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Choosing the right location is one of the most important steps when buying a house or making a real estate investment. However, while every homebuyer/investor would want a prime, well-developed locality as their address, not everyone can afford it. The next best option? Well, zeroing in on a neighbourhood that is about to boom. But the question is, how do you identify an area that’s all set to undergo massive development in the near future? Read this blog to understand the five important signs you should look out for to rightly identify a locality that’s on the verge of transformation.
The 5 Telltale Signs
Boom in small businesses: This is one of the first signs you will see when looking out for upcoming localities. For example, imagine moving into a locality which has no grocery shops or chemists’ outlets in the vicinity. And then, a few years down the road, you suddenly witness a few developments—beginning with shops meeting your basic needs, to restaurants, boutiques, play schools, and beauty salons springing up. Wait a little longer, and even small offices and start-ups will begin to move into the area.
As a resident and investor, this is good news for you. It means that, from an underdeveloped address, your locality has now found a place in the list of upcoming residential areas. While it boosts your convenience as a resident of the locality, as an investor, you can expect your property value to increase manifold.
Investments in infrastructure and transport: An underdeveloped area is always out of easy reach, with poor road and rail connectivity. Once the profile of your locality changes, you will start to see enhanced accessibility—new roads and flyovers, suburban railway lines, and even Metro connectivity in the long run. There will be a major upgrade in social infrastructure as well; you will notice the establishment of new schools, colleges, hospitals, and malls, among others. This will be followed by government projects like public parks, libraries, etc.
Buying a house in an area that’s beginning to witness such developments is an excellent idea. Reason: You can confidently say that you are living in one of the most sought-after upcoming localities in your city.
Change in demographics: Once connectivity to nearby job hubs and social amenities improves, the locality will experience an influx of people from across the country and world. A majority of these will be professionals and young families, for whom proximity to quality educational institutions will be a top priority. Also, an area on the verge of development will be relatively more affordable to upwardly mobile professionals, compared to an already established prime locality.
India’s IT cities like Bangalore, Pune, and Hyderabad are excellent examples of this scenario. With the establishment of numerous IT and business parks, areas that were once considered outskirts are now thriving residential and commercial hubs. People from diverse regions and religions, economic strata, and linguistic backgrounds living together have made these localities a melting pot of cultures, giving true meaning to the concept of unity in diversity.
Enhanced safety levels: Underdeveloped areas typically witness high crime rates. A locality that’s slowly securing its position in the list of upcoming residential areas will also experience rising safety standards. When a neighbourhood attracts new businesses, infrastructure, and population, it stops looking neglected. Public spaces will be well lit and better maintained, curbing the incidence of minor crimes. Surveillance will also increase. Along with the CCTV cameras installed by various individuals, shops, and housing societies, there will be cameras installed by the traffic department and increased police patrolling.
Are you looking for upcoming areas to invest in real estate? Choose a locality that has shown steady improvement in safety standards.
Rising real estate prices: This one isn’t difficult to figure out. When an area begins to boom, both residential and commercial properties will witness a surge in market rates. For example, Yelahanka, which was once considered a quiet suburban neighbourhood, witnessed a dramatic transformation along with many other North Bangalore localities, after the opening of the Kempegowda International Airport in the first decade of this century. Over the last 10 years alone, the area has witnessed a 156 per cent increase in property prices.
In short, if you are keen to make a lucrative property investment, do some research on the five factors mentioned above. If you can spot at least two of these prominent signs, seal the deal without delay.
Advantages galore
Buy your home in an up-and-coming area, and the benefits are many. Here are some of the most important ones.
- Less expensive: Properties in areas that are just starting to develop will be much easier on the pocket than those that are already termed prime localities.
- Less competitive: Once an area is fully developed, demand could outweigh supply, thus making it tougher to find a house of your dreams. On the other hand, when an area is still in the initial stages of development, there will be less competition.
- Better RoI: While the initial investment is less in an area that has not yet fully bloomed, the Return on Investment (RoI) in the long run will benefit you tremendously as an investor.
- Diverse demographics: As mentioned earlier, an area on the verge of development will attract people from all over the globe. In short, property investment in such a neighbourhood can make you part of a vibrant community.
- Buyer incentives: One of the most important signs of an area that’s in the process of development is that it attracts numerous developers. With various housing projects vying to attract buyers, many will offer multiple offers and incentives to the early birds. So, what’s stopping you?
Conclusion
Now that you know how to identify residential areas, find the top ones in your city without delay. Be it for staying or as an investment, it’s a decision that will benefit you later. While it’s important to think long-term when investing in a property, it’s equally crucial to make your home future-ready. Read this blog to understand how.
FAQs
Name some localities in Bangalore that are witnessing rapid development.
Here are some of the fastest-growing residential localities in Bangalore.
East Bangalore: Budigere Cross, Kadugodi, Varthur-Gunjur, Greater Whitefield and Soukya Road.
West Bangalore: Jnana Ganga Nagar, Kengeri Satellite Town, Kamala Nagar, and Nandini Layout.
North Bangalore: Devanahalli, Bagalur, IVC Road, and Thanisandra, to name a few.
South Bangalore: Bannerghatta Road, Kanakapura Road, JP Nagar, and Sarjapur Road
Ideally, how far should a home be from major roads, Metro stations, and railway stations?
While accessibility is important, living next to a major transport hub has many disadvantages, including pollution, noise, heavy traffic, track vibrations, and huge crowds. So, ideally, your house should be located within a distance of 300 metres to 1 km from main roads, railway, and Metro stations.
What are some simple ways to assess whether a property is fairly priced in a developing neighbourhood?
Follow these simple guidelines, and you’ll never commit the mistake of paying more for any property:
- Calculate on the basis of the carpet area.
- Review some recent sales in the same locality to gain a fair understanding of market rates.
- Check the ready reckoner rates.
- Don’t trust unverified claims; check if development projects like Metro stations and multispeciality hospitals will become a reality in the near future.
- Account for hidden costs like stamp duty and registration charges, maintenance charges, etc.
Sources
Legacy Real Estate Team | Levi LaRowe | 99 Acres | Pursuit Real Estate |
