Why are real estate investors in Ahmedabad interested in apartments?

Looking for an independent house for sale in Ahmedabad as an investment but not finding any listings that match your price range? You wouldn't be alone – property prices across the city have skyrocketed due to a drastic increase in demand for residential properties. Ahmedabad, having been tagged by Forbes as one of the nineteen fastest growing cities, is currently witnessing a gigantic rate of development of infrastructure in terms of transport systems, educational institutes, commercial and office spaces, and all other metrics of social growth. 

Why are apartments a better investment?

The rapid growth in infrastructure, in part due to the 'smart cities mission by the government of India, has led to drastic increases in property value that may make purchasing an independent house untenable for most. This does not, however, mean that purchasing a house is now unaffordable and out of reach! There are several clear reasons and advantages to picking an apartment property over independent houses at this time –

●       Independent houses cost much more than apartments, as the purchase price increases with the price of the land plot, stamp duty paid to the government, clearances to be obtained from various public departments for water, sanitation, electricity, etc., raw materials, and labor costs for construction. In contrast, these costs are all managed by the builder in the case of apartments, and the buyer just has to complete the payment to move in.

●       Apartment properties include additional value by default in the form of included parking space, power backup systems, fire safety mechanisms, and the provision of utilities such as water and gas pipelines, as opposed to independent houses, in which each of the above amenities would increase the project cost.

●       Due to the high initial cost of construction and comparatively more limited demand, the rate of appreciation of capital is typically much more superior in apartments, which are much easier to rent out or eventually sell. In general, apartments tend to remain in much higher demand than independent houses.

●       Living in an apartment can be better for one's well-being by improving one's communal relations through social interactions with one's neighbors. The communal type of lifestyle is best suited for young, small families, single working professionals, and retired individuals.

●       The maintenance costs associated with cleaning, upkeep, and repair work are typically significantly higher for an independent house compared to an apartment, as most maintenance works are generally taken care of initially by the builder and later by the apartment resident welfare association (RWA), which pools together resources from all the inhabitants to lower individual costs.

In conclusion, a 2 bhk flat in Ahmedabad may be a much more attractive investment option, with superior long-term returns compared to independent housing properties.