Buying a property is not only just a basic need anymore as it is also an investment for the future. It also instils a sense of pride and achievement to the buyer as it is one of the biggest steps that one takes in life. But investing in a property is not a walk in the park; you have to make a detailed research of the location where you are investing, the property value and how the rates of appreciation are going to be in the future before making any decisions regarding this matter. This article will aim to throw some light on the current scenario of the real estate market and which are the best destination to buy properties to settle down and as a first-time buyer.
One of the Big Four auditors, KPMG, has estimated that the value of the real estate market in India is around 121 billion dollars in 2013. The real estate boom is largely due to the growth of the big cities in the country in terms of employment and easy living. Much of the factors are rooted to the expansion of the IT and commercial industries in these cities. People from all parts of the country come to the big cities because of the employment opportunities and the quality of the education that are being provided here. This has led to the steep increase in the demand for residential properties.
Each city in India has its own characteristic advantages when it comes to realty market that makes them different from each other. When you are investing in a property or buying to settle down there, it all comes down to the place. Investing in a property is usually a good choice when the place has show signs of good returns in the past years and there is scope for further increase in the capital value. For those who want to settle down the location is all about accessibility and condition of living.
Here we have mentioned the best places to buy property for a first-time buyer, as an investment and as a place to live.
Best Place for a First-time Buyer
Buying a house is a difficult decision to make when you are a first-time buyer. Usually the factors that hold back buyers from investing in a property are the high prices of property and financial readiness. It is true that without being financially ready, the thought about buying a house is not easy as the EMIs may be higher than paying rent. Also, as the first buyers are usually young professionals who want to make their first property purchase, the connectivity to office is also important.
After looking at the two most important points for first-time buyers, the best place can be said to be Bangalore. Bangalore has diverse properties having different price ranges and provides good connectivity to major IT hubs. According to the recent price trends, the rates of properties cater to various income groups from the low to high. The connectivity of Bangalore is also well-laid out and all the areas have provide easy accessibility to the commercial and business centres of the city.
Best Place for Investment
Buying a property as an investment depends on the rate of appreciation of the capital value. If the property does not provide good return of investment in the future it is not worth investing in. There are lot of places in India that is developing at a fast pace and a developing city is the best place to invest in properties. Some of the big cities like Mumbai, even though are providing good return in currently, there might be possibility of the market appreciation rate being saturated in the future.
Thus the best places for investing in a property are Pune, Bangalore and Noida. Out of these cities, Pune would be the better option for a number of reasons. First of all being in proximity to the financial capital of India, Mumbai, Pune is preferred destination for a number of multinational companies. Thus there will be high demand for residential properties in the future and as the property prices are still reasonable, Pune is a safe bet for investors. Another major reason that the capital value of the properties is expected to increase is the proposed new international airport in the region.
The October-December 2014 quarter has seen a 7 percent growth in the real estate market of Pune, with a capital appreciation of 2 percent. The figures below show the significant price movements in the city.
Price trends of properties in some of the prominent areas in Pune:
Best Place to Buy a Property to Live
What defines the quality of living of a place? There are a lot of factors like political stability, social environment, natural environment and development from business and commercial point of view. IF you are buying a property for living, it is not an investment from which you will get return but it will be one of the most important life events of your life. That might be the place where you are going to spend the rest of your life. People in India usually buy properties in places they are originally from or from nearby places, but this trend is changing fast. They now want to settle down in big cities with the future of their family in mind.
According to a survey by Mercer, a global consulting company, the best city in India in terms of quality of living is Hyderabad. According to the survey the usual big names like Delhi and Mumbai are ranked below due to the high rate of pollution, and population and traffic congestion. Hyderabad is ranked higher due to the good natural environment, political stability, medical care, reputed international schools and affordable cost of living. The climate of the city is also favourable to the decision as it is temperate throughout the year and also scores higher in the safety index.
Choosing a place for a property is not an easy thing. First of all you need to check out your priorities and make decisions based upon that. As the real estate market has evolved into a big industry, there are a lot of options to choose from for your investment, first home or your dream property to settle down.
Hasib is a foodie and an avid reader with the same voracious appetite. His writings are related to the current real estate scenario and guidelines on choosing the perfect property. Reach him @ twitter, Google+, LinkedIn