Investing in luxury apartments is quickly becoming a popular trend among real estate investors in Pakistan owing to their growing demand in the market. That means, if you are planning to upgrade your accommodation or looking for an investment opportunity, you must have already toyed with the idea of buying a luxury apartment – after all, who wouldn’t want to live in a high-end apartment with high ceilings, exquisite décor and top-of-the-line furnishings?
However, since luxury apartments are not exactly cheap, there is a good chance you must be second-guessing your decision or are struggling to determine if buying luxury real estate is a good idea for you. If that’s the case, we have put together some noteworthy pros and cons of investing in luxury apartments that will help you figure out your best course of action.
Though before we discuss the advantages and disadvantages of this particular property investment, let’s take a quick look at what luxury apartments actually are.
What is a Luxury Apartment?
A luxury apartment is a large, modern and high-end space that includes all the latest amenities you can think of. They are situated in premium locations and are artfully designed to reflect an extravagant lifestyle. Luxury apartments are known for both their aesthetics and functionality. They boast lavish décor, have high ceilings, top-quality furnishings, great views, and usually come equipped with the latest electronic appliances.
Apart from their luxurious interior, these high-end apartments usually come with a host of other facilities as well, such as concierge service, luxurious lobby, reception, covered and/or valet parking, swimming pool, fitness centre and spa, on-site movie theatre, and much more.
Compared to other types of apartments in Pakistan, luxury apartments are perceived as exclusive and elite.
Pros of Investing in Luxury Apartments
There are quite a few benefits of investing in luxury apartments. For starters, they offer a lot of amenities that most other apartments don’t. Secondly, they are usually large and well maintained. Thirdly and most importantly, they are more private and secure than regular apartments.
However, for your convenience and comfort, we have jotted down some major advantages of investing in luxury apartments.
- Bigger Space
- Latest Amenities
- Ideal Location
- Secure Environment
- Increased Rental Value
Let’s discuss each of these benefits of luxury apartments in further detail.
One of the biggest advantages of premium apartments is the space. Apart from having more square footage, these apartments usually feature an open floor plan, making them look big and spacious. The high ceilings and large windows also contribute to the factor. The balconies in these apartments are also quite large, allowing the residents to treat it as an open-air seating area by placing some outdoor furniture there.
If you are moving to a flat from a house and have a lot of personal belongings, you should consider investing in a luxury apartment. It will save you from downsizing your furniture and other household items.
Not many houses come with well-equipped gyms or swimming pools. However, one of the most enviable perks of investing in luxury apartments is that they come with a wide range of lavish amenities all housed inside the same complex. These include indoor fitness centres, rooftop recreational areas, sports facilities, mosque, secure car parking, children’s play area, well-maintained gardens and lot more. Most luxury apartments also offer concierge and valet services for both the residents and guests.
All of these amenities and facilities promise a quality lifestyle, making premium apartment-living much more comfortable and convenient than independent living.
High-end apartments are usually situated in the best urban locations that are top of the list for real estate investment in any city. For example, the luxury apartment project of Emaar Crescent Bay in the posh neighbourhood of DHA Phase 8, Karachi, is a beachfront development. The premium location of these luxury apartments for sale in Karachi ensures the residents will be able to enjoy panoramic views of the sea as well as have access to private and common beaches.
In a similar fashion, the luxurious project of Eighteen, Islamabad, is located near Kashmir Highway and can be accessed through Lahore-Islamabad Motorway. Furthermore, it is situated at a 20-minute drive from downtown Islamabad, making it an ideal place to invest in if you want to live close to the city without having to suffer through noise pollution and traffic jams. Luxury apartments in Lahore are mostly located on the outskirts of the city as well.
Are you still wondering why people invest in luxury apartments? Well, one of the biggest reasons behind the growing popularity of luxury real estate in Pakistan is that these projects usually have more security than regular apartment complexes. Similarly, they are also much more secure than independent homes, as they come with a property CCTV surveillance system, state-of-the-art security alarms, intercoms and much more.
Premium apartments also have secure boundary walls and entrances, separate quarters for security guards and surveillance rooms. In case of fire and other emergencies, luxury apartments are also equipped with the latest fire safety systems and feature emergency exits.
Increased Rental Value
If you are planning to buy a property and then put it up for rent, investing in luxury apartments can be really profitable in the long run. The top-notch amenities and modern design of the apartments make them highly attractive to young professionals seeking a rental home. This results in a higher rental income and a better quality of tenant.
In case you ever decide to sell the property, rest assured your luxury apartment will fetch a higher price than most other types of ready-to-move properties. These factors make investing in luxury apartments a good investment decision.
For more details on the topic, check out our guide on types of rental properties to make an investment in Pakistan.
Nonetheless, now that we know the pros of investing in luxury apartments, let’s take a look at their biggest drawbacks.
Cons of Investing in Luxury Apartments
Just like everything else, there are a few disadvantages of investing in luxury apartments that need to be discussed.
- More Expensive
- Personalization Restrictions
- Higher Cost of Maintenance
Here is a bit more detail about each of these cons of buying a luxury apartment.
Premium apartment living may be comfortable and stylish, but it is also very expensive.
Owing to their amenities, facilities, square footage, and location, luxury apartments are usually much more costly than ordinary apartments. In addition to that, the amenities can be quite pricey as well. Gym, swimming pool and other memberships can cost you a pretty penny every month, putting a dent in your bank account.
Therefore, if you are looking for real estate investment within a particular budget, buying a luxury apartment may not be the most practical option for you.
However, if you don’t want to settle for something less, here are some expert tips on how to save money to buy a home in Pakistan.
Luxury apartments usually come pre-furnished with a particular design and theme. That means you cannot customize it to your liking by changing the colour palette, switching up the theme, replacing the furniture or opt for a different design. Not having the liberty to add your personal touch the décor can make your new apartment feel less like a home and more like a lavish hotel room, which is the last thing anyone would want.
However, if necessary, you can always spend a few bucks to replace a few pieces of furniture in your apartment or make some changes in the décor to reflect your personal style.
Higher Cost of Maintenance
Lastly, luxurious apartments can be a little difficult to maintain. Due to their size, features and amenities, maintaining such an apartment can cost a lot of money. Moreover, luxury apartment complexes usually charge the residents higher maintenance fees for the care and upkeep of the building, which could put a drain on your resources.
As a homeowner, you must also prepare yourself for occasional renovations, property taxes, high insurance premiums, house fixtures, utility bills and much more. Here are some more hidden costs of owning a home that all property owners must know about.
The bottom line here is that investing in luxury apartments can be quite lucrative, as long as you’ve got the budget for it. Whether you plan on living there or put it up for rent depends solely on your personal needs and preferences. Though if you want to make some money out of your investment without compromising on its ownerships, renting out your luxurious apartment can be a good idea in the long run.
Take a look at our complete guide on how to rent out a property in Pakistan for more information.
Meanwhile, if you have any questions about the pros and cons of investing in luxury apartments or real estate investment strategies, feel free to drop us an email at firstname.lastname@example.org or post your query on Zameen Forum.
To learn more about luxury real estate trends and when to invest in real estate, stay tuned to Zameen Blog – the best property blog in Pakistan. Also, don’t forget to subscribe to our newsletter and Facebook page to receive the latest updates about construction and real estate trends.