Real estate investments, if planned carefully, can be a profitable proposition in the long run. However, most people wonder whether they should buy a property in well-established blue-chip locations or look for emerging areas instead.
While properties in already developed areas are costly and have little downside risks in terms of value, their appreciation potential is also limited. On the other hand, a timely investment in an emerging real estate locality not only provides an affordable entry price but can also fetch much more returns.
But not every locality develops as expected. So, what are the prominent features of a potential property hotspot? Check out below.
No prizes for guessing this. Remember, you are looking for an area where you expect the value of the property to rise significantly in the foreseeable future. Hence, do not get discouraged by the fact that the locality is not as densely populated as other areas of the city. With time, as more and more people acknowledge the potential of the locality, you will witness a rise in population there.
Emerging hotspots are areas that are still developing. The local government and civic bodies keep planning about how to expand the infrastructure of the city. Track those initiatives regularly to know which areas could benefit the maximum from such development projects. Needless to say that such projects prove to be the growth drivers of real estate in those localities.
When centrally located areas of a city become comparatively expensive, people tend to move to neighbouring suburbs which are still affordable. Generally, localities near high-growth areas witness a rippling effect in property prices. Find out how realty prices of a particular locality have moved over the past two to three years and choose a bet at an affordable price.
In addition to the above-mentioned factors, high-growth property areas can also be identified by the slow emergence of offices, tech parks, and educational institutions. Look for certain signs that a suburb is on the move. It could be on account of changing lifestyle features or an easy access to employment opportunities.
Post the property boom era, investments in hotspot properties are the best way to make money in real estate. With educated opinion, the right knowledge and tools, finding a property hotspot is both realistic as well as achievable. All you need is the patience to wait for a few years.