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This is a question most home buyers struggle with. Where do I get the maximum appreciation within the Trivandrum city. Do I buy an apartment or a plot of land? We have another article on that subject.
The other question is do you go for something near Technopark or within the city? Thus its very evident that the location of the property is not such an easy choice. We present a few tips here to make your decision simpler.
1. Real estate development in Kazhakootam & Rental income - Both sides of the Kazhakoottam-Chackai bypass are infested with high rises. However off late there seems to an over supply and lesser demand for projects in this area. Hence you could get good bargains from builders on a new launch or yet to be sold property. The attractive proposition is the rent that one could command in excess of Rs.10,000 for a 2 BHK apartment or in excess of Rs.15000 for a 3BHK apartment.
2. Within the city - new growth areas - Vattiyoorkavu and PTP Nagar are 2 upcoming areas worth consideration within Trivandrum city. The governments development project at Vattiyoorkavu, coupled with the Greenfield Indoor Stadium at Vattiyoorkavu that is proposed to be constructed in the available space in the Central Polytechnic Campus, Vattiyoorkavu, Trivandrum is sure to escalate prices in the area after 2013. The Vattiyoorkavu sports complex is set to have the following facilities -Indoor Seating Capacity – 5000, Indoor arena for Badminton, Basketball, Volleyball, Table Tennis & Lawn Tennis , Olympic size Aquatic facilities, Parking space for 400 cars. For more read about it here: http://www.35thnationalgames.in/index.php/sports-infrastructures/new-infrastructure/224?start=1. These areas are also seeing budget apartments under Rs.30 Lakhs which makes it quite affordable for a majority of the populace.
s 3. Vazhuthacaud - Vellayambalam - Sasthamangalam - This is an area within the city which has seen rapid increase in real estate rates. Partially due to the completion of road works, and lots of new offices coming in. Hence a combination of residential cum commercial complexes can be seen springing up here. Rental incomes here could touch Rs.20,000 for a 3BHK which makes it quite attractive for those who are buying on EMIs. The current property rates are around 4500 to 5500 per sq. ft. , however we feel this area has not touched the inflection point yet and rates could increase to 7000 or 8000 per sq. ft in the next 4 to 5 years.
4. MG Road - The most prime residential area in the city also features some new launches by builders like Power Link. With new towers coming up in the Ayurveda college region, if you can afford, MG road will be worth the bet in the years to come. The rentals here touch up to Rs.25,000 a month.
5. Mono rail connected areas- The debate on the mass rapid transport system lingers on with options like Mono Rail, Metro, LRTS etc. being considered. In Phase 1 - The 19 stations for the proposed mono rail would be located at Technocity Extension, Technocity, Pallipuram, Thamarakulam, Kaniyapuram, RVTI Junction, Kazhakootam, Karyavattom, Pangaparra Guru Mandiram, Pangaparra C H Memorial School, Sreekaryam, Pongumoodu, Ulloor, Kesavadasapuram, Pattom, Plamoodu, Palyaam, Statue and Thampanoor. Phase I will culminate in front of the Sreekumar Theatre. In Phase 2 - 16 stations. Killippalam, Karamana, Kaimanam, Pappanamcode, Karakkamandapam, Vellayani Junction, Pravachambalam, Pallichal, Paroorkuzhi, Mudavoorpara, Balaramapuram, Vazhimukku, Pathamkallu, Moonukallinmoodu, Aalummoodu and Neyyattinkara.
Our recommendation is that if you want to see appreciation in the next 4 to 5 years for your property go for locations in phase 1 of this project. If you want to go for a budget plot or apartment and go for appreciation in 10 to 12 years look at areas in Phase 2 of this project. Going by experience in other Tier 1 and 2 cities, a mass rapid system shoots up property prices by 40 to 50% once the project is in working condition.
The final choice of location of your property could be made keeping in mind these developments. However you can be rest assured that on an average you would get a return on 18% odd on investments made in real estate in Trivandrum given the present trends. With the outlook looking upbeat for the next decade the actual returns could be in excess of 20 to 30%. So any time is a good time to invest in real estate in the city.
