Value appreciation matters
Within the property market there are certain 'preferred' parameters that make townships ideal from the investment point of view
If you were to conduct a spot survey of people who have purchased apartments in India over the last decade and ask what the primary motivation was, nine times out of ten the answer would be 'making more money'.
It doesn't matter whether the deal was done out of necessity by an actual user or by an investor looking to generate returns. In both cases, the scope for value appreciation has influenced most location and project decisions.
According to Jones Lang LaSalle, while residential properties may yield lower returns, they are safer as long as they are chosen wisely. For city-based smaller investors, investing in apartments or properties near known market drivers such as IT hubs, large manufacturing units and educational institutions is the most feasible and lucrative option. Rental accruals on such properties represent a source of stable and steady income, while the capital value will invariably appreciate with time.
Two factors play a key role in determining the attractiveness of a flat when it comes to attracting tenants and the amount of rentals that can be charged.
The first, obviously, is location. A location that is in proximity to a BPO hub or television studios definitely increases the lease potential of an apartment. Western suburbs from Kandivali to Andheri score particularly high on this aspect, as do Powai and some areas of Navi Mumbai and Thane as well.
When it comes to the type of apartment preferred, a two-bedroom hall kitchen configuration is ideal. If the project has a swimming pool and facilities like a clubhouse and gymnasium, it becomes even easier to get tenants who will be ready to pay a good amount.
The other type of lease demand is primarily generated by multinationals for their senior managers and directors. Here, the locations have to be near business districts and furnished apartments with three bedrooms or more being the preferred norm. Apartments in complexes with lifestyle amenities at peripheral locations like Virar are also witnessing a lease demand from those seeking a weekend getaway that isn't too far from home.
Even today, buyers ask sales teams a simple question: to what extent will this project witness a further increase? No matter how high real estate prices are or how often home loan interest rates go up; it can be managed as long as the location and project hold the promise of concrete returns in future.
Within the property market there are certain 'preferred' parameters that make townships ideal from the investment point of view
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If you were to conduct a spot survey of people who have purchased apartments in India over the last decade and ask what the primary motivation was, nine times out of ten the answer would be 'making more money'.
It doesn't matter whether the deal was done out of necessity by an actual user or by an investor looking to generate returns. In both cases, the scope for value appreciation has influenced most location and project decisions.
According to Jones Lang LaSalle, while residential properties may yield lower returns, they are safer as long as they are chosen wisely. For city-based smaller investors, investing in apartments or properties near known market drivers such as IT hubs, large manufacturing units and educational institutions is the most feasible and lucrative option. Rental accruals on such properties represent a source of stable and steady income, while the capital value will invariably appreciate with time.
Two factors play a key role in determining the attractiveness of a flat when it comes to attracting tenants and the amount of rentals that can be charged.
The first, obviously, is location. A location that is in proximity to a BPO hub or television studios definitely increases the lease potential of an apartment. Western suburbs from Kandivali to Andheri score particularly high on this aspect, as do Powai and some areas of Navi Mumbai and Thane as well.
When it comes to the type of apartment preferred, a two-bedroom hall kitchen configuration is ideal. If the project has a swimming pool and facilities like a clubhouse and gymnasium, it becomes even easier to get tenants who will be ready to pay a good amount.
The other type of lease demand is primarily generated by multinationals for their senior managers and directors. Here, the locations have to be near business districts and furnished apartments with three bedrooms or more being the preferred norm. Apartments in complexes with lifestyle amenities at peripheral locations like Virar are also witnessing a lease demand from those seeking a weekend getaway that isn't too far from home.
Even today, buyers ask sales teams a simple question: to what extent will this project witness a further increase? No matter how high real estate prices are or how often home loan interest rates go up; it can be managed as long as the location and project hold the promise of concrete returns in future.
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