India’s residential real estate market continues to grow at a rapid pace driven by new property launches, attractive pricing, and strong consumer demand. As per the JLL report in Q2 of 2023, there were 64,500 residential units sold, which is a growth of approximately 4% compared to the previous quarter. Residential sales have consistently reached new highs each consecutive quarter over the last year. Sales in Q2 of 2023 exceeded the previous historical high of Q1 of 2023, making it the highest quarterly sales since 2008.
To cater to people’s desire for a higher quality of life, builders are now concentrating on constructing larger and well-equipped homes. In the first half of 2023, new premium apartment projects increased by 61% compared to the previous year, and mid-level apartments went up by 7%.
It’s no secret that the demand for luxury housing has been on the rise, and here are some things you should know before investing in any luxury property:
The objective of the property: Having a clear idea of what you want to do with the property, whether you want to live there permanently or rent it out to make a living, will go a long way in helping you choose the right property for you. It all depends on your goal of buying the property.
Budget Realism: Determine your budget realistically. Calculate not only the purchase price but also the associated costs, including registration, stamp duty, maintenance, and property tax. Avoid stretching your finances too thin.
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RERA registration: Verifying whether the property you’re looking to buy is registered with the Real Estate Regulation Authority (RERA) is a fundamental step. This registration ensures that the property is secure and adheres to all regulations. It also provides assurance through clearance certificates, demonstrating the property’s resilience to natural disasters like earthquakes.
Builder Reputation: Research the builder’s reputation and track record. The credibility of the developer can be an indicator of the project’s quality and adherence to timelines.
Location: One of the critical factors to think about is the location. Ideally, it should be in a prime spot. Good connectivity is vital, making it easy to reach markets, offices, schools, colleges, and hospitals. Another crucial factor to consider is the viewing experience.
Price Appreciation Potential: Luxury properties are meant for long-term investment. It’s important to consider how the property’s value will increase over time. Factors like location, brand reputation, design, and amenities all play a role in determining its future price.
Maintenance and Upkeep costs: In many cases, purchasing a home may not be as challenging as maintaining it to the highest standards. You should also consider the developer’s willingness to help you maintain the project’s high standards in the long term.
Inspection and Documentation: Before finalizing the deal, inspect the property thoroughly. Ensure all documentation is in order, including title deeds, agreements, and clearances.
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In conclusion, India’s residential real estate market is thriving, with a growing demand for luxury properties. To make a wise investment in this dynamic market, remember to have a clear objective for the property, set a realistic budget, ensure RERA registration, and meticulously research the builder’s reputation. Location, potential for price appreciation, maintenance costs, and proper documentation are all critical considerations. With these factors in mind, you can navigate the evolving real estate landscape and secure the perfect luxury property for your future.
This article has been written by Rohit Gupta, CEO at Mantra. Views expressed above are personal.
