Property investment in India is a long-term commitment that requires careful consideration and financial planning. Therefore, it is critical to properly consider a few important factors before investing in real estate.
The top factors and a popular mantra for the best property investment have been location, location and location. But what are the factors that make a good location? Let’s find out.
Five Factors that Characterise the Best Place of Investment in Property
Good shopping centres, local markets, educational institutions, entertainment centres, gardens, public transportation, religious spaces, etc., are some of the primary amenities that decide the best house location for you. The list of desired civic amenities will differ from person to person. Young couples may look for proximity to offices, schools and entertainment centres, while a retired couple may give priority to hospitals, religious and community centres and so on
When considering the best place for investment in property, make a point to visit the location at different times of the day to determine the safety aspect. Proper streetlights, low crime rates, provision of security guards at the property, etc., are some of the few security aspects that you consider.
Connectivity plays a major role in deciding the desirability of a location. Look for locations that are close to railway stations, bus stops, metro stations or on major roads that connect major parts of the city and neighbouring areas. Again, the nature of connectivity can be a subjective concept. A person travelling by the Mumbai locals daily would prefer easy connectivity to the nearest railway station; however, one who travels by their personal vehicle will like proximity to the major roads or highway.
Apart from all the present features and benefits offered by a location, it is imperative to look for future growth and development prospects. An undesirable location today may suddenly become the best property investment with a plan for airport construction. Similarly, if a major employer decides to open a sprawling office space, a hitherto peripheral location of a city might become a good location with the influx of existing and prospective employees.
Most home buyers equate a good location with a premium or upscale neighbourhood. For instance, in Mumbai, the South Mumbai locale is considered a ‘good’ location simply due to it being a conventionally ‘posh neighbourhood’. The quality of a neighbourhood depends on its overall popularity, type of residences and views offered, etc. Certain neighbourhoods tick all the right boxes, making them the best house locations.
As we saw above, there is a defined set of factors that make up a good location in a city or town. At the same time, as a buyer, you may have your own set of specific preferences about a locality, and it may or may not contain the general factors that others may look for.
That’s okay because apart from being a calculated property investment in India, buying a house is also about personal choices and preferences. So, the perfect location, while decided by a set of objective aspects, is more often a choice made up of personalised criteria.
Why is a good location important for property investment in India?
When analysing the potentials and liabilities of a property, especially residential real estate, good location should be a primary consideration. The best house location offers good infrastructure, better connectivity, seamless public transportation, higher safety, etc. All these factors increase the desire and demand for such properties. This, in turn, raises prices and improves the resale value of such properties.
What are the types of infrastructure that determine the best house location?
Not just physical social infrastructure, but all facilities that aid in ensuring a comfortable and accessible living, should be considered when looking for a good location for your house.
- Road connectivity
- Educational institutions
- Healthcare infrastructure
- Sewage and sanitation
- Water supply
- Electric supply
- Gardens, parks and green spaces
- Entertainment infrastructure – malls, multiplexes, shopping centres
- Restaurants and places to eat
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