Investing is a science known by many but mastered only by a few. Perfecting investments and then timing them perfectly, requires a deep understanding of the asset under scrutiny and even superior research. Talking in simple terms, for people like you and me, we need an advisor who would do this for us. But do we trust him entirely? Don’t we always like to be in control of what and where we are investing in and how much? In this article, we would take you through the various research and share our understanding of the underlying asset in question.
Risk and return are the two parameters on which any investment would be classified and obviously both go hand in hand. That is, higher the risk, higher is the expectation of the return. This is because of the additional premium paid on the risk taken. Now taking into consideration the various opportunities available in the market for investments, the one class that is astounding and stands tall when giving returns has been real estate.
Real estate has been used as an investment avenue since like we don’t know when. That longgggg. And it has stayed afloat in today’s dynamic global environment too. Reason? Simple. It has managed to fulfill the desire of the investor, or technically, it has given the appropriate returns for the risk being taken. We have seen our fathers and forefathers investing in land and real estate for years and years. Did they have what it took to get the returns? Did they do any research on the same? Probably no. But consider them lucky as the times were different. The sector was in boom. In today’s world, the same strategy won’t work. But why fikar when we are here. We have researched in detail on the various locations that appear potentially competitive in the tight real estate sector, which analyst suggest wont account for much.
We, having special expertise in this particular field, agree totally with what the analysts have to say. The scope has reduced but not finished. So below are the few gems in the mine that are waiting to be polished and ready to change your lives :
Noida and Greater Noida
Despite being part of the real estate boom, this area appears in our list of the unpolished gems, mainly because infrastructure development, connectivity and lower base price. Particularly the sectors 46, 110, 117 and 120 look set to do well. In the past they have given returns of around 35% but the range seems up bound even though the supply has increased steeply in line with the demand. The areas around Noida expressway are seen to satiate the further thirst of the dynamic market.
Budget (1 bhk onwards)- 14L to 40L
With the connectivity between Gurgaon and Delhi all set to be enhanced by the various infrastructural projects approved by the government, this region is favored to enjoy the benefit of its closeness to the national capital. The metro corridor, would help this area further enjoy excellent returns. Sectors 54 and 73 seem set to be on the boom. The Dwarka expressway forms a major link for the continuous returns expected from this areas.
Budget (1 bhk onwards)- 30L to 65L
Directly linked to the growth of the Information technology field, the inflow of technicians in this city just never stops. The Whitefield area in the eastern part is a current hotspot in the country when it comes to real estate. With large players vying with each other to develop locations in that area, the prices are bound to appreciate over time and a good return is expected in this area. Even in the past, various parts from all over this city have given considerable returns to make the investors happy. The major reason for this continuous push is the rise in standard of living of the people here and the increased salaries.
Budget (1 bhk onwards)- 35L to 80L
Connected to Mumbai in walks of life, this area boasts of supreme growth in the recent past. And the best part is that the growth story is far from over. It’s just nascent. Such is the potential of this area that the price shoot has been considerable touching around more than 20% every year. The population influx in the city is migrating to this neighbor and thus the demand is high and is going to stay the same.
Budget (1 bhk onwards)- 60L to 1.25 Cr
Borivali, Mira road and other western suburbs in Mumbai
With prices sky rocketing in the southern parts of the city, and the limit being exhausted, the demand is also being seen dwindling. In fact on the contrary a correction is expected soon in major facilities and real estate fraternities in the city. But the recent development in the western suburbs, the connectivity being enhanced, the establishment of a permanent metro route, all this have given a push to the prices in this part of the city. The support infrastructure, such as the malls, schools, hospitals and world class living conditions on offer has also contributed to the shift in focus. Borivali and Goregaon has some outstanding “tallest” skyscrapers coming up, work and possession on full swing. Mumbaikars have loved to stay at “top of the city”, rewarding the metro with the title of The Skyscraper city. This real estate boom is expected to continue, inspite of the frisk of more inventories in store than the demand at some areas of the city.
Budget (1 bhk onwards)- 90L to 1.90 Cr
The above stated areas look exponentially budding on the path of appreciation. Remember, every marketing campaign run by mid-size to eminent developers ain’t gimmicks. When they promote something like, “30L onwards…”, it would ideally mean the agreement value of the lowest floor of the smallest configuration. Yet, prevent yourself from falling prey to hidden costs, under-developed areas and lesser known builders. Check out if the construction is in full swing, whether or not some from the “golf courses”, “soccer grounds”, “malls”, “club houses” are already functional. Also, don’t forget to understand the neighborhood, livability quotient for kids and family and the connectivity/ infrastructural developments of and around the property before you think of investing those hard earned bucks on.
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