Price-competitive yet spacious housing units, improving civic and social infrastructure, better lifestyle and the advent of renowned developers in the suburban locales of various metro cities are attracting end-users and investors alike. Popular localities close to the city centre are, however, suffering on account of price inflation and space saturation. These are the primary factors making suburbs popular amongst the new age investor.
The decision to buy in a city or a suburb should ideally be a function of your requirements and expectations from the property. If you are looking to buy a property for end-use, it makes more sense for you hunt for a house in the city. However, if you intend to buy a property for investment, suburbs may yield a higher return because of a low ‘ask’ price in comparison to the housing inventory available in the city. Let’s take a look at both the options individually.
Investing in cities
Investing in cities gives the advantage of established social and physical infrastructure and robust connectivity. Thus, if you are buying in a city, make sure that the locality is well connected and has all basic facilities such as schools, hospitals, banks, among others in proximity. Try and invest in a re-developed locality. This may help you save the cost of repairs and maintenance that you would have to otherwise pay for in a property in the city.
Bear in mind that more often than not you would have to settle for a re-sale property in the city. Thus, be wistful about the age of the property while negotiating the ‘ask’ price with the seller.
If budget is a constraint, you may look for properties in the fringes of premium locations. This way, you stay connected with the city centre while being able to crack a comparatively affordable deal.
Investing in suburbs
If you are planning to buy a property purely for investment or for long term end-use, it makes economic sense to opt for the suburbs.
Peripheral locations and suburbs of almost all metro cities have become hot realty pockets off late due to saturation in the cities. However, infrastructure is still developing and so are most of the residential projects. This gives scope for healthy appreciation on the invested amount.
One of the major advantages of investing in suburbs, particularly suburbs of big cities, is affordability. The suburbs carry a price advantage as compared to the cities without compromising on the quality of the property. In fact, projects on the outskirts of the city offer more open space and better amenities such as clubhouse, swimming pools, and landscaped gardens due to easy availability of land.
Another advantage of investing in a suburb is the availability of new properties as compared to the cities where one would usually have to settle for re-sale housing inventory.