Basic Principles of Real Estate

Greater Noida Properties

(Article written by Praeep Singh, Director Square Meters - October, 2011)

1. Invest in Emerging Areas

I will talk about past trends and won’t talk about the future. As per real estate principles, we always have to invest in emerging areas/ emerging cities/ emerging sectors. We should invest in Plots/ Lands. The best investment would be the plots which will be developed within a township. For e.g. JP plots within a township are returning best today as they have come up with a great infrastructure as a township inside. There are lots of social amenities within township example. Golf, Lake, Stadiums etc. In future people would love to live within that township.

For example, if you would invest in already developed sectors in Delhi or Noida, you’ll find that the prices are already on saturation, you may not get best returns but if you would invest in those areas where the work is either under development or the areas have future projects or plans, you will get best returns. The %age of price appreciation is higher in the areas which are under development. You can get land & plots in better price. The areas which have future plans like future connectivity, upcoming projects, upcoming industries, malls etc. would give you best returns.

Example 1: A situation of 1995 when land in Noida sectors were cheaper than Delhi and many people have said about the area that it would take 10-15 years to develop. May be they were right but people who invested here got up to 300 – 500% appreciations in prices.

Example 2. The similar situation was about Outskirt areas of Noida/ Greater Noida in year 2000.

2. Invest in a Land Or Plot

Another principal of real estate says that best investment is always a land/ plot. The land is limited and price of land will always go higher and higher with respect to time. Plots are not always available to buy and wont’ be always available for sale. You can hardly get any plot in Delhi/ Noida now days as per your choice. Trends and my experience have shown that best returns are always on plots. It is much easier to re-sell the plots rather than flats or house.

3. Focus on Location, Location & Location

Invest on Location and don’t care about PLCs: Few people does mistakes just because of few PLC Charges. They don’t pay PLCs of just 5%, 8% or 10%. However the trends shown that PLCs always pay higher like up to 25% to 50% in future. You can do analysis that Corner Plots/shops sometimes are even 150% higher the price of normal plots/shops. That is the reason that investors grab prime location like park facing, corner during pre-launch.

The below link may help you to make you understand:

http://www.weplan.com.au/the-importance-of-location-when-buying-a-property-real-estate

Real Estate is all about locations. Location means the best city/ best sector/ best township with all kind of facilities, security etc. / best location of your plot like corner/ park facing, east facing, north east facing/ on wider road etc. Where people would love to live and love to make their home.

Corner Shops: We have cases where corner location commercial properties /shops were sold in double of their prices.

Plots on Highway/ Roads/ Wider Roads: Plots on highway, wider roads always have higher re-sale values.

4. Avoid investing in small towns/ villages/ rural areas:

Avoid investing in rural areas. Another principal of real estate is that we neither suggest for too urban nor for too rural. Always focus on upcoming areas nearby Developed Cities. We suggest you stay with Greater Noida/ Yamuna Expressway / Under development sectors of Noida.

For example, if you look beyond, you would be able to find easily below people have gained a lot in terms of appreciation in their properties:

1. In Year 1990, people who invested in under development sectors of that time e.g. Sec. 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 45, 46, 47, 48, 49, 53, 54 etc.

2. In year 2000, people who invested in sectors under development during that time eg. Sec 50, 51, 52, 61, 62, 93A, 93B, 93, 105, 128, 96, 97 etc.

In terms of area in 1990, Noida was under development thus those who invested in Noida gained a lot. Similarly in 2000 when Greater Noida was under development, those who invested gained a lot and similarly we have Yamuna Expressway coming where a lot of development, future plans and a lot of major projects are in pipeline.