Real estate investments are considered as one of the safest bids for investments. However, real estate sector in the Indian context demands more evaluations and strategic planning before investing due to several issues pertaining to the transaction like ownership, payment plans, occupancy certificate etc.
The latest trend that is playing in the market is the emerging locations. It is similar to the microcosm of what is happening in the global economic scenario. When everyone expected China and USA to be economically stable all the time, surprisingly, the emerging market of India has surpassed them in growth rate.
Emerging locations are proactive areas close to the periphery locations of a developed location, where many social infrastructure developments are being undergoing and proposed. Here are some of the factors that urges for investing in emerging locations.
Matured developed markets
The present day developed markets had behaved as lucrative destinations in its nascent stage during the boom period of 2002 to 2013. The prices went up in these markets by 6-10 percent which had provided good capital gains for investors. However, we cannot expect any more significant capital appreciation from these locations as they have become mature and saturated markets.
Affordable prices in emerging locations
Emerging locations offers more investments options at considerably lower prices that the developed cities. Being supported by more infrastructure developments, these locations will multiply your returns over the years. Further, Centre has also initiated ‘Housing for all by 2022’ and the major chunk of homes in this category will be developed in emerging locations, periphery to the major destination.
Value of diversification
Five to ten years ago, if investors were to plan for investing in real estate, they would definitely choose a matured market. But today, with better civic infrastructure growth spread evenly across all locations, today investors can relatively achieve better portfolio diversification with emerging locations than with developed regions.
Risk is priced and rewarded better
Low prices in real estate simply get buyers and investors cautious over risk factors. Real estate, which is mostly the biggest investment in our life, comes with risk, but with prices bottomed up and corrected to low level and element of risk is rewarded well. The market indices can reverse for the better at any time considering the infrastructure developments.