How to identify an area that will develop fast
As major cities and towns get saturated, both with people and buildings; the need to acquire properties in suburbs, city outskirts and less occupied neighborhoods becomes paramount. Real estate is such a huge type of investment that nobody wants to make mistake or buy property that have poor re-sale potentials. The key factors to be keenly considered before buying a property in a new neighborhood are as follow:
Observe demand and supply
Just as it applies to all economic goods, the ratio of demand and supply of properties in an area is a key indicator of its growth potential. Usually, keen businessmen and experienced realtors begin investing in an upcoming area early. As more astute businessmen keep looking towards that location, demand for properties will keep growing and consequently supply will follow. Areas where tenants and businesses are increasing moving out from, with the vacated apartments and shops not quickly taken up is a sure indicator that an area is not quite conducive. On the other hand, an area where many new residential and commercial building projects are quickly growing in number are strong pointers that it has potential to attract rapid development. When the space to build in an area is saturated but demand keeps on growing, rent will likely soar. For you to find high-demand, low-supply areas: you should have your eyes on locations where the rental yield is climbing. It shows that the area is desirable among renters.
proximity to Social Amenities
Check nearness to facilities and public services. Places that have hospital, Colleges or University, market, and access to major roads are quite desirable. locations that are within 5-mile radius to local shops are sure to become future hubs for homeowners. Proximity and access to important public facilities and centres are some of the top criteria that families consider before they move in to a new area. The reason isn’t far-fetched: workers want shorter commute to their workplace, market, garage, malls, event centers etc.
The average age of people living in a particular area is a vital factor in understanding the development potentials of an areas. Locations that have a high population of young people in their 20s, 30s and 40s will certainly experience rapid development in relatively short space of time. This is because majority of people living in the area are young professionals who will require and demand closeness to local retailers and transportation links. This will ultimately encourage influx of infrastructure and local business to the area. Subsequently, one-time unknown area gradually turns into a mini-city and becomes home-owners’ hub in a very short time.
Look for huge public projects underway
One of the ways to identify an area that will attract development faster than usual is to spot large public and private infrastructure that is budgeted for or due to commence. Public facilities such as hospital, motor garage, schools, banks, fmcg, companies, integrated farming systems which have high employment potential has the ability to transform a village into a mini-city in a short period. These are unbeatable indicators that an area is likely to witness a rush in housing demand as workers’ flock in for jobs opportunities. Discerning investors will invest as soon as such big project begins. The rush to such locations usually start towards the completion of the projects, by then cost of properties will have increased considerably. Note that areas with projects that have commenced are preferred as government promises or private plan can fall through.