Beginning from the very basics, some of the most primary emotional values that individual associates with when investing in a property are tranquillity, comfort and value for money. Now that it has been two years with people operating in WFH culture, and literally triumphing over its monetary benefits in terms of the huge chunk of savings; amid all this peripheral city /areas have emerged as the clear winners in terms of preferred choice.
The three major aspects to keep in check when making a real estate investment are the current market price, scope of appreciation and the surrounding infrastructure. The knowledge of surrounding infrastructure is really important as it helps in mitigating the scope of investment on long-term basis. Additionally, here are few more highlights on the rising relevance of peripheral cities for real estate investment-
As per recently released CII-ANAROCK Consumer Survey, 41% respondent property seekers may buy a second home for personal use, 65% respondents who work from home will opt for bigger houses, 68% prefer peripheral/suburban areas. This clearly indicates that specially the category of end-users is open to remain remotely far from the hustles of urban city just so they can grab a bigger space. The metro cities are not only densely populated with residential and commercial structures but has land prices fairly higher for a first-time buyer. Conclusively, for this set of buyer/investors peripheral cities are emerging to be the ideal choice for investment due to immense space and proximity to metro city.
Scope of appreciation
The peripheral locations when compared to the crowded urban cocoons offer a safe and long term investment plan. As the infrastructure surrounding the region develops overtime, and with scope of more land banks available there is chance of establishing bigger structures. Additionally, the rate of price appreciation gets better and better with time and each surrounding development.
As much as 58% of around 149,000 homes launched in 2020-21 are located in the peripheral areas of the top 7 property markets, showed data from Anarock research. The pandemic has had a significant impact in terms of project launches around this region. Since most of the properties in peripheral areas are in their primary stages of development, the lower price point not only makes it attractive but also makes the overall transaction a smart one. With homes shifting to peripheries, it is highly likely that large employers will occupy some space or open their smaller version of commercial centres/hubs to be in proximity for corporate professionals. The advent of such commercial spaces will be giving a major boost to the overall region's stature and value.
The CII-ANAROCK Consumer Survey mentioned above also highlights that attractive pricing continues to rule the roost of must-haves, established developer credibility is the second-highest priority for 77% of the surveyed buyers. Project design and location also feature prominently on the wish list.
Location being the deal-maker/breaker for closing property transactions has gained a new nuance with peripheral cities coming into the picture. The newly developed areas are being equipped with elements of modern layout & architecture. This makes them an attractive proposition to consider not only for local but also global investors and NRI buyers. Post-pandemic with digitalization gaining better grounds in real estate homebuyers are keenly exploring the options in each category from property search to documentation and legal advice to down payments, each and every aspect is accessible via a single click.
Lastly, it is crystal clear that realtors with sufficient online presence will rule the roost going forward. Strong and strategized social media presence will be among the most effective technique in marketing your property on the right platforms.
Authored by Siddharth Maurya, Resource Specialist - Real Estate and Fund Management