Today on ET Wealth I read an article on high rise buildings. Why cities started embracing this new realty idea is out of no surprise. The builders claim people look for better view and cleaner air. Many builders such as Hiranandani, Hafeez Contracter say high rise buildings are safer than normal buildings. They can withstand upto 6-6.5 magnitude in richter scale. The materials used are fire-proof. One builder claims high rise give iconic status. A 117 storey building in Mumbai will rewrite the history of Indian realty scenario as the dwellers have preferred 10-20 storey buildings so far.
The cost associated with high rise buildings is huge as the time taken to complete a project is around 4 years unlike the time taken for normal buildings which is usually 18-24 months. As the builders face the huge construction cost, they pass the cost burden back to the customers. Though a flat in a high rise costs almost twice the amount that it would take to own a flat in other buildings, high rise building offer no economic value. Undivided share is next to impossible for high rise buildings. Maintenance cost is huge and the builder does not walk out once the construction is over. He runs the maintenanace as a profitable venture since running an association by the oweners will be very difficult.
Apart from view, pollutiom-free air and state-of-the-art amenities, high rise buildings are not for the ones who want to invest in a property that will remain in his name forever.
My suggestion is if you are a HNI and willing to shell those extra bucks and pay wealth tax, go for it. Otherwise invest in a flat which makes good economic sense.
The cost associated with high rise buildings is huge as the time taken to complete a project is around 4 years unlike the time taken for normal buildings which is usually 18-24 months. As the builders face the huge construction cost, they pass the cost burden back to the customers. Though a flat in a high rise costs almost twice the amount that it would take to own a flat in other buildings, high rise building offer no economic value. Undivided share is next to impossible for high rise buildings. Maintenance cost is huge and the builder does not walk out once the construction is over. He runs the maintenanace as a profitable venture since running an association by the oweners will be very difficult.
Apart from view, pollutiom-free air and state-of-the-art amenities, high rise buildings are not for the ones who want to invest in a property that will remain in his name forever.
My suggestion is if you are a HNI and willing to shell those extra bucks and pay wealth tax, go for it. Otherwise invest in a flat which makes good economic sense.
