When it comes to buying a real estate property, the location plays a significant role. It determines the quality of your life to a great extent and also the financial implications of the decision.
You may choose to settle in the heart of the city or a quieter part that offers more spacious properties. Your ultimate decision would depend on two main factors: investment goals and lifestyle preferences.
Let’s take a closer look at the factors that would guide your decision.
The Appeal of City Luxury Residences
Having a luxury home in a city allows you to be near cultural and entertainment hubs while also providing better business opportunities.
- Proximity to Entertainment and Cultural Hubs: Residents of urban homes have easier access to various amenities such as museums, shopping centres, restaurants, and theatres. As such, a bustling city life with a whole range of such amenities seems highly attractive to buyers who seek vibrant lifestyles.
For example, living in an area like Chembur in Mumbai lets you engage in cultural activities like theatre and art exhibitions.
- Proximity to Business Districts: Additionally, cities that are commercial hubs make commutes easier for people looking to establish business connections conveniently. This translates to more time saved for professionals who remain busy with work while providing more productive business transactions.
For example, Nariman Point in Mumbai, an area that houses significant corporate organisations and financial institutions, is an important commercial hub. As such, living in Prabhadevi, which is in close proximity to the area, can be advantageous for professionals and businessmen alike.
- Strong Property Appreciation Rates: Another relevant factor in this context is property appreciation, which is better for cities that are near business hubs. Such areas are likely to have a greater rental demand.
According to the Economic Times, values of residential properties in the country’s top six cities increased by an impressive 10% to 15% in 2023. Thus, buying a luxury property in such a city is a much smarter investment decision.
Read Also: Which Are the Best Residential Areas in Mumbai?
Advantages of Suburban Luxury Homes
- Larger Properties and Better Privacy: For lovers of spacious properties that offer much more privacy than urban areas, buying a home in a suburban area is the way to go. In these areas, you’ll find homes that provide better square footage and more open space, inclusive of gardens and yards.
This provides home buyers with the opportunity to live in a more serene atmosphere in the lap of nature and also offers a dose of solitude and privacy that they might enjoy often.
- Green Spaces & Better Quality: Living in residential complexes that are closer to a natural setting also lets you travel to forests, recreational areas, and parks, enhancing the quality of living by reducing stress. It also lowers the risk of airborne diseases, thanks to the better air quality index in such areas.
- Lower Maintenance Costs and Property Taxes: Suburban areas are at an advantage since properties in such areas are valued lower than in urban parts. This results in lower bills for property taxes and lower pricing associated with maintenance services.
Investment Potential: City vs. Suburbs
Investing in suburban vs urban properties would largely depend on financial goals and a buyer’s tolerance to financial risks. However, based on popular market trends, there are some factors that home buyers need to keep in mind when choosing to invest in urban or suburban homes.
- Property Trends in Both Markets: In the past few years, suburban areas have gained traction as more lucrative frontiers for investment. Their comparatively lower property prices and large square footage are the primary reasons behind this trend.
As per the latest data, property rates in prime locations like Prabhadevi in Mumbai have increased by as much as 38.5% in five years, while that for suburban areas like Powai has increased by 27.9%.
When considering investment goals over the long term, suburbs could provide better growth in value due to a higher potential for development.
- Rental Income Prospects: As mentioned above, properties in urban areas often appreciate at a faster rate due to a higher ongoing demand. As such, they offer a higher probable income in case buyers decide to put their properties on rent.
Thus, if you have a greater tolerance to financial risks and are comfortable going for a fast-appreciating urban property with high demand, it will be a lucrative decision. However, if you’re someone who values longer-term financial stability over fast appreciation, going for a suburban home will be a better choice.
Read Also: The Serenity of Beachside Living: What Sets Versova Apart from Other Suburbs
Weighing the Challenges of Both Options
While there are several benefits of living in urban luxurious properties, there also exist several challenges that can affect various facets of your life. Similarly, suburban properties pose certain difficulties that aspiring home buyers should consider.
| Key Differences | Living in Cities | Living in Suburbs |
| Property Values | Higher property values due to strategic location. | Lower property values due to limited availability of high-end amenities. |
| Commuting Time | Shorter commute for work owing to close proximity to commercial hubs. | Longer commuting time resulting from a larger distance from the city centre. |
| Availability of Space | Limited availability of space leads to the lower square footage of residential properties. | Many more spacious properties are on offer owing to the greater availability of space. |
| Cost of Living | Higher cost of living owing to the availability of the best-quality amenities and services. | Lower cost of living resulting from more affordable facilities. |
Due to these key factors, suburban living can seem less appealing if you value convenience over other aspects of life.
Conclusion
Choosing between the city and the suburbs for your luxury residence depends on your lifestyle preferences, priorities, and long-term investment goals. While South Mumbai offers unparalleled connectivity, heritage charm, and a vibrant urban experience, Thane provides spacious homes, greenery, and a growing infrastructure at a competitive price.
At Rustomjee, we offer an array of luxury properties in both urban and suburban areas that are created with eco-friendly construction technologies and insightful designs. To learn more about any of these properties, contact us today!
FAQs
- Which offers better returns: city or suburban luxury homes?
Urban luxury homes usually offer faster appreciation in value in the short term. On the other hand, suburban homes can provide greater returns in the long run based on development projects that are likely to come up shortly.
- What are the main lifestyle differences between city and suburban living?
City living offers fast-paced lifestyles, premium amenities, and better connectivity, while suburban living provides more space, greenery, and a quieter, family-friendly environment.
- Is it easier to sell a luxury home in the city or the suburbs?
The location of a home significantly impacts its resale value. City-centre properties tend to sell faster due to better connectivity, high-end facilities, and business opportunities, while suburban homes may take longer to sell due to longer commutes.
