by Sarveshaa SB, Managing Director, BHADRA Group
If you are considering purchasing a property in India, you are likely aware of the significant changes occurring in the country's real estate scene. What's the buzzword everyone is talking about? Luxury residences for a select few. These opulent apartments are more than just a passing trend; they are a game-changer, as someone directly connected to the real estate market can confidently attest. Let's explore the numerous reasons why boutique homes are not only a luxurious option but also a wise investment for the future.
The price tag: It's about more than just a number
First things first, let's address the most obvious issue here, which is the cost. In India, the average cost of a boutique home starts at around 1.5 crore rupees, whereas the cost of a typical home starts at approximately 60 lakh rupees. This is a significant difference, but it's crucial that you fully comprehend the benefits that come with paying this additional amount. It's not just about the number of square feet or a prestigious location; instead, it's about upgrading their lifestyle. The additional cost is an investment in a way of life that will not only provide with comfort but also, in the long term, a larger return on your initial investment.
The ever-increasing demand is a reflection of the current climate
The year 2023 marked a pivotal moment for boutique homes, with sales surging by 20% compared to the previous year, making it a watershed moment in the industry. Why is it necessary for you, as a homebuyer, to pay attention to this? It serves as unmistakable evidence that an increasing number of individuals are recognising the benefits that come with purchasing a boutique property. This boom isn't just a passing trend; it mirrors a broader cultural shift towards a more affluent and globally aware middle class seeking homes that align with their aspirations. This transition has led to a surge in demand for homes that are more expensive and located in more desirable areas.
The real treasure lies in rental returns
Higher rental income is a benefit that comes with owning a boutique home and simply cannot be overlooked, whether you are a homeowner trying to rent out your property or an investor looking to purchase a property to rent out. Due to the low supply of properties like this and the strong demand for them, you should be able to charge a higher rent. Therefore, in addition to owning a luxury home, you also have a reliable source of income that can bring in a substantial amount of money.
Where to purchase: The markets driving demand
If you are interested in making this investment but aren't sure where to do so, your best bet is to consider one of India's major cities, such as Mumbai, Delhi, Bangalore, or Hyderabad. Not only are these areas significant contributors to the nation's economy, but they also serve as cultural crossroads, attracting a demographically diverse and economically successful population. As a result of this, there is a high demand for luxury housing, making these cities perfect locations for investing in boutique properties.
Recently, experts have given their approval to the Knight Frank India Report, which states that the financial potential of boutique homes is robust. The report highlights three primary motivating factors:
• The demand for luxury real estate, such as that offered by boutique homes, is experiencing meteoric growth due to urbanisation and the accompanying increase in household income.
• The limited availability of boutique homes makes them highly desirable commodities, driving up both the purchase and rental prices of these residences.
• In an effort to attract international investment and stimulate the economy, the Indian government is providing financial assistance to luxury real estate developers.
In India, a person's place of residence frequently determines their social status. The opulent features and prestigious settings that come standard with boutique homes make them ideal status symbols. Additionally, these residences typically offer lifestyle features such as private pools, fitness centres, and rooftop terraces. These amenities not only enhance the value and aesthetics of the property but also improve the quality of life for the residents.
A boutique way of life
The Indian real estate market is on the cusp of a new era, and boutique homes have emerged as the epitome of contemporary luxury and savvy investment at this pivotal moment. These luxury homes are more than just architectural wonders; they represent a manifestation of a forward-thinking lifestyle that seamlessly combines comfortable living with sound financial planning. When you choose a boutique home, you are not only selecting a place to live but also supporting a vision for the future, one in which luxurious living can coexist with profitable returns. The boutique home is not a passing trend; rather, it is the future, inviting residents with open arms.
