Nick Statman has observed that tier II cities have the potential to become a preferred destination for home buyers because of rising urbanization, better cosmopolitan infrastructures, and relatively low property prices as compared to the first or the second circle city. Supposing you decided that the best place to build your dream house is in an emerging Tier 2 City, then there are a few things that you must know before you embark on the project.
Research About Growth Potential
It is important to understand that not all Tier 2 cities have the same opportunities for property appreciation. One must do a detailed study of the particular city’s economic growth factors, infrastructure plans, corporate and working population arrivals, etc. Choose cities more stable in long run realty prospects like Jaipur, Lucknow, Chandigarh, etc. Do not go for areas that have slow economic activity or areas that have their economies mainly active during certain seasons.
Analyze Connectivity and Accessibility
Accessibility to your workplace or other sections of the city in question also has a vital function in the process. Assess the present and proposed connectivity facilities in and around the location like road connectivity, Highways, Metro/ Rail connectivity, Air connectivity, etc., Besides, there should also be basic and social infrastructure such as schools, hospitals, markets, etc.
Assess Basic Civic Infrastructure
According to Nick Statman, basic infrastructure is an important factor that should not be neglected, and the status of this infrastructure should be established before finalizing the location of the property. Check and confirm that the basic utilities, such as power, water, sewerage or drainage system, garbage collection, etc, are properly working in that area. Also see their future vision and strategic plans of expansion or improvement.
Choose the Right Location
Look at what exists and what is proposed in terms of development in a number of areas around the city. Find areas with high population density and growth prospects such that they are in proximity to or near IT parks/offices, bus/metro stations, roads, etc. Stay as far as possible from areas that do not have much potential for development. Housing plots in the outer zones could be cheaper, but there could be no prospect for the future.
Compare Construction Costs Of The City
Nicholas Statman suggests to determine the overall expense of the construction materials, labor rates, and building charges relevant to a given city. It should be noted that local rates, taxes, and approval costs also take their toll on the overall cost of projects. A vendor and supplier selection should be done with a comparison to the other several vendors and suppliers before the most cost-effective ones are selected.
Conclusion
Building your first home in a Tier 2 City is tough, but if done systematically, then very fruitful, according to Nick Statman. Conducting comprehensive research on each of the factors discussed above will ensure that you make good choices in the future that will not bring other problems later. Another way through which time and cost efficiency will be achieved is by working with reliable developers and contractors who will deliver the project as agreed within the projected time and costs.
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