‘Upcoming location’ is a term frequently used in property advertisements or discussions to refer to areas that are currently lesser-known, but touted as future prime real estate markets. Typically, such locations suddenly sprout many projects and get positioned as the ‘next best place’ for property purchase because a) they are newly-discovered and therefore, affordable as compared to more established locations; and b) they carry the promise of faster value appreciation.
So whether you are buying property for personal use or investment in a high-potential area, here is a ready checklist for you to follow:
1. Am I in the right zone?: Often, upcoming locations are situated on the outskirts of cities and may either be under a village panchayat or a city municipal corporation. The town and country planning department often revises the Master Plan to define regions into various classes such as industrial, residential, green zone, or area for social infrastructure. Therefore, it is imperative to ensure that the location of the project is in the permitted category, i.e. that a residential project should be constructed in a zone earmarked for residential use only. Construction in any other zone, until and unless converted for specific use, makes it illegal.
2. What about public utilities?: The next important step is to enquire whether public facilities such as sewage, drinking water supply and electricity connection will be made available to the project. In larger projects, developers are required to build electric sub-stations, while in other cases, electricity lines have to be drawn from sub-stations. This, along with the No Objection Certificate from the state electricity board, necessitates a great deal of expenditure on the part of the developer. Both can be causes for delays in the delivery of the project. However, if these services are already available to nearby projects, it becomes easier for the developer to attain these services after project completion.
3. Where do the roads lead?: While the presence of approach roads, main roads and state and national highways is essential, one should also factor in the distance of the location from the railway station, airport and bus terminals. One can search online or enquire from locals about the upcoming infrastructure projects such as proposed Metro stations, flyovers, etc. These can be a useful indicator of the accessibility and convenience of the project, and the appreciation potential.
4. Essential services: Education, health and entertainment are three essential