How to make a smart property investment decision in 2014?

It is that time of the year when you would be accessing all the decisions you have made and probably chalking down most critical decisions of 2014. Stop and think. Isn’t this what you do every year, and may be this time you can take this exercise a little far. Amongst various things to do, financial investments might be one of them, and we will help you make one of the smartest property investment decisions.

This blog is the synopsis of webinar that was conducted recently to discuss property trends in 2014. The insights shared in this webinar are by the industry expert, Maneesh Gupta of Colliers International, a leading global Real Estate Consulting company. Maneesh heads the Valuation and Advisory business for Colliers in South and East India.

4 steps to make smarter property investment decisions in 2014

Where to start?

You might be putting off that thought of investment because of not being sure of where to start and what are the factors to consider before buying? Fret not; there are a few key essentials you should always look for-

Accessibility

Far-flung areas in the city may give very attractive buying prices, however one may have to wait for longer durations for seeing notable appreciation.

Flyovers and Metros

Construction of flyovers & metros has seen a spurt of property prices in these areas. They are sure to yield good returns in future. E.G. Metro Reach 1 is operational and trial runs are on for Yeshwantpur to Peenya phase, these locations have seen a considerable property price surge.

Supply of Water, electricity and ease of sewage disposal

Lack of basic amenities like water, electricity & sewage disposal might deter the property price appreciation.

Defence Investments and physical safety

The best example of this sort of growth is Karvar and Vizag, where the property prices shot up after increased defense spending by government in the city.

What to buy?

Now that the key influencing factors are discussed, the discussion always stops at apartment versus plot. An investor always has the dilemma of apartment or land, addressing this issue. An apartment can generate rental income, which is not the case with a plot. However, in plots typically the appreciation is much more than apartments. Therefore the choice between an apartment and a plot is very situational. Additionally, given today’s scenario there are various options like -

• Luxury villas and budget studio apartments
• For those who would like a little luxury but can't afford it, then ‘Villament’ is a great option

Where to buy?

Now that you have an idea of what factors to consider before buying, here are a few options that are currently trending in Bangalore. Metro phases 1 is operational, the Airport road, Expressway are key growth drivers for real estate development. The image below clearly highlights the hot spots in Bangalore. 

One cannot ignore external factors and amenities that include education, healthcare and entertainment that should be considered before sealing that deal. To cite another example, post the announcement of AIIMS in Bhubaneshwar (Orissa), property prices have gone up in the area. The rentals in Hiranandani complex in Powai, Mumbai are high because of the schools operational there.

What to watch-out for?

By now you are already spoilt for choice and are not sure of how to choose the best investment options. Here are a few claims that you must watch-out for-

Promises that belie past performances

Creditability of the developers has to be checked. A due diligence needs to be done on the past projects that the developer has completed.

Marketing Gimmicks

Let us be very careful of marketing gimmicks. Bangalore has seen its share of gimmicks as well, Audi’s & Mercs free with apartment. People spent the money and have not seen either the Merc or the apartment

Aggressive projections on pricing and completion

What is too good to be true needs to be studied in detailed. Committing a  delivery time and sticking to that is important. Statements such as “Prices increasing from tomorrow/next week/next month” etc., should always be analyzed.The what’s and how’s of investment have been decoded for you. Now it’s your turn to make a smart property decision in 2014. All the very best!You can watch the webinar here !