Raja Airstos News - Expected Appreciation Rates for Commercial and Residential Properties

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.