The property market in many Indian cities sees increased activity during festivals like Akshaya Tritiya, which are believed to be auspicious for the creation of wealth and good fortune. The positive sentiments associated with such festivals often motivate fence-sitting buyers to take the plunge where they would otherwise have procrastinated further. Developers are well aware of this and seek to capitalize on these sentiments via increased marketing efforts. In that respect, festivals like Akshaya Tritiya can act as a powerful market force.
There is bound to be a slew of special offers for property buyers during this period. Buyers are advised to weigh these for genuine value, and to base their purchase decisions on the inherent value of the property rather than on freebies. Real estate is a significant investment for anyone, and it should not be diluted by mundane retail considerations. The residential market in most of the larger cities currently offers some excellent options for serious home buyers who are willing to do their homework, and the Akshaya Tritiya period could be the best time to take the plunge if the selected property stands up to scrutiny from all investment angles.
Here are some pointers for selecting the right property from the supply currently available:
Don’t judge only by the actual site of the residence, or the cost of the property. Land and property rates do differ from area to area, and this is an important consideration as far as resale value is concerned. But the state of general state of the locality also matters a lot, both from a domestic as well as investment point of view. The neighbourhood locality consists of more than what you can see from your kitchen window.
To get an overview of whether the locality of your intended home is on the way up or down, take a walk or slow drive around the residential and commercial areas. The presence of a lot of vacant, neglected lots, unused shops with ‘For Sale’ signs on the shutters, evidence of inefficient garbage disposal and other signs of decay are definite alarm signs. They could mean that the locality is on the decline, maybe having seen prosperity in the past that is now history.
A steady and balanced neighbourhood can be judged, to a certain extent, by the uniformity of the surrounding buildings. Do you see a high degree of disparity – one that may indicate that people from too many different financial backgrounds live here? Does the neighbourhood look haphazard and unplanned? This may indicate that there is little or no unity amongst the residents, and this spells trouble. It is not a good idea to live in a locality that has an ongoing ‘haves and have-nots’ issue. There is every chance of a high crime rate and personal discrimination amongst residents.
Don’t ignore that state of the roads, or even the makes and condition of automobiles in the neighbourhood. If road are poorly maintained, this would mean that the locality is not considered very important by the municipal authorities. If this is the case, you should not be surprised if the area also suffers from water shortage, frequent electricity supply interruptions and an overdose of religious or political activity.
Look for availability of shopping and grocery outlets, basic entertainment and transport facilities, schools, medical establishments, friendly people next door, and so on. Schools are an integral part of our family system, and even if you don’t have children – or are a bachelor – the availability of schools in the neighbourhood is still important from the resale value point of view. This applies to most other conveniences like public transport, postal facilities etc.
Property rates are not decided on the basis of land value alone – the surrounding infrastructure adds to the value of a location. If you have chosen your location well and are in a progressive and developing neighbourhood, your home will appreciate in value over the years only because of the overall conveniences it will provide to future buyers. This is where the true value of a home lies, and if you plan to buy one this Akshaya Tritiya, do keep that in mind.
The author, Mohammed Aslam, is Jt. City Head – Pune, Jones Lang LaSalle India
