Real estate as investment destination

Real estate has always been a preferred investment destination for many. It has great long term benefits and also offers a slew of growth opportunities for the investors. Residential and commerical real estate have yielded their own benefits to buyers and sellers alike over the years. The current slow down in real estate hasnt dettered real estate investors. In fact a few shrewd investors are using the market slump to buy up larger packets of land. If you are looking to invest into real estate in India then there are a few areas that offer very high growth potential.

A few factors to keep in mind before picking up a real estate property are:

Apreciation rate

These can range from 5- 30% in the real estate market and if you are looking for a higher return then finding a suitable location for your investment is key. Gurgaon, Mumbai and Noida are high return real estate sites but even in these locations, particular localities will yield more than others. For example, the Chembur and Bandra areas of Mumbai are high is appreciation and investors can expect a growth of at least 30% of more

Income limit

A property is only suitable if its fits into your planned budget. Everyone has a limit on investment and it may range from a few lakhs to a few crores. This will not only determine the size of land or building you purchase but also might contribute to the kind of location you make your purchase in. Cities like Bengaluru, Chennai , Pune and Delhi NCR have good investment options for investors within the 40 lakh range. There are several options ranging from plots to apartments to individual homes and commerical buildings.

Historical Price fluctuations

It is always good to delve a bit into the way the prices have moved in the location you are choosing to buy property. Certain places show steady growth and some migh show a stagnation. These are still safer bets to invest into. It is the ones that show high range fluctuation in prices that you must be wary about. These properties are generally part of new developments and may not come with the adequate basic amenities to develop your property. Price fluctuations will also give you a good indication as to how much average growth you can expect over a period of time.

Development in the area

Social infrastructure is essential if you are looking to develop the property into a residential one. These will help give a boost in price and will also help in faster sale or rental revenue. Water and sewage connections, good roads and even good electricity connections play a vital role in the price of the property. It will do you good to examine these before going in for a purchase.

If you can be an educated and well-researched investor, you are more likely to secure a property that will give higher returns. The real estate market today has shown stagnation, depreciation and in some cases marginal appreciation but the real game is in selecting a property that will hold and grow its value in the long run.

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