luxury experience is unavailable.
Floor-to-Ceiling Height:
This is one of the most important parameter to evaluate a project's
true 'luxury' value. If the floor-to-ceiling height is less than 12
feet, the luxury feel is severely compromised. Moreover, apartments with
low ceilings do not lend themselves optimally for tasteful interior
decoration.
Project Density:
This means the number of people living in the project. There is no
ideal thumb-rule for this parameter - however, it is generally
understood that a one-acre project should not house more than 60
families. Anything more means that the project does not qualify as
'luxury'. This is because the available amenities are shared by too many
people, destroying the project's ambience, exclusiveness, convenience
and charm.
Parking:
Again, there is no specific yardstick by which to measure parking
sufficiency. The commonly followed norm is that the number of bedrooms
in a project should equal the number of available car parks. A 3 bedroom
apartment should therefore have three parking spaces within the
project. Though many luxury projects in the larger cities now offer
puzzle-type mechanized parking, the fact is that HNI buyers and tenants
actually prefer normal or stack parking.
Elevators:
The mere provision of branded elevators does not suffice in a luxury
project. The project must also have service elevators with separate
entries, to ensure that domestic help and external suppliers do not
populate the elevators and lobby being used by residents. Investors must
also ensure that the elevators are spacious enough to accommodate a
stretcher.
Security:
Inhabitants of a luxury project do not expect to have to install ugly
security grilles over their front doors and windows. They expect to have
the assurance that their families and property are safe in all
respects. A genuine luxury project has uncompromising human security as
well as electronic surveillance and safety measures firmly in place.
As
is evident, it takes more than a mere word like 'luxury' to place a
project head and shoulders above the rest - and thereby make it a
worthwhile investment option. While one cannot stop developers from
misusing the luxury tag, it is certainly possible to understand what
true luxury - even in the Indian context - really is.
Read more at: http://www.moneycontrol.com/news/real-estate/parameters-to-evaluateluxury-apartment-before-investment_999225.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/real-estate/parameters-to-evaluateluxury-apartment-before-investment_999225.html?utm_source=ref_article
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