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.
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