Sometimes there are attractive real estate deals available for properties situated in emerging localities. Should you purchase property in any such emerging locality on the peripheries or outskirts of the city or in suburban zones? Here’s keeping a few aspects firmly in mind.
Many a time, there are attractive real estate deals in upcoming or emerging localities of the country. The big question is, should you purchase property in such an emerging location? It all depends on the major parameters that we will cover soon. The affordable housing wave is sweeping the country, with multiple new projects being launched in this space in recent times. Simultaneously, WFH and remote/hybrid work due to the pandemic have steadily become a norm of sorts in many companies. Hence, this has led to a major shift in buyer preferences towards bigger and reasonably priced homes on the outskirts or peripheries of major Indian cities, especially those within gated communities.
Tier-1 and 2 cities are the biggest beneficiaries of this second wave of realty development, along with suburban locations near India’s top cities. Many people are looking for affordably priced yet bigger homes with better amenities and quality of life in emerging locations that are far from the hustle and bustle of mega cities. They are also looking for homes with more greenery and open spaces and decent connectivity to major highways, expressways, and transportation options like railway stations. This has naturally fuelled buyer interest in many new and upcoming locations which promise attractive pricing, ample open spaces and better amenities for buyers. Now, to answer the question- should you go for an emerging location? Here’s finding out!
Buying Property in an Emerging Location- Things to Watch Out For
- Location is everything when you buy your home. Remember that you can always change the interiors or exteriors of your home and upgrade it to enhance its value. However, you cannot change its location. Once you select a location, you are stuck with it for a long period of time. Hence, choosing the location carefully is of paramount importance.
- Upcoming areas with huge potential for future development are always good picks. Look for areas which have a decent track record of capital value appreciation and rental increases over the last few years. You can do your homework before investing.
- Areas which have upcoming connectivity and infrastructure projects will naturally benefit from higher appreciation and returns in the future. Watch out for such localities where new highways are being built, or those near planned airports, new railway stations, roads, highways, and other urban infrastructure.
- Of course, some aspects are simply non-negotiable. Check the safety and crime levels in the locality. Ask people residing in the locality and also do your research online. It is always important that you stay in a safe residential zone without high incidence of crime.
- Check whether the basic necessities, i.e. drainage, sewerage, street lights, water connections and electricity are in place along with mobile networks. Check if they are still being developed or are already developed.
- Check the proximity of the location to hospitals, schools/colleges (for children), supermarkets, markets, malls, banks, ATMs, petrol pumps and other necessities. Ideally, you should not have to spend more than 10-15 minutes commuting to any of these necessities. This is a rule of thumb.
- Check the distance to your office even if you are working from home now, or have chosen a hybrid/flexible working system. You should be able to cover the distance smoothly even if it takes time, courtesy transportation options.
- Watch out for possible flooding during the monsoons or bad roads, things which can hinder your experience greatly. Keep an eye out for traffic congestion in the locality during peak hours along with checking the overall level of policing and civic work.
- Do you wish to stay in a mixed locality that is witnessing fast development and becoming a glitzy area or do you want a quiet and family-friendly community instead? Let your lifestyle requirements shape your final decision.
- Of course, negotiate prices wisely. Make sure that you are getting the highest value for your money in terms of available space, configuration, parking spaces, amenities and other offerings from the developer.
If you invest wisely in an emerging locality, it may give you stupendous returns in the future. Firstly, these localities have ample land availability and growing demand, which means that there is huge scope of development. Secondly, the property prices are considerably lower than major cities and well-developed suburban clusters, meaning that you can invest in higher space at a lower premium. The entry barriers are almost negligible in such cases.
If there are metro stations, railway stations, highways, expressways, airports, major thoroughfares, bus stations and other such developments coming up near the project, you can expect rapid appreciation in values. If they are already present or have just come up, then even better for you!
However, there are always some risks of investing in emerging locations including project delays, market slumps, cancellation of proposed infrastructural projects and issues with overall civic amenities, safety or connectivity in the long run. Hence, even if you are firmly convinced about the future growth potential of an upcoming locality, make sure that you take time to do thorough homework regarding the same. Do not just be tempted by unbelievably low prices offered by developers. Take expert advice if you are confused, especially with regard to tracking price trends over the last few years.
