Real estate news on Living in luxury

Investors/ Investment proposal, Real Estate services, Residential Properties, Hyderabad, Luxury residential project
Posted on Aug 09, 2016
Hyderabad

Luxury properties in the city see a growth in demand and supply.

World class infrastructure, great employment and entrepreneur opportunities and an economic growth more than the average national economic growth, has all made Hyderabad a place where one wants to live. With an abundance of affluent buyers in the city, the realtors in the city are slowly and surely venturing into the luxury segment of real estate to offer a world class residential experience that is extravagant, opulent and high on grandeur and aesthetic sense.

Luxury residential projects, after a slump of few years have seen a price increase of 3.3% since the beginning of 2016. Ready-to move-in premium properties saw a price increase of 2% while under-construction properties saw a price hike 3.4%. A crore and above properties were witnessing 0.2% 2% price rise. Properties worth Rs 6,000 per sq ft and above accounted for 4% of the total residential supply.

While the perception of what is luxury will differ from city to city and even individuals to individuals, there are some features which set luxury properties apart. The brand, amenities and facilities provided, location, artistic or technological edge over the others and ofcourse a hefty price tag are some of the factors that determine a luxury residence. Srinivas Rao of Rajapushpa Properties explains, "Luxury residence is something that has a direct impact on the lifestyle of its occupants. Amenities should take into account every detail of the needs of the residents."

Typically in a luxury project buyers look for world class security, brands of the tiles and bathroom fittings, design of exterior and interiors, floor plans. It should also have a swimming pool, guest suites, reception hall, landscape garden, gym, supermarkets, mini theatre, walk in closets, spas, restaurants, coffee shops and so on.

Another primary factor determining the success of a luxury project is its location. Sarath Babu of Ramky Group says, "Buyers looking for luxury properties want lung space both inside and outside the gates. Ideally the location should be away from the hustle bustle of the city, with less pollution, a significant green cover and no high other high rises in vicinity. However, the location should not be remote but have good connectivity. In Hyderabad, Gandipet, Kismatpur, Tellapur are some of the areas that are suitable for luxury residential properties."

Talking about the location, Dheeraj Reddy of Pooja Crafted homes, says, "People prefer luxury villas on the ORR road between Gachibowli and Shamshabad airport. For luxury apartments, people prefer areas such as Hitec City, Financial District or Gachibowli. Some buyers also prefer locations such as Banjara Hills and Jubilee hills which has known to be a hub for posh and wealthy for years now."

The price bracket can be anywhere from Rs 2-2.5 crores depending on 2, 3 or 4 BHK or duplex apartments and amenities provided. The luxury properties can further upgrade into uber luxury properties that falls under the price range of Rs 5 crores and above.

Although a small market, luxury projects fetch good returns for developers. Reddy says, "The return margin could be 10-15% higher than normal projects since lot of features are added up and obviously billed to the client." In agreement to it, Rao confirms that a luxury property can easily fetch 40-50% returns in 2-3 years.

However, luxury real estate is not something everybody can venture into. Luxury property caters to a segment that wants style and trust. Babu says, "It requires special skills and a passion to develop a luxury project. It is also a matter of prestige for the brand. In fact buyers look for big brand names and excellent track record of the builder given the huge sum of money involved. A builder entering into the luxury property segment should be capable of delivering on that, which obviously not everyone can."

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