In recent times, the demand for affordable housing has increased drastically. The high-rise premium projects are overpriced. There is no scope or marginal scope of any price hike in the future, which means that you won’t get a good return if you plan to invest in premium projects in well-developed sectors. There is a considerable risk involved in investing in these projects. Affordable Housing Projects offer you better investment options with significantly low risk as the affordable housing projects prices are going to increase in the future. Below are a few reasons that will surely help you to decide whether to invest in the affordable segment or not.
High and Speedy Appreciation
The affordable segment projects are located in the outskirts of the city, which are currently in an underdeveloped stage, because of which the properties are available at an affordable rate. The development in the main city is already there at its peak, and now the focus has been shifted to the city’s outskirts. These areas are gaining momentum, and the infrastructure is getting improved at a speedy rate. There are enormous opportunities for developers and buyers to invest in the affordable segment and earn a high return in the future.
A buyer continuously calculates the risk before making any investment, whether it’s in the real estate sector, share market, or any other kind of investment. Though there is a considerable risk involved while investing in the share market, the same is not the case with affordable housing projects. These affordable projects come with limited risk as the price of these properties is very low. One can expect good returns from these projects. In fact, you can expect a fixed monthly rental income as well.
Luxury Projects Market Saturation
The luxury premium project prices have already reached at peak, and there is no further scope left. The gap between the affordable projects and the premium luxury projects is too high because of which buyers are shifting towards the affordable segment. The renowned developers have started investing in the affordable segment as they find huge opportunities in this segment.
High Resale Value
As affordable housing projects are already available at a meager price, the resale value of the same will not be very high. People are ready to invest in resale properties because of the low budget. Increased demand in an affordable housing segment has also raised the demand for resale property.
Easy Availability of Tenants
Affordable properties are readily available for rent at very low prices and offer all the facilities that a person wants to live a good life. Most people prefer to live in affordable housing societies only. The infrastructure in this area is getting developed drastically, which attracts most of the tenants.
Investing in the property is one of the best available wealth raising options that will assure a good return. But in affordable housing property, you can maximize your profit by reselling the property at a higher price. You can rent out the property as well to earn a regular flow of income.
Suppose you are planning to invest in a property with high returns but don’t want to take the high risk because of the fluctuations in the real estate market. In that case, affordable housing society is the best investment option to get the best possible income.