The possible appreciation levels are the prime factor that
people consider while opting for a property, commercial or residential.
However, it is not possible to calculate an exact appreciation, only assessment
can be made. Many factors come into picture in the analysis; the location, type
of property, proximity to important areas, age, the development that took
place, possibility of development in the future, the level of maintenance done
and the inflation rates could influence the property value.
A property in a premium location, such as close to the city
center, near attractions or near educational/medical facilities would
experience a more or less steady flow of takers when compared with properties
in remote areas. However, of late, many are showing interest in outskirts or
far-fetched areas in view of exceptional development possibilities and much
lower price. This way, you can look forward to great returns on small-level
investment.
A well maintained property is always attractive than those
with poor upkeep. Also, the age of property matters a lot, though it is not
always possible to generalize, a rough calculation shows that a period of three
years is fine.
Many experts are of the opinion that though should be based
on the area, a property retained for a minimum of three years stabilizes your
income potential. And it is ideal to wait for 7-5 years if looking for profit.
Again, certain areas have got immense potential for great returns within a few
months, for instance the Delhi NCR.
Also properties in an area with low tax rates and an
increasing population would have a positive influence on prevailing rates.
Improvement done on the property is also an encouraging factor for increased
appreciation. The supply and demand ratio is yet another factor to affect the
appreciation.
Commercial investments in premier locations could give buyers
steady and safe rental income and property appreciation could be beyond
expectations. In fact, many are of the opinion that a commercial asset is more
income-generating than a residential property.
The initial investment for commercial structures could be
more, but is worth it, points out experts. Still, a detailed assessment of
documents is mandatory for a safer investment.
Below is an overview of some of the prime locations in the
country with great growth potential for residential properties.
With huge infrastructure projects in the pipeline, places
like the Dwarka Expressway, New Gurgaon etc are likely to attract a lot of
commercial and residential buyers looking for significant returns. The eastern
suburbs in the Mumbai city are again potential investment regions. Bangalore
looks forward to a steady supply and the increase in prices has been up to 10
to 30 % within a year.
According to Amit Grover, DLF Director, commercial spaces in
chief Sectors in Noida are worth investing. A mall space of minimum 3,000-5,000
sq ft is needed for an ideal investment in Gurgaon. Bangalore offers many
options like Bannerghatta Road, ORR and Indira Nagar. Areas like Viman Nagar or
Kalyani Nagar are suggested for Pune investors. In Mumbai, Gurgaon, metro regions, navi
Mumbai, thane are good options. Ambattur and Guindy would be viable investment
choices in Chennai.
