Diamond-encrusted lobbies, state-of-the art parking systems that park cars with the touch of a button, private swimming pools for every flat — these are just some things that uber luxury apartments offer HNIs, giving them more reasons to stay in the city than just location.
Other metros might boast of multi-million residences like Antilia (Mukesh Ambani’s house) and the Armani-designed World One Tower, but Chennai has decided to come into the luxury market with private villas and apartments that target high-income buyers who believe that if you have it, maybe it’s time to flaunt it. It marks a slow change in a city that has long eschewed conspicuous consumption or vulgar display.
Visibly rich
“The earlier trend was towards multi-generational entrepreneurial households,” says Kanchana Krishnan, Director, Knight Frank. “But with the coming of start-ups and technology-based companies, the demand has grown for super-luxury apartments for a newer generation of wealth creators.” The city’s traditional HNIs inherited their homes. Today’s HNI professionals, CEOs, doctors, lawyers or businessmen are building their own. And they want to announce their arrival with style. They demand homes that meet world-class standards of luxury. They are well travelled and have seen what’s on offer worldwide. “They want all the facilities of a full-fledged bungalow and all the conveniences of a five-star hotel,” says V. Suresh, CMD, Real Value, currently building Czar’s in MRC Nagar. Advertised as the ‘Most Expensive Condominium in Chennai’, an apartment here comes at a never-seen-before price tag of Rs. 30,000 per sq.ft.
Chandan Jain, Joint MD, Vijay Shanthi Builders, agrees. “The demand for luxury apartments in Chennai owes to the cosmopolitan lifestyle and culture brought into the city by the MNCs that have set up base here.”
It’s to die for
In the last few decades, what was earlier seen as luxurious has trickled down to even ordinary mid-to-top-end apartments, hugely redefining the market. “Luxury projects were earlier defined by large floor area, air-conditioning, imported fittings etc. Now, to get the ultra luxury tag, homes come with luxury bullet elevators, internal elevators in duplex apartments, concierge services, private gardens, individual swimming pools with Jacuzzi inside the flats, five-star lobbies, multiple car parks and more,” says A. Shankar, National Director, Strategic Consulting, JLL.
Interestingly, look what else is called ‘luxury’: top-notch apartment complexes in the suburbs come with in-house solutions for continuous water supply and sewage treatment plants. “These basic amenities have become an integral part of the luxury offering,” says Shankar.
Price of luxury
Maintenance costs for these homes range from Rs. 8 to Rs.10 per sq. ft per month, which adds up to Rs. 40,000 for a 4,000 sq.ft home. Yet, it still proves cheaper than having all these facilities in an independent home. “Hiring security guards and maintaining a swimming pool alone will cost more than Rs. 50,000 a month. So, an independent home will cost more than a lakh to maintain,” points out Arun Kumar, CMD, Casa Grande, whose Gopalapuram apartment project costs upwards of Rs. 6 crore per flat. “In India, where there isn’t an established facilities management market, dividing maintenance between neighbours proves helpful.”
Let’s talk RoI
Yet, at a time when the real estate market is down, how much return on investment do these investments offer? “During the height of the realty boom, our properties on MRC Nagar saw a six-fold price surge in under 10 years. Even if the returns have fallen, these projects promise a handsome return because of the exclusivity of these homes and because only a few are available. The majority of these homes are bought by end users, but those rented out to MNCs or consulates generate an average income of Rs. 3-4 lakh a month, which is a healthy return too,” says Real Value’s Suresh.
And finally, let’s look at how Chennai plays down even the luxury market. In other cities, high-end apartments are marketed with frills that include designer lobbies, diamond or gold encrusted fittings and more. Do these create a buzz here too? “It may work elsewhere but not in Chennai”, says Arun Kumar clearly. “For instance, an iPhone is a great phone even if it isn’t encrusted with diamonds. When it comes to a building, if resources are directed towards quality, only then it becomes a landmark and Chennai has astute customers who don’t get influenced by gimmicks.”
