by Mr. Om Ahuja, JLL
India
A report in 2013
labelled Mumbai as the 16th most expensive city globally in terms of owning a
residential space. The southern region of the island city is seen as the most
prime, with locations such as Colaba, Cuffe Parade and Malabar hills topping
the price charts. Owning a home in these and similar location of other cities
can cost a buyer more than he or she would earn in two lifetimes.
The question ‘does
location provide you with luxury?’ is an interesting one. Is a family that
lives in a compact, old, stuffy and featureless 1 BHK flat in Cuffe Parade
living in luxury? Or / would such a
family live in luxury if it sold this flat and moved to a more modern,
spacious, comfortable and better appointed flat in the suburbs?
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| Om Ahuja, JLL India |
Given the ever
worsening shortage of land in the prime locations of our larger cities, home
prices in these areas are largely beyond affordability for most buyers. Homes
in such locations are bought by the extremely rich for the sake of address
value and easy access to the CBD, even if they lack the superior amenities of
newer, more modern buildings in further-flung areas. In such cases, the luxury
factor is vested almost exclusively in the snob appeal of the location.
For a family living
in South Mumbai that plans to move to a bigger place, the options available in
their neighbourhood would either be non-existent or extremely heavy on their pocket.
One must remember that many families owning homes in central posh locations
purchased these homes many years ago.
In some cases, these
homes have been handed down over at least two generations. Not all such
families would be generating income that matches the locations they live in.
However, if such a
family were to put its current home on the market and obtain the kind of
selling price that such locations can yield solely on the basis of address
value, they can relocate to a home in another part of town that offers all the
luxuries of a modern lifestyle.
For this family, the
luxury factor will then have increased dramatically. In other words, if we look
at the concept of luxury as a matter of perception, the ballgame changes
entirely.
On a different level,
but keeping the same principle in mind, families living in the suburbs or
far-suburban areas who are seeking to upgrade their lifestyles in the same
locality may have only a marginal additional budget.
Nevertheless, the sale proceeds of their
current home coupled with this additional budget would certainly fetch them
something that provides them with more luxury in terms of space.
In other words - if
the true meaning of luxury is assumed to be solely about spending huge amounts
of money to buy a super-premium property in a prime location, then certainly
only the ‘uber rich’ would get the taste of such luxury.
However, luxury means
different things to different people - it literally exists in the eyes of the
beholder.
If someone who feels
the need to upgrade their lifestyle and to move to a better, bigger home that
meets all their requirements, any option that provides them with a perceptibly
superior living experience is luxury for them.
In real estate market
terms, the definitions of 'premium' and 'luxury' are more or less standardized
and fairly rigid in terms of ticket sizes, amenities offered and locations
involved. However, these are market standards and do not account for a far more
human factor - namely personal perception.
If we look at luxury from such a perspective,
there are in fact no hard and fast definitions at all.
About the author..
Mr. Om Ahuja, CEO -
Residential Services, JLL India
For Media Contact
Arun Chitnis
Head – Corporate
Communications & Media Relations
JLL India
Pune 411001.
Tel: (020) 30930441
Fax: (020) 40196101
Mob: +91 9657129999
Website:
www.joneslanglasalle.co.in
Twitter:
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