It is a well-accepted fact that real estate is a very dependable and highly rewarding investment with steady income in the form of rent, good appreciation over time, along with the safety of investment. Investing in real estate bears fruits to the loyal investors, and one highly rewarding segment of this traditional investment is the exclusive upscale market,i.e., luxury apartments in thriving localities of the city.

A recent survey by real estate consultancy Anarock specifies that the average price of luxury homes in India, with price exceeding 1.5 crores, has witnessed the highest hike of 24% since 2018. Real estate hotspots in the city of Hyderabad experienced capital appreciation of property by 7% and monthly rentals  increased by 15%. Let us look at the factors that contribute to this trend and make the luxury apartments in the city a smart and financially beneficial investment –

Rewarding rental returns

Post the pandemic the demand for luxury apartments is on the rise, this is due to the fact that more space and amenities have become an indispensable requirement from the living space. While the kids attend online tuitions parents operate in a hybrid mode logging in to their work from home and at times physically traveling to work to attend meetings, etc. So luxury homes with more space and comfort are the top choice of every tenant looking out for a quality home in a preferred locality.

Similarly premium gated community apartments equipped with facilities like gym, swimming pool, children’s play area, indoor/outdoor game courts, departmental store, etc., located in buzzing localities of the city like Bachupally, HiTech city, Gachibowli and the neighbouring residential hotspots yield more rental returns when compared to other residential properties in the city.

The story is similar in all the leading metropolitans in the country. An analysis by Anarock  indicates that the average monthly rental across the leading luxury localities in the top 7  cities in the country has witnessed a double-digit growth, between 8 and 18%. Post the pandemic as the schools have reopened and offices insist on traveling to work a few days of the week, people relocate to the parts of the city with good connectivity to place of work, education, etc.

So, apartments in thriving localities and equipped with good amenities are always in demand yielding a steady and very lucrative rental income. For houses bought on EMI this rent can very well meet the monthly instalments to be remitted against the housing loan, a great financial advantage for the smart home buyer.

Great potential for appreciation

Located in upcoming localities that hold great potential for development and growth, luxury apartments have good potential for appreciation. The booming places of the city which are pockets of growth, in terms of infrastructure development, employment opportunities, and upsurge of industrial establishments, the future of investment is very promising and highly-rewarding there. There is a constant demand for luxury living spaces in thriving markets like Bachupally, Bachupally Extn, and neighbouring localities as people move there in search of better jobs and quality of living. Premium gated community apartments in such chosen localities of Hyderabad have proven to provide the investor substantial gains over time.

With the industrial revolution, especially the IT sector continuing to expand the affluent demographic in Hyderabad, the demand for luxury homes in the growing real estate hotspots of the city continue to surge.  The presence of premium lifestyle amenities in like world-class club house, gym, indoor/outdoor games, swimming pool, roof-top facilities, co-working spaces, and other modern facilities, attract takers who aspire for better quality living, thereby guaranteeing investors excellent returns on resale of property.

With people increasingly incorporating these lifestyle amenities as a part of their everyday life one wonders if there would be takers for houses sans these features, indicating that luxury living would be the norm of the future. The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing YOY. So houses with modern amenities in growing localities would appreciate considerably over time to yield excellent returns on sales.

Portfolio diversification for better risk mitigation

Diversification is the key to mitigate risk and gain better returns on the investment. When one considers investment options such as stocks, bonds, mutual funds, being aware of the market conditions, constantly evaluating the performance of the organization is very crucial and on more than one occasion being very accurate is not feasible.

So, there is always the market risk associated with them, so diversifying the investments across asset classes will help mitigate the risks. An investment in a premium apartment is the best option for risk mitigation, for flats for sale in highly developing pockets of the city like Bachupally, has the potential for excellent asset appreciation and return on Investment owing to the locality advantage.

One need not fear market volatility, the impact of political and social scenario, etc., all of which affect the stock market, in contrary to which, industrial development and booming job market draw people to these residential hotspots of the city, and real-estate investment in such localities always guarantees excellent short-term and long-term financial gains. For a more resilient and rewarding portfolio one must definitely include a smart investment in a luxury property.

While the above arguments clearly establish that investing in luxury apartments in emerging residential hotspots like Bachupally is a smart financial move, one often wonders what are the qualifiers for a luxury living space. Apart from the requirement of more space and comfort, exclusive design and detailing, trendy layout and optimal planning, thoughtful lifestyle amenities curated considering  the requirements of the new-gen home buyer, all these elements go on to make a living space a luxury home.

Check out the exclusive contemporary flats in the most preferred residential locality of the city, Bachupally, equipped with latest facilities, appealing finish, and offered at the best price, they guarantee dream living and make for a very prudent investment that earns multiple financial benefits.