The growth of suburbs into cities assures better options of returns from the investment in these areas. Property investment in Suburbs is expected to be more attractive and productive than investing in metro cities.
The growing demand for housing units has asked the real estate developers to develop more housing units outside the metro cities. Suburbs around all metro cities like Bangalore, Chennai, Delhi, Kolkata or Mumbai, or any other emerging cities, have seen spectacular growth.
Growth of these new corridors has provided the investors new options. Yet, the investors must approach such locations with a perfect view of investment. The tenure of investment is one of the main factors, that each investor should be careful.
It is never advisable to have in investment for shorter periods in any of the suburbs. If you plan to invest in any suburb, you should plan to invest for a quite longer time- so to say minimum three to four years.
On the other hand, the metro cities and other tier-I cities are more preferable for short term investment. If you invest for a short term also you will be able to gain bigger or higher returns. This is because the property prices are rocketing in all these cities. Moreover the growth potential of these cities is limited. This will assure sustainable returns to all the investors over the time.
Investment on the suburbs must be done only after analyzing the growth factors of the area. Connectivity is an important thing. The proposed connectivity and the existing connectivity must be analyzed well. However if you are not planning to invest for a longer period, you should avoid investing in suburbs.
Another one you should be careful about is the reliability of the builder. If the builder is not reliable, the investment may not bring any better returns as per your imagination. So it is wise to invest in some properties developed by some developers of good reliability.
If you see that the suburbs are connected by some roads, which is proposed to be turned to highways, you can invest. It is advisable also to consider whether any other form of connectivity like metro, or railway, etc. also plays a vital role in the growth of the suburb. Usually it takes years for the growth of any suburb. So, longer term of investment is more profitable here.