Real Estate

How to identify the difference between luxury and regular apartments

The real estate market has seen a resurgence with the luxury market showing significant growth in the last quarter. However, the regular apartment segments continue to be a popular choice with the middle and salaried class. Experts watching the real estate space are extremely optimistic about the demand for both the segments. While luxury apartments raise the bar on comfort, convenience, and quality, regular apartments come with their own advantages. Statistics show that more than 60% of first-time homebuyers continue to opt for regular apartments.

But is money the only contender for the choice of luxury/regular apartments? Real estate experts are unanimous in their opinion that there is more to it than that.

Salient features

Luxury apartment

Regular apartment

Costs

The price of a luxury apartment can be in the range of Rs 1 to 4 crores, depending on the amenities. Add to that an annual appreciation rate of 3% to 7%.

As for rentals, luxury apartments fetch over 40% higher rentals than regular apartments.

In cities like Bangalore or even Pune, regular apartments are in high demand owing to the large middle-class pool. The price usually ranges from Rs 40 lakhs to Rs 90 lakhs, depending on the location and amenities.

The annual appreciation of these properties ranges between 2% and 4%.

Investment value

Luxury apartments in an upscale neighborhood is a performing asset.

The rental value for luxury apartment owners is a 40% premium compared to regular apartments.

For investors, regular apartments deliver consistent rental income as they are more popular among the floating population who prefer affordable and smaller spaces.

Price volatility is is more in luxury apartments, with prices fluctuating between both ends of the spectrum. Regular, mid-segment apartments continue to have steady pricing and are an attractive option for all.

Location and neighbourhood

Luxury apartments mostly focus on up-scale neighborhoods of the city.

Builders are offering niche neighbourhoods with taglines like “Silicon Valley Enthusiasts or CEO Colonies” to attract a defined clientele.

Regular apartments have been mushrooming in newly formed neighbourhoods.

Large properties come

with a community space, which can offer a strong support system. The public amenities and the neighborhood develops as more and more people move into it.

Space

A luxury apartment spreads over more than 1800 sq ft, accommodating a 3 or 4 BHK space.

Expansive kitchens, maid quarters, attached balconies or a party space can be a part of it.

Regular apartments can range from 700 to 1200 sq ft and are mostly compact units housing all under the same roof.

Floor-to-ceiling height

The floor-to-ceiling height in luxury apartments are ideally 12 feet and above or else it loses its luxury tag.

The floor-to-ceiling height of regular apartments is usually 10 feet.

Amenities and comfort

Luxury apartments offer a wide range of amenities for your comfort.

You are spoilt for choice – from roof-top private pools, Juliet balconies, helipads to canopied walkways - a luxury space offers lifestyle amenities that let you live life king-size.

Another hallmark of luxury apartments is its top-of-the-line construction materials and fittings.

Regular apartments offer standard amenities like power back-up, swimming pool or a functional gymnasium, for all its residents.

Highly secure living spaces

Luxury apartments have higher levels of security. Emergency buzzers, intercoms, fire chutes and top-of-the-line security installations ensure a stress-free life.

Many high-end apartments provide solar generators, home automation, accident and medical emergency relief rooms, natural disaster bunkers and safe rooms in case of terrorist attacks.

Regular apartments offer collective installations, power back-up, and secure access through electronic cards or guards. These apartments have a shoestring budget for security and depend mostly on outsourced agencies.

While it’s hard to fathom which side the scale tips, the demand for both luxury and regular apartments are on the rise. But ultimately your choice of a home remains an eclectic mix of emotions and economics.

This article is contributed by RoofandFloor, part of KSL Digital Ventures Pvt. Ltd., from The Hindu Group


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Printable version | Nov 24, 2021 5:39:24 AM | https://www.thehindu.com/real-estate/how-to-identify-the-difference-between-luxury-and-regular-apartments/article19895826.ece

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