Oct 12

luxury-villas

How To Identify A Potential Growth Area In Chennai

As you know, real estate is one of the best investment options. If you invest your hard earned money in a property, it is a wise choice. And you can able to earn a good profit as much as possible, but it involves a few risks. You need to be very smart when you’re investing in real estate. The major things which you need to concentrate are the location of the property. The area in which you plan to buy a property should have some positive growth so that the price of the property will get increased at the future in a short time and this will yield better returns. Here we’ll discuss few points on how to identify a potential growth area to buy a flat in Chennai and this will help you to yield a better return.

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Gentrification

If you are planning to buy a property, the first thing which you need to consider is gentrification. And you should keep this in mind before you choose a particular location to buy a property. When you plan to buy a property as an investment, you should always choose the areas which are experiencing gentrification and it leads to the rise in the price of a property. And the best way to find that area is to look at the residents of the area.

Infrastructure Development

Before buying a property in Chennai, you need to look at the infrastructural development like amenities, proximity to all areas, connectivity, and transportation in that particular area. If all these factors are fine, then it would certainly be a great bet for investment. Even you need to check for the highways, restaurants, schools, malls, hospitals, bus or railway stations. If all these are close to your property, then it shows a good sign for you to purchase a property in that location.

Apply Ripple Effect in “Real Estate”

Did you ever hear about the “Ripple Effect”? When you throw a stone in a pool of water, the ripples will spread and the waves will reach the edges of the pool. And the same concept, you need to follow, before you buy a property in India. Like, you need to find the location which is experiencing this effect which means look for the areas which are experiencing a high growth and development. And then, check for the adjoining areas and find out the variations in prices.

Cash-On-Cash Return

When you make an investment in the real estate sector, you should be aware of this cash-on-cash return. When you buy a property, calculate the estimated cash flow, cash equity, cash invested and find out the cash-on-cash return and if it is positive, then you can say a big yes for investing in a particular property in that area.

Supply & Demand

When you search for a property, examine the supply-demand dynamics of the property in that area. This ratio will help you to determine the price growth. You need to check the property supply and compare it with the demand for property in that area to examine this factor. If the supply is less when compared to the demand, then the price of the property will surely rise in the next coming days. It is sure that the areas with high-demand and low-supply dynamics, will have a high rental rate.

Whenever you buy a property as an investment, just look for greater returns. Find the key location based on the factors which are mentioned above. Analyze the results which you get and if it shows a positive sign, it will be a good fit for investing your hard earned money. Just utilize this great opportunity and there are many locations where you can find luxury villas in Chennai, if you invest then it will be a good investment and don’t miss out this amazing opportunity!

 

As you know, real estate is one of the best investment options. If you invest your hard earned money in a property, it is a wise choice. And you can able to earn a good profit as much as possible but it involves few risks. You need to be very smart when you’re investing in real estate. The major things which you need to concentrate are location of the property. The area in which you plan to buy a property should have some positive growth so that the price of the property will get increases at the future in a short time and this will yield better returns. Here we’ll discuss few points on how to identify a potential growth area to buy a flat in Chennai.

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