For any premium real estate property, a sprawling balcony overlooking the sea or a picturesque lake enhances its appeal substantially. Such is the timeless appeal of a waterfront property in the eyes of a luxury home buyer.
Moreover, thanks to the increasingly busy lifestyle of today’s homebuyers, there’s an increasing demand for a home that offers a scenic and tranquil environment away from the chaos of the city. In this blog post, you’ll learn the key reasons behind the popularity of waterfront homes among luxury investors.
Unmatched Aesthetic & Lifestyle Appeal
The Allure of Panoramic Water Views
Living in properties with waterfront gives you the chance to enjoy picturesque and tranquil views. You can also enjoy views of the rising or setting sun over these water bodies, showcasing a panorama of colours in the sky.
To give you a clearer idea about the kind of views you can enjoy from waterfront properties, here’s a quick roundup of the types of homes that offer such views:
- Lake Houses: These properties are perfect for home buyers who prefer a more serene atmosphere, as they are positioned close to rolling hills or woods. Moreover, living close to a lake offers recreational opportunities like fishing, boating, and swimming.
- Riverfront Homes: Living in a home with a riverfront offers a dynamic way of life— you can engage in activities like tubing and kayaking in places where water flows constantly. For other such properties, you’ll find features such as docks or riverbanks that offer stunning views.
- Beachfront Properties: Properties with beachfront are some of the most in-demand homes for those seeking a luxurious lifestyle near water bodies. Such properties offer easy access to the shores and the calming sound of waves, providing a refreshing environment away from the din and bustle of city life.
Enhanced Well-Being and Relaxation
Imagine living in a crowded locality with a noisy environment and compare it with the serene atmosphere of a waterfront property nestled amidst nature. You’ll surely prefer the latter since it offers the chance to experience the much-needed calmness after a long and tiring day.
Listening to the wind rustling through reeds or waves hitting the shore can relax the mind and relieve stress, contributing to your well-being in the long term. Connecting with nature through such a serene environment leads to fulfilment, peace and a grounding, which life in the busy city centre can’t provide.
Read Also: Rustomjee Ocean Vista: The Ultimate Beachfront Living Experience in Mumbai
High Appreciation Rates & Limited Supply
Why Waterfront Properties Retain Strong Value
No matter whether there’s a recession or not, waterfront homes retain their value. Such a resilient performance, even amidst difficulties in the overall economy, is due to the limited number of these properties.
Also, the idea of living near a waterfront that offers spectacular views and a refreshing ambience attracts buyers, helping to maintain their charm. The investment potential of these homes is another reason, with a study revealing that waterfront properties are valued at 48% higher than similar properties without waterfronts.
Factors Influencing Their Price Appreciation
The appreciation in the prices of waterfront properties is the combined result of several trends, which include:
- Resale Values Over the Last Decade: Premium waterfront properties have performed strongly compared to other real estate market segments.
For instance, Prabhadevi, a waterfront neighbourhood overlooking the Arabian Sea, has property prices averaging ₹1,68,352 per square foot, reflecting its high desirability.
- Rental Demand for Vacations: These properties also offer significant potential for rental income— the emergence of digital platforms that connect property owners with tourists has led to an expansion of short-term property rentals.
According to recent forecasts, the market for vacation rentals is likely to record a Compound Annual Growth rate (CAGR) of 4.40% between 2025 and 2029.
- Exclusivity & Limited Supply: Properties coming up in the Coastal Regulation Zone (CRZ) in India should be built as per stringent guidelines. This has led to a situation where the demand for such properties outweighs the supply.
For instance, regions in Mumbai, such as Worli, Bandra, and Juhu, that offer beachside properties are known for their luxurious standards of living. This has enhanced the demand for premium homes in the region, leading to a shortage of such properties.
Ultimately, investors benefit from such restrictions, with a limited number of developments in coastal zones, the maintenance of exclusivity, and the preservation of the aesthetics of such regions.
Investment Risks & Considerations
Buffer Zones and Stormwater Drains
- When a property is located near a waterbody, an area around it has to be set aside to protect the environment. As such, construction is prohibited in that area. For example, in Maharashtra, there should be no construction within 15 meters of the land from the edge of any river.
- So, before you proceed to purchase a property in a waterfront residential project, make sure to verify whether the property is positioned beyond this area. With such considerations, you can steer clear of potential demolition or other legal issues.
- Another significant factor in this regard is the distance of the property from a stormwater drain. These drains are constructed to manage the flow of excess rainwater away from the property and thereby prevent flooding.
It’s important to consult local municipal regulations as they may have additional or more stringent requirements based on specific regional needs and environmental considerations.
Maintenance Costs and Weather-Related Risks
- Homes built near water bodies need more frequent maintenance sessions since they are exposed to saltwater, humidity, and/or coastal winds.
- These natural factors may bring about changes in the structures, thus requiring increased costs for preventing corrosion, exterior maintenance, and waterproofing.
So, while you’re considering investing in a home with a waterfront, make sure to count such ongoing expenses.
Local Zoning Laws and Waterfront Property Restrictions
- Apart from buffer zones and stormwater drains, waterfront homes come with legal regulations that need developers to abide by coastal zoning laws and get environmental clearances. As a buyer, you need to verify aspects such as permissions for construction, ownership titles, and compliance with regulations.
- In case developers fail to comply with these rules, they might land in legal disputes or face restrictions on modifying properties.
Read Also: Prabhadevi’s Stunning Sea Views: A Major Attraction for Homebuyers
Conclusion
Choosing a premium home with a waterfront is one of the best decisions you can make. This is due to the sound investment potential of the segment and the breathtaking scenic views that such properties offer.
Before making a choice, don’t forget to consider factors such as price appreciation trends, rental demand, the presence of buffer zones and stormwater drains, and the legal compliances relating to the property.
Working with a reputed developer like Rustomjee gives you access to premium properties that comply with all legal regulations. To know more about waterfront properties, reach out to us today.
FAQs
- Which documents are needed when purchasing a waterfront property?
The essential documents required for purchasing a waterfront property include the Title Deed, Sale Agreement, Khata Certificate, Completion Certificate, Possession Letter, Encumbrance Certificate, and a No Objection Certificate (NOC) for building in the designated waterfront zone.
- What are the best types of waterfront properties that you can invest in?
The best type of waterfront home for you would depend on your needs and goals. In the case of home buyers who seek properties offering high rental income, homes with a beachfront in tourist attractions are the ideal spots.
On the other hand, for those seeking properties with high long-term appreciation potential, lakefront estates and homes in mixed-use waterfront communities are ideal choices.
- What are the factors to consider when renting out a property with a waterfront?
Make sure to know the local regulations with respect to renting properties, the maintenance costs to tenants, and potential vacancy rates during the off-season.
