By Runwal Group Posted Aug 21, 2018 In Residential properties
Regular homes have always been the popular choice with middle class and salaried individuals living in Mumbai. However, in the last quarter, the luxury real estate market has seen a significant growth with the resurgence of luxury homes. Real estate experts believe that this could increase the demand for housing for both the segments, in Mumbai.
While comfort, convenience, and quality broadly define luxury apartments, regular apartments have their own advantages. According to recent statistical data, almost 60% of first-time homebuyers still opt for regular apartments. Most of us would see money as the differentiating factor between the two, however, experts believe there is more to it.
So, what are the other distinguishing factors between luxury and regular homes in Mumbai?
Cost is probably the primary difference between a luxury and regular home. A luxury home project in the prime locations of Mumbai would range anywhere between Rs. 25,000 and Rs. 1.10 lakh per sq.ft. and would cost anything above Rs. 2 crore depending on the carpet size and location. Of course, it may go higher as well depending on the kind of apartment you’re looking to invest in and the amenities that come with it. The annual appreciation rate of a luxury home in India is in the range of 3% to 7% and fetches 40% higher rentals than your regular apartments. In Mumbai, you will find rentals on luxury apartments to be on the higher side as well. The price of a regular apartment in Mumbai is usually in the Rs. 50 - 90 lakhs range, again, depending on the location and amenities. However, the annual appreciation of regular apartments ranges between 2% and 4% which is lesser than a luxury apartment.
If you invest in a luxury apartment in an upscale neighbourhood in Mumbai, you’re investing in a performing asset. For those who are always on the move, true to the city of Mumbai, they prefer affordable and regular spaces which earns investors a steady rental income as compared to rentals from luxury apartments. Another differentiating factor in terms of investment value is price volatility. The price of a luxury apartment will tend to fluctuate more than a regular, mid-segment apartment which is stably priced, making it a rather attractive option for anyone who is looking for an apartment in Mumbai.
Location And Neighbourhood:
You will, more often than not, find a luxury apartment in an upscale neighbourhood in Mumbai. Real estate developers, not just in Mumbai but across India, cash in on the neighbourhood’s features to attract a more defined clientele.On the other hand, you will find regular apartments in Mumbai in newly formed neighbourhoods in the western and southern suburbs of Mumbai such as Vikhroli, Borivali and Malad with largely public amenities and community spaces.
The carpet size or area of a luxury apartment in Mumbai is spread over 1500-1800 sq. ft. with expansive kitchens, attached balconies and more.A regular apartment in Mumbai however ranges from 700 to 1200 sq. ft. and is usually compact in size.
Any luxury apartment in Mumbai will offer you an array of amenities that are designed for your ultimate comfort. From Olympic-size swimming pools, grand clubhouses to a sprawling landscape nestled in the wealth of the nature, you will be spoilt for choice. Another characteristic of luxury apartments is its top-of-the-line features which are seen in every luxury apartment project in Mumbai.
In Mumbai’s regular-sized apartment, you will usually find standard amenities that include a functional gym and power backup for the lifts and common areas, for its residents. It’s hard to decide where the scale tips when it comes to the choice of homes in Mumbai - luxury or regular apartments, since the demand for both is on the rise. However, if you’re looking for a home that fits the bill in all aspects, Runwal Forests - 2 BHK flats in Kanjurmarg West, would be your best bet.