Year 2014, for Indian Real Estate Market, is supposed to be a comeback for demand of smaller residential units. The reasons can be – Uncertain Property Market, Rising Borrowing Cost, Slow Economy and Shrinking Living Space in Metro Cities. Not only buyers, smaller apartments are becoming choice of developers too. Not only this, high risks of current market have made the average size of project, smaller. However, the other side of coin is brighter. Come lets know, why to look for smaller units when you go for property search next time.
SMALL PROPERTY SIZES, TO WITNESS RISE IN DEMAND:
Despite of slowdown in property market, small units are still in demand as compared to average size units. Smaller ticket size and high liquidity is attracting both investors as well as end users. Investors like to minimize risk and end users want to reduce cost of living. Thus with the advantages like, Less maintenance charges and Higher Liquidity Value, smaller unites have become choice of both.
BETTER INVESTMENT RETURNS :
In terms of real estate investment returns, smaller properties offer better options for investors as well as end users. In the current situation of liquidity crunch, developers are considering smaller apartments as a good option, as selling them is comparatively easy and can help in improving liquidity situation. Higher profit margins as well as resale opportunities are more easily available with smaller units rather than high-end units. Not only this, the smaller units offer good rental value and occupancy too. All this makes smaller units a good choice for both investors as well as end users.
Current, is a buyers market and holds enough negotiation space. With low entry level capital and high rental returns, property investment at right place can yield good ROI.
KEY FACTORS WHILE SELECTING A SMALL UNIT :
Always look for the location of the project and the amenities while buying a smaller property. Buying small property in big projects can be considered as a wise decision because, even after paying less for the apartment, one can can still enjoy the facilities of the campus. Not only location of the project matters, in case of larger project size, location of property unit in it also matters. It is considered as a better option to go with the units in more open areas. Also, always check for the financial institutions involved in the projects, it can assure that project is approved and has passed through all local laws and industry regulations.
It is always important for the buyer to identify the right spot and right time to enter the market. Even after slow market, a wise investment in the current market scenario can for sure yield high returns in long run.
Alok Kumar Upadhayay