Unlock Wealth and lifestyle with Villa Investments
- Rakesh Setia, President - Sales & Marketing, Rustomjee Group
The current property market in Mumbai is at a situation where demand is ahead of supply leading to shortage of inventory and price increase. While the prices of residential apartments are steadily growing, investments in villas offer an opportunity to build a diverse portfolio, solidify financial reliability as well as secure stability.
Villas help safeguard your cash during inflation by providing price growth opportunity on your property as well as the land over a period of time.
The adverse effects of inflation in stocks and bonds can be avoided by investing in a villa and an investment in land is considered to be similar to investing in gold or silver. Investment in land or villa can protect you from the decreasing value of money during economic volatility as real estate assets manage to regain their stability faster than other asset classes.
Additionally, the financial benefits that are associated with villa ownership are also inclusive of tax benefits. Therefore, under sections 24(b) and 80C of the Indian Income Tax Act, homebuyers are allowed to deduct the interest on the home loan as well as a portion of the loan amount to be repaid.
As compared to apartments, villas typically are associated with land ownership whose value appreciates significantly higher than apartments over a period of time.
The CRE Matrix report highlights how locations like Kasara, Manor, Igatpuri and Goa are preferred by investors for developing villas due to the on-going infrastructure development resulting in improving connectivity, thus boosting the land value considerably.
The report also mentions 34% of the buyers belong to the 45-55 age bracket while 27% buyers fall in the 25-35 age bracket to drive demand for villas in these scenic locations.
Residential homes such as villas especially in picturesque locations like Goa, Lonavala and Kasara have an opportunity of offering higher rental yields as well.
Tourists prefer villas due to the adequate space and privacy, which drives the increase in demand and prices of such properties. Buyers can earn incremental returns on villas if they lease them out due to exponential increase in short – term rentals as property values continue to soar. Also, renting out a villa may include more tax credits which makes it a profitable venture for buyers.
In scenic locations like Kasara, Lonavala and Alibaug, villas combine luxury with nature’s serenity. Villas also offer the ability to personalise, through modern smart home technology or a rustic retreat. This ability to design and change the space gives character and value to the property. Beyond being a smart investment, villas are status symbols, especially in gated communities where privacy, security and luxury amenities give you an elite lifestyle, a value add for health and wellness. Villas also meet the market demand for spacious homes that can accommodate work-from-home setups, fitness areas and relaxation zones. Villas with their large spaces and outdoor areas are a great escape from city life. A morning walk in your private garden, just sitting in silence or watching your dog chase a butterfly in your garden, this is what makes villa ownership so rewarding.
In conclusion, Villas are a good investment as they offer price appreciation, financial stability and diversification. With demand increasing in areas like Kasara, Alibaug and Manor, villas are a tangible asset that appreciates over time. For investors looking for financial security, portfolio growth and inflation protection, villas are the ideal choice.