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Location holds high value

  • Purple Realtors by
  • 02 February 2018
Location holds high value

Pune

Physical, social and economic infrastructure of the location is a key determining factor during the home-buying process.

The price of properties on the border of any city in India could be a case study in urban housing economics. A 2-BHK property in the city would cost no less than double the price of what a similar house in the peripheral area could fetch. Yet, many property buyers prefer to buy their dream home within city limits, and don't mind spending additional money for it.

Buyer's quest:

The quest for homebuyers, who can afford, has always been a property that falls within the city limits. It definitely suggests how important the address is and to what extent the word 'location' matters.

Property evaluation:

How does one evaluate the property in the given micro-market in the right context? What makes location so important? Is it just the land competence or certain project's DNA to stand out as investment magnets? Analysts across the realty spectrum maintain that the answer to these questions is not so simple. This is because the dynamics of land cost per sq feet cannot be the only evaluation metrics. The social profile and aura of the given location — physical, social and economic infrastructure, connectivity and employment or business opportunities are some of the key criteria.

Future potential:

Analysts also point out that besides the land value, a happening location is one that is not sitting over the past glory or decaying with infrastructure bottlenecks. The future potential of realty development is also cited as one of the main metrics to evaluate the location. Today, it is the connectivity, proximity to workplace and social infrastructure that make 'location south' of all the major cities the ‘king of the location's in that given geographical territory.

Experts speak: 

location traction of any given city is due to its connectivity. He points out that in most of the cities, the south location does not only have some of the best bungalows and apartments, but also these locations are extremely well-connected to the Central Business Districts (CBDs). "I agree that physical infrastructure in some of these south locations are not up to its positioning, but I think it is only one aspect to evaluate a given property market and there are other equally relevant issues to be seen — like social infrastructure and distance to workplace,".

it is due to the psychological 'you announce yourself' syndrome (when you buy a house in these parts). According to him, this phenomenon still continues; however, with passage of time, more and newer areas are competing with the legacy locations and attracting the younger rich and the neo-rich. "Different cities are seeing this happening. Extremely limited new supply of residences in prime neighbourhoods is the most influencing reason of the rich looking out for other areas for contemporary luxury homes," .

Location is a combination of many inherent catalysts like physical, social and economic infrastructure; connectivity and distance from CBDs. Projects in such locations try to match the amenities and offerings to invite the higher segment of home-buyers, thus making the given location a veritable investment magnet.

What constitutes a great location to invest?

Analysts across the realty spectrum maintain that the answer to this question is not so simple. This is because the dynamics of land cost per sq feet cannot be the only evaluation parameter. The social profile and aura of the given location — physical, social and economic infrastructure, connectivity and employment or business opportunities are some of the key criteria that determine a buyer's willingness to buy a house in that area.