The Indian real estate landscape has witnessed an unprecedented rate of growth, leading to accelerated development of infrastructure in developing sub-urban areas. Real estate investors are spoilt for choice with investment possibilities in every part of the country, with the development of residential and commercial real estate projects presenting extremely attractive opportunities for those who wish to own a second house, perhaps for additional income from rental agreements or as a weekend and holiday getaway that is an escape from the bustle of living in a city. With so many different options for investments, here are some of the most important factors for real estate investors to consider before settling on a property to invest in:
- Property Location:The location of a property has always been the most reliable and important factor in determining the value of a property and its potential for investment returns. The general rule of thumb is, the more developed the surrounding neighbourhood the higher the cost and potential returns. A residential or commercial property in Ahmedabad, Bangalore, Mumbai, and other developed metropolitan cities would cost significantly more than real estate in smaller cities.
- Property Valuation: The valuation of the property involves several factors such as the insurance premium rate, analysis of the investment, forecasted taxation rates on the property, depreciation of the property or any of its assets, and the potential future growth of the neighbourhood and the property.
- Potential for Appreciation:The single most essential factor in choosing a real estate investment is the potential for appreciation of assets through future developments. While any potential appreciation is heavily dependent on favourable market scenarios and the location becoming a site for the development of infrastructure, investors should be assured of substantial growth before committing to an investment as real estate investments typically have a high value and moderate risk profile.
- Features and Amenities: Investors should research the amenities provided with the property and the features of the surrounding neighbourhood such as healthcare, education, and shopping centres. A well-located property with excellent amenities is desirable even from a pure investment perspective, as it would have a higher valuation and therefore more returns, both in asset value and rental income.
- Documentation and Ownership: The transparent provision of authentic, original documentation, including a clear title of ownership, adherence to RERA and any local governing or municipal body codes, and loan eligibility, with legal registration and tax duty, is an absolute necessity to guarantee the credibility of the purchase. Investors should also look at the background of the property developer.
Investors looking for 2, 3 and 4 BHK flats in Ahmedabad with a good potential for investment can look to the Adani Shantigram township, which offers a wide variety of luxury, smart houses at reasonable prices. The property is located on the Ahmedabad-Gandhinagar corridor, one of the most rapidly developing sites in the country.