Where to buy your dream home at Metro city or Other Cities?

 

Another common dilemma faced by real estate investors and home buyers involves whether to invest in a metro city or smaller cities. Again, the answer largely depends upon the purpose of purchase. Let’s delve a deeper into the advantages and disadvantages of each of them.

Buying a property in a metro city is understandably more expensive than buying one in a tier II or III city. However, location is a key criterion when it comes to a real estate purchase. This is where metro cities score over smaller cities. For end use, one should own a home in a location which enjoys self-sufficient physical and social infrastructure.

Moreover, metro cities prove to be a better bet in case you are planning to settle their due to a plethora of job opportunities they offer. You should think of another city only if it is your second investment.

Appreciation in metro cities might not be too high unless you go for the suburbs. In metros, capital appreciation, open spaces and new projects would only be available if you move towards the outskirts of the city. However, in this case you might have to compromise a little on connectivity and infrastructure.

On the other hand, you can get a property in central parts of a smaller city at the same price as that of a metro suburb. Additionally, there is higher scope of capital appreciation in these cities.

Of late, numerous IT companies and MNCs are targeting smaller cities for expansion, which bodes well for the residential real estate market. Some other factors fuelling the growth of smaller cities include:

Increased economic activity: Growth in sectors such as IT and IT-enabled services, manufacturing, financial services and consumer goods have resulted in more housing demand.

Infrastructure growth: Physical infrastructure in tier-II and III cities is steadily improving, more so after the launch of ambitious projects by the Centre such as AMRUT and Smart Cities. This has favoured the real estate quotient of these cities.

Lower real estate costs: Land, labour and other operating costs in smaller cities are relatively lower than those in metros. Hence, the overall burden of these costs passed to home buyers is also low.

Cheaper cost of living and better quality of life: Due to the better quality of life – open green spaces, better climate, less pollution, smaller cities are attracting non-resident Indians and retirees alike.