Well, let me make a guess.
You are sitting in front of your computer, positively confused and extremely muddled. On your right side is the classified advertisement of properties in the prime locations of Bangalore. On your left is a bunch of property classifieds in the outskirts of Bangalore.
You need an answer, badly and desperately.
And your question is this: which side to choose?
Now you think I am that prophet or soothsayer who reads your face or palm and tells your secrets. No, I am neither. I am someone who has an inside knowledge of the dynamics of real estate industry. Without second thoughts I can tell you that your confusion is more than common.
The Torrent of Questions
The moment you decide to buy a property, especially if it is residential one, your family, extended family, your spouse’s family etc. bombard you with a torrent of questions.
Here are a few samples: Is it in a prime location? Is it too far away from the city? Outskirts? Are you crazy? Don’t be a fool, why don’t you buy a property right in the middle of the city?
You already started getting sleepless nights worrying over that major decision you are trying to make. You and your spouse have spent hours and hours weighing your options, chances and potential dangers.
Let’s break the bubble
If I were you, I would straight away invest in a developing outskirt rather than doing a rat-race to get my share of the meat in prime locations.
You ask me why?
- Because investing in prime locations is a notion that is way too overrated in the contemporary real estate scenario.
- Because prime locations do not pre-exist, they come into being through the dynamics of economy.
Let us agree that everyone has family chronicles in which an uncle or a cousin bought his property in an outskirt only to regret that decision later. Let me give you an example from real history:
In 1970s, R. K. Baliga, the first Chairman and Managing Director of Karnataka State Electronics Development Corporation, decided to purchase 335 acres in the outskirts of Bangalore to start a project.
The decision was met with disapprovals: who would invest in the suburbs while the economy inside the city itself is booming? Would people buy land around that area? Will there be commercial/residential development?
Disregarding the objections Baliga went ahead and completed the project, which today is known as “The Electronic City”.
If you are a Bangalorean, you know the promises and prospects Electronic City puts forward for property buyers as well as sellers. Yes, the outskirts of Bangalore are undergoing massive and dramatic changes over the last one decade. It indeed is the right time to make an investment and reap the rewards.
Advantages of Buying Property in Outskirts
Higher ROI: The outskirts of Bangalore are developing in a faster rate owing to which there is a higher ratio of Return on Investment (ROI). Simply put, the outskirt you choose to invest today is likely to become a prime location within a few months.
Preferred Budget: The property rate in outskirts is lesser compared to prime locations. You get the space you want without burning a hole in your pocket.
Superlative Growth: Infrastructure and commercial development are growing by leaps and bounds in the outskirts. Moreover, distant places like Whitefield and Electronics City will be connected by Metros which is sure to accelerate the capital value of the place.
Away from the madding crowd: Of course, you wouldn’t mind a calm setting and some fresh air, would you?
By the way, do you own a vehicle? This is non-negotiable if you opt to live in a developing outskirt. You anyway save a great deal of money by not investing in prime locations. Making a double investment by buying a car will be a smart move.
Be assured, you are not being a fool by choosing a developing outskirt as your investment location. Instead you are being insightful, perceptive and so freaking smart!
Ramesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.
Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil Housing.