Why to invest in Mumbai's peripheral areas

There are many areas in the MMR and its periphery, which can be looked at as promising realty destinations. And the ongoing festive season could be the right time to make your investment.

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Mumbai's peripheral realty locations have always performed well, even at the time of the slowdown in the property market. During this festive season, peripheral locations are displaying immense promise, say experts.

Shailesh Puranik, MD, Puranik Builders Pvt. Ltd says, "Mumbai's peripheral locations have proven very attractive in the recent past as far as housing sales are concerned. Infrastructure development has played a major role in bringing these peripheral areas into focus. Mumbai has only limited land available for development unlike some other major cities of the country."

"Hence, real estate prices have skyrocketed in the recent years. Prices have soared so high that homebuyers in the middle and upper middleclass segments can't afford them. Affordable and quality lifestyle projects are currently only available at locations such as Thane, Virar, Kalyan-Dombivili, Badlapur and other such places. The development of infrastructure such as the Santacruz Chembur link project has reduced the travel time between Thane Mumbai to 25 minutes from the earlier 40-45 minutes," he adds.

Home-buyers find properties in the peripheral regions to be affordable; in addition, these areas also provide advantages such as a more peaceful environment as compared to Mumbai, less congestion and a great ambience.

Hence, a large number of home-buyers are flocking to these regions. To cater to this demand, property developers are coming up with innovative offerings and discounts to tap home-buyers during the festival period such as the upcoming Diwali.

Experts revealed that for the peripheral locations, builders have come with various strategies to attract prospective buyers. These strategies include attractive offers. People are already in a mood to buy property and such offerings make even peripheral properties an attractive option.

Source - TOI

Tips for investing in a property in upcoming areas

Consider these takeaways:

• While building a house, keep in mind that building the layout would take close to 5-6 years
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• For immediate rental returns, opt for apartments. Check whether you can wait for rental returns till the layout develops
  
• If you are looking for capital appreciation, remember you have invested early in the development cycle so, while you have the price advantage, capital gains might take time…about 5-10 years
  
• Study the potential of the area. Check what is coming up in future - whether companies, housing or developer firms? Is connectivity going to get better?
  
• If a metro rail is coming up, there is scope that property values will rise by 15-20 per cent. Similar trends have been noticed in Delhi values along areas where the metro was constructed
  
• Do your homework and know whom you are buying from. If a national bank or a recognised private bank agrees to sanction your home loan, your money will be safe.
  
• You can and must verify whether a developer has defaulted for loan payments to banks or other financial institutions. Banks categorically list the names of such defaulters in the public domain and a scan of this list is critical for evaluation.
  
• Safeguard your interests while buying into a project by ensuring the developer has a credible partner such as a real estate fund or private equity player. This means that the partner has done full due diligence and bodes well in terms of timely completion.

Source - MB