Want to buy property? Look for promising destinations

"It is the right time to buy property." Builders and real estate agents never fail to drop in that line every time you check on the property prices with them. Of course, they would also add with some pride that the prices have in fact gone up since you last checked, and it is your last chance to buy a property within the city limits. The current scenario is not any different: the quoted prices are up by 10-20 %, there are widespread delays in completion of projects and there is talk of prices going up further owning to rise in input costs. Obviously, you are confused.

"The current market scenario is not too conducive for investment in properties. Overall, the market has been behaving erratically with no sign of endusers' enthusiasm returning soon. Investors are looking out for sweeter deals as many developers are offering such bargains due to liquidity crunch," says Gulam Zia, national director (research and advisory services ), at Knight Frank India. "Our advice to end-users is to hold on for an impending correction, whereas investors should look around for distressed deals."

"This is certainly not a good time for speculative investment in under-developed areas lacking infrastructure and sufficient market drivers," adds Om Ahuja, CEO, residential services, Jones Lang LaSalle India. However, he is of the opinion that for end-users with a genuine need to buy a home the right time is always now, subject to the availability of a good deal that meets all their needs.

SCOUT FOR PROMISING DESTINATIONS

However, if you are feeling adventurous and wish to bet on property as an investment, you need to carry out a thorough research. The first step would be to identify locations likely to see appreciation in the future. So, which are the cities and towns that fit into this bracket at the moment? "Mumbai is always a good city to invest for the mid-to-long term, though the price points are certainly still prohibitive for smaller investors. I would put special emphasis on Navi Mumbai and Thane. Areas in Navi Mumbai like Ulwe and Kalamboli are very promising," says Ahuja of JLL.

"Pune, Bangalore, Chennai and Delhi NCR are also good options, but one needs to research the available options thoroughly. A blindfold approach will definitely not work." This apart, you can also scan opportunities in emerging locations, especially the ones that are seeing action on the infrastructure development front.

"There have been economic growth initiatives taken by central and state governments like dedicated freight corridor, industrial corridors, special investment regions (not to be confused with SEZs, which are grossly mismanaged) among others," says Zia. According to him, the locations that meet the criteria include Manesar in Haryana, Neemrana in Rajasthan, Dholera in Gujarat, Dadri in UP, Pitampur in Madhya Pradesh and Nashik in Maharashtra.

Source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/want-to-buy-property-look-for-promising-destinations/articleshow/16293308.cms