The global pandemic was acted as a silver lining for the residential real estate in India as many investors and buyers showed their interest in buying a house or upgrading their living space. Amid the boom in residential sector, the luxury housing also saw a soaring demand across the top cities. It was no less a big turnaround in the property market as luxury housing was one of the major losers after the demonetization move and had only fallen backward before COVID-19. However, with the pandemic hitting the world, the dynamics of realty sector have changed. The luxury real estate market has performed exceptionally well in the post-pandemic era across the country, surpassing the market expectations.
It is an undeniable fact that a luxurious home is something which you would cherish for lifetime. So, it is important for an investor to consider all the things before investing his hard-earned money into the prized possessions.
Here is the list of key factors that you should keep in mind before investing in a premium property.
1. Location of Luxury Housing
This is not an unknown fact that investment in a expensive home would require a hefty amount of capital and high net-worth individuals don’t have the shortage of huge funds. However, while making a selection of that suave and high-end property, the rich class should look for a prime location which has a good ambience. An under-developed locality is a ‘big No’ for investors. A luxurious apartment situated in a posh area and equipped with fancy infrastructure, smart devices along with better connectivity is a perfect choice for every new investor or homebuyer. Also, it will be worth spending a money for.
As we mentioned above location plays a great role during the investment in luxurious properties. Well, so does the connectivity quotient. The high-end property owners belong to the affluent class of society prefer to live in a prosperous and all-inclusive locale. Proper road connectivity, linkages with airport and railways stations along with metro links are the go-to demands for big property investors.
3. Purpose of Investment
It is needless to say that luxury properties come with a heavy price tag. Even if the investor has money to spare, the purpose of investment in a high-end property should be clear. It must be well-defined that the property is being bought for self-use or to generate rental income.
If the apartment is purchased for self-using purpose, factors such as building infrastructure and amenities should be checked carefully as it will impact the living standard of the residents. On the other side, if it is bought for earning rental revenue, the location of the property should be near to metro stations or the connectivity must be seamless.
For many people, this factor might come as a surprise in the list as luxury property investors do have deep pockets and they have a high budget at their disposal. However, all the financial decisions need to be evaluated properly as “Money doesn’t grow on trees.”
Even if the buyer has surplus money, he/she might want to avail cheaper credit to buy a certain apartment. As banks are quite liberal with HNIs due to their better financial conditions, they issue loans almost instantly. In addition to this, such high-end investors can also demand for the right price while purchasing the prized possession. Just because the investor has money it doesn’t mean he would buy the property at any price.