In this time and age of a high economy driving the nation towards growth and development, real estate is the prime sector that utilized the high tide well for the growth. Urbanization of metros and a strong will of millennial to buy a luxury house, growing income, and the trend of real estate as a lucrative investment has driven the upper middle-class segment to plunge into luxury real estate along with top-of-the-line investors like high net-worth individuals and ultra-high net worth individuals. Time and space are the ultimate luxuries, and a luxury home gives you the valuable opportunity to enjoy the space and time you spend in your home. Despite the purpose, to buy home is a dream for many as it offers only the best state-of-the-art amenities and living style, be it an investment or as a place of residence. Though the vast growth is a sign of healthy investments in the field, one must analyze the market before buying luxury homes in India to make informed decisions and make the investment safe and profitable.
It is imperative to discuss smart homes while speaking of luxury real estate in India. Statista reports that smart home revenue is expected to show an annual growth rate (CAGR 2022-2027) of 8.15%, with a projected market volume of US$6.85bn by 2027. (https://www.statista.com/outlook/dmo/smart-home/india) Luxury residential real estate scales to the peak and showed growth year after year, especially after the pandemic. HNIs and NRIs invest more in real estate as the luxury of space is redefined. Home search in the luxury property market is the perfect profitable opportunity to land your funds and indulge in space lavishness. As the luxury housing market thrives to fulfill the dreams of mid-segment, tier II cities have become popular destinations for luxury housing real estate along with metropolitans like Chennai, Bangalore, Mumbai, Delhi, Kolkata, etc.
Although luxury real estate has diverse price tags that accommodate the budget of several segments these days, one must evaluate and consider certain things before buying a luxury home.
1. Market Research
The investor must do thorough market research before search home with the luxury extravaganza. The real estate market in India is colossal and up-to-date knowledge on factors like market value, price, location, and competitive luxury amenities available to consume for the buyers will let you choose between the best of the best luxury house that suits your exclusive needs like a pro and avoid paying more than the actual worth of the property.
2. New GST for Properties Home
When we talk about tax, Budget 2023 is indispensable that the Finance Ministry of India proposed to cap the deduction from capital gains on investment in residential houses under Sections 54 and 54F to mitigate the acute shortage of housing and to give an impetus to house-building activity, which made waves and many rushed to buy house before the amendment to reduce capital gains tax liability.
GST Information on Luxury Properties
|
Luxury Housing |
Old (Before April 2019) |
New (After April 2019) |
|
Property price per sq ft |
Rs.7,000 |
Rs.7,000 |
|
GST rate on house purchase |
12% |
5% |
|
GST/sq ft |
Rs.840 |
Rs.350 |
|
ITC benefit for a material cost of Rs.13,000 at an average of 15% |
Rs.126 |
Not Applicable |
|
Total |
Rs.7714 |
Rs.7350 |
3. Location
Location means the area inclusive of the property and its surroundings. Locale and the neighborhood determine the healthy and peaceful living, and development potential decides the property value and appreciation in the long term. For modern luxury house, the fine infrastructure is not just the roads, connectivity, and buildings but also the proximity of the finest educational institutions, multi-specialty hospitals, clubs, malls, supermarkets, and effortless connectivity to the other parts of the city
4. Neighborhood
Neighborhood is the essential criteria while looking for a luxury home Just one luxury property in the middle of average surroundings doesn’t make the cut and this is why you have to check the neighborhood before making the decision. The area has the impact on your lifestyle and you should check for any red flags like pollution causing adjacent buildings and upcoming projects in the region to choose your luxury home wisely. For an investment of a lifetime, purchase properties to be worth every bit of it!
5. What Are Smart Homes?
The point of buying luxury real estate is to have it all at your service and in an advanced age it translates to having smart tech utilities and amenities that makes living in the digital age easy and enjoyable. Smart homes come with Automation, IoT, and cloud technology home devices and gadgets that offer safe, healthy, and luxurious living in gigantic proportions.
6. Amenities
“Personalized” is the keyword to buy property in the luxury category. What’s the point of luxury when it doesn’t suit your lifestyle? Ensure you spend only on amenities that you will use at the max. For example, if you don’t spend much of your time watching movies or are not into reading, a home that offers amenities such as an indoor multiplex, and the library may be a wasteful spending. However, while buying luxury homes for sale consider your family’s needs to make balanced decisions in this regard.
7. Property Developer Reputation
When buying a luxury property, you should consider the experience of the luxury real estate agent, as they have the expertise to suggest the best deals that suits your unique requirements. Reliable developers who are in the industry for a long time don’t hurry to sell off just any property but ensure the buyers are fully aware of the property details, maintain the highest transparency in transactions, and value customer satisfaction more than anything.
8. Financial Planning and Home Loans
A golden thumb rule is not to spend your entire savings on real –estate, especially if you are a first-time luxury home buyer. Opting for a home loan is a safe option with which you can save on capital payments, and there are ways to save on interest by picking the right type of home loan. Remember to include property tax and anticipated maintenance costs in your budget plan.
Home Loan Interest Rates in 2023 by Some of the Banks
|
S.No |
Bank Names |
Interest Rates (P.a) |
|
1 |
Citibank |
6.80 % onwards |
|
2 |
Union Bank of India |
9.00 % onwards |
|
3 |
HDFC Home Loans |
8.60 % onwards |
|
4 |
Punjab National Bank |
8.55 % onwards |
|
5 |
Axis Bank |
8.60 % onwards |
|
6 |
Kotak Mahindra Bank |
8.65% onwards |
|
7 |
Standard Chartered Bank |
8.40% onwards |
|
8 |
IDBI |
8.75% onwards |
Key Points
Real Estate Tips for Buyers