Luxury apartments: the next big thing
The unpredictable nature of the real estate business has seen many ups and downs in property sales. While many believe that the real estate industry is a bit down across the country, certain cities have been able to defy the odds and post positive results.
In India, the city of Kolkata witnessed an increase in the sale of housing units in the last quarter. The city saw a 32% increase in units sold compared to the second quarter of 2015, according to data compiled from a real estate research agency.
Other reports suggested that the real estate market saw a 17% increase in property sales in the eight metropolitan areas combined. The researchers claimed that the reason for the growth in sales during the last quarter was due to a drop in project prices.
Can luxury apartments change the rules of the game?
While real estate sellers have done their best to build projects that will satisfy the majority, there are a variety of projects in the pipeline that target only a handful of clients. Real estate developers are building luxury apartments and complexes and these projects are extremely expensive compared to the other projects, but for good reason.
Real estate vendors are bringing in top designers and architects from around the world to help design and execute these projects. Most complexes that fall into the luxury category feature oversized apartments and duplexes along with a variety of great amenities.
Although expensive, luxury projects are seen as a crown jewel for real estate developers, something that can help them stand out from the competition and hopefully generate a lot of revenue from sales.
Kolkata is also seeing its fair share of luxury projects under construction. These projects are changing the landscape of the city thanks to their artistic designs. Although the luxury market has not been the best-selling segment in the city, there are high hopes for the projects.
Most of the regular apartment complexes have 2 BHK and 3 BHK apartments, but the luxury projects have larger apartments that have 4 BHK and much more to offer prospective buyers. These flats, depending on the city, cost between 2 million rupees and 50 or 60 million rupees and take longer to sell than non-luxury apartments. Even a single apartment sold generates a large amount of money for the property developer.
While residents get the best facilities and appreciate the grandeur of living in these luxury apartments, it remains a risk for the developer: apartments can remain unsold for long periods of time. In an industry that has so many projects to come, the need to have a project that gives the developer a unique identity is paramount. Since the rewards for building a luxury project outweigh the risks involved, it should lead to an even greater number of such projects in the future.
