The unpredictable nature of the real estate business has seen a lot of highs and lows in the sale of properties. While many believe the real estate industry is in a bit of a slump across the nation, certain cities have been able to defy odds and post positive results.
In India, the city Kolkata witnessed an increase in the sale of housing units in the last quarter. The city saw a 32% rise in units sold when compared to Q2 in the year 2015, based on data collected from a realty research agency.
Other reports suggested that the real estate market saw a 17% rise in the sale of properties in all the eight metros combined. Researchers stated the reason for the growth in sales over the last quarter has been due to a drop in prices of projects.
Can luxury apartments be the game changer?
While real estate marketers have tried their best to build projects which cater to most, there are a range of projects coming up which target only a handful of clients. Luxury apartments and complexes are being built by real estate developers and these projects are extremely expensive compared to the other projects but with good reason.
Real estate marketers are bringing in top designers and architects from across the world to help design and execute these projects. Most complexes falling under the luxury category feature large sized apartments and duplex flats along with a range of great amenities.
Although expensive, luxury projects are seen as a jewel in the crown for real estate developers, something that can help them stand out from the competition and hopefully bring in a lot of revenue from sales.
Kolkata is also seeing its fair share of luxury projects being constructed. These projects are changing the landscape of the city thanks to its artistic designs. Even though the luxury market hasn't been the bestselling segment in the city, there are high hopes for the projects.
Most regular apartment complexes feature 2 BHK and 3 BHK flats but luxury projects feature larger flats having 4 BHKs and a lot more to offer to prospective buyers. These flats, depending on the city, cost anywhere between 2 crores to 50 or 60 crores and take longer to sell than non-luxury apartments. Even a single flat sold brings in a large amount of money for the real estate developer.
While residents get the best facilities and cherish the grandeur of living in these luxury apartments, it is still a risk for the real estate developer – the flats can stay unsold for long periods of time. In an industry which has so many projects coming up, the need to have a project that gives the developer a unique identity is of the utmost importance. Since the rewards for building a luxury project outweigh the risks involved, it should lead to an even greater number of such projects coming up in the future.