As the number of high net worth individuals (HNIs) increases in the country, real estate developers too, have reinvented themselves to try and cater to their needs. However, misconceptions still exist, about what truly constitutes a luxury project. Often, when developers want to charge a higher price, they add a few bells and whistles to their projects, and market it as a luxury project.
As a discerning buyer, you should carefully assess the project on several criteria.
When investing in a luxury property, a buyer may often get carried away by the lavish amenities and specifications offered by developers. Real estate experts assert that the factor which you should accord the highest importance to, when buying a luxury property, is its location. For an apartment to be regarded as a luxury property, it must be situated in an upmarket locality.
“Sometimes, development firms make the mistake of constructing high-end properties, in remote pockets of the city. They pay the price for this mistake, when their project elicits a poor response,” points out Vikas Gupta, director of Amour Infra, a Gurgaon-based real estate development firm.
After location, if there is one criterion that defines luxury, it is size. Unless an apartment is at least 3,500 sq ft, it should ideally, not be considered as a luxury home. Moreover, the number of dwelling units in the project should be few, and there should be ample green spaces.
For a project to be treated as high-end, the socio-economic background of buyers also plays a role. If the developer gets this mix wrong, he may find it difficult to attract people to the project.
“Many developers sell luxury projects ‘by invitation only’, in order to attract the right kind of people to the project,” explains Rajan Ahuja, director, Realty & Verticals.
See also: ‘By invitation’ only projects
The track record of the developer is also important, for a luxury project. Has he executed such projects in the past?
A builder without experience in the luxury segment, is unlikely to be able to develop a luxury project and attract its associated target audience. Besides quality of the project, the quality of services that the developer offers within it, also counts in delivering a truly five-star experience to residents.
This requires an approach that can’t be imbued overnight in the developer’s organisation.
Amenities and specifications
Once you have ensured that the project meets all the above-mentioned criteria, only then should you look at the amenities and specifications. The features in a luxury project should be top-notch. Luxury also means that the developer offers choices to his customers. He should create the basic building and then customise the amenities and specifications according to the buyers’ preferences.
Watch out for…
Many Indian developers, while marketing luxury projects, highlight the fact that the architecture will be done by a firm from the US, or that its landscaping will be done by a firm from Hong Kong, and so on. Buyers should not fall prey to such hype and instead, try to find out exactly what value these tie-ups will bring to the project.