Considerations When Investing In A suburb

With Chennai ranking among the top 12 developing realty destinations in the world, it doesn’t come as a surprise to see the realty market maturing into a sector that caters to people from all walks of life. While the elite and the affluent target central localities, the middle-class income group are pushed towards finding homes that fit their modest budget in the suburbs. However, development across all the residential spaces are now being seen in the peripherals. Here we decode a few myths and tell you why investing in the outskirts could be a fruitful decision.
Transformation and Growth
while suburban neighbourhoods like Sriperumbudur and Oragadam are bustling with construction activities, localities within the city have saturated, giving more scope to the peripheral. Apart from adding to the already growing demand of residential apartments in Chennai, these suburbs are transforming into hotspots that are luring many MNCs (Multi National Companies) to set up their bases here due to availability of large land parcels. The employment opportunities are drawing many working professionals who are now choosing to reside close to their office spaces. Investors too are now being lured into investing in these outskirts due to its growing infrastructure.
Strategic Location and Connectivity
Being away from the hustle and bustle of the city, one might argue that outskirts do not enjoy great connectivity- but if you look into areas like Sriperumbudur and Oragadam – connectivity is a factor that is driving the realty demand. Many potential home buyers are now investing in properties for sale in Chennai suburbs like Sriperumbudur only because of its networking. Proximity to National Highway 4 and the road connecting Tambaram to Mudichur and Sriperumbudur has captivated many property seekers mind.
The presence of the industrial belt along Oragadam is drawing many locals to settle down here.
Modest Budgets
Compared to properties for sale in Chennai, capital values for homes in the peripherals are more affordable. Catering to the needs of every working professional, these promising belts offer generous living spaces at pocket-friendly rates. Builders are leaving no stone unturned to ensure that their target audience avail all the basic civic amenities.
Targeting the white collared professionals who work in the neighbouring SEZs, (Special Economic Zones) builders are now creating extraordinary homes. In comparison to the apartments in Chennai, multistorey buildings here are more modern and offer many facilities like schools, hospitals and shopping complexes well within its project. Properties in the suburb are likely to grow more as their is scope for more development. For instance, capital values for apartment in Sriperumbudur have appreciated over 16% in the past one year. According to the current market trends a 2 BHK apartment in Sriperumbudur is estimated to cost anywhere between Rs 2,700 and 3,000 per square feet.
Similarly, land values for residential plots in Oragadam have increased over 25%. The current ongoing rates for residential plots here fall under the price band of Rs 5,500 and 10,400 per square yard.
So if you are contemplating on investing in a property that capitalizes over time then do not think twice before purchasing a property in the suburbs.

Sulabha Kulkarni is a freelance writer and an avid blogger, following the apartments in greater noida real estate sector closely for many years. Her areas of expertise are finance and real estate sector in India

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