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Aug 03, 2012, 03.40 PM IST
Property investment only makes sense when the investor is fairly assured of a property's appreciation and rental income potential.
Property investment only makes sense when the investor is fairly assured of a property's appreciation and rental income potential. But these days, even normal home buyers are intent on getting the benefit of property appreciation and the possibility of good rental income when they are buying a home in Pune. Gone are the days when a home was simply a home - today, it is also a means for ensuring future financial security.
The Pimpri Chinchwad Municipal Corporation has become one of the most promising areas for property appreciation in Pune today. There are many reasons for this:
- PCMC is a developing area, which means that property rates are still lower than in fully developed areas
It is important for anyone interested in property investment to know how real estate appreciation actually takes place. We have often heard that real estate investment is all about 'location, location, location' and this is largely true. However, we also need to understand what it is that gives a location its investment value.
Another factor to consider is the existing cost of residential property in the location, and the manner in which property prices have moved. For example, if property prices in a location five to seven years ago were half of what they are now, the appreciation potential is definitely high. This is usually the case in so-called 'growth corridors', where a lot is happening every year to develop the area further.
If property prices have moved less than 10-12% over the last five years, it means that the area has very little appreciation potential. This invariably happens in city centres, which have been developed to such an extent that no further development is possible.
What kind of new developments cause property prices to shoot up? These include:
- New roads, widening of existing roads, bridges and flyovers, which improve connectivity of the area to other areas
About Pharande Spaces:
Pharande Spaces is a leading construction and development firm that develops township properties in the PCMC area of Pune
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