Have you ever noticed how successful real estate investors prefer purchasing property in areas that are still undergoing developmental work? Instead of putting all their money into well-established neighbourhoods, many experienced investors buy property in upcoming residential enclaves where prices are low and investment prospects are high.
With real estate prices on an upward hike across the country, this is probably the best time to invest in property hotspots. However, if you are unfamiliar with the latest real estate trends, you may have some trouble identifying the best places to buy property in your city.
Since Zameen.com is committed to helping you find the best property that suits your budget and lifestyle, we have put together a comprehensive guide that will help you identify the emerging real estate hotspots regardless of where you are located.
However, before we delve into their key features, let’s discuss the meaning of property investment hotspots in the world of real estate.
What Are Property Hotspots?
Property hotspots are like the diamonds in the rough. These neighbourhoods are usually located in proximity to well-performing areas but their real estate prices are substantially lower than the average citywide prices. These places are usually categorised as underperforming and do not draw the same level of attention as their sought-after counterparts.
All of these factors result in these neighbourhoods becoming more affordable. So, when the popular and densely populated areas become too expensive for genuine buyers and investors, they set their sights on these up-and-coming and less crowded residential enclaves in the city, causing a positive outward ripple effect.
Once people start investing in these suburbs, the property prices also begin to increase, promising a high investment yield and a potential for values to catch up – or even surpass – the prices of comparable properties in blue-chip neighbourhoods. Real estate developers are also always on the lookout for property hotspots to establish their latest projects.
Tips to Identify Potential Real Estate Hotspots in Your City
Oftentimes, finding these property investment hotspots is easier said than done. Though if you are looking for up-and-coming real estate markets that guarantee high capital gains, here are a few tips to identify the hottest places to buy property in your city.
Infrastructural Development and Improvement
One of the biggest signs of an emerging real estate hotspot is improvements in infrastructure. The development of roads, bridges, street lights, parks, commercial areas, hospitals, and schools are the biggest game-changers for up-and-coming real estate markets. These improvements attract prospective homebuyers looking for their dream home along with drawing the attention of investors looking for low-risk and high-yielding opportunities.
Infrastructural development also plays a huge role in boosting civic amenities and creating more job opportunities. As the neighbourhood begins to improve, the value of the older properties also starts to go up. Meanwhile, many businesses also begin to expand their services to unlock a new segment of their target market.
In simpler terms, the completion of various infrastructure projects serves as growth drivers for economic progress, thus increasing the demand for real estate.
Changes in Government Policy and Planning
General policy and planning changes are another tell-tale sign of property investment hotspots. This may entail the rezoning of areas that previously housed warehouses and factories, or areas that had been occupied by slums or illegal housing societies.
As the population begins to grow and neighbourhoods become congested, many people opt to move to newer areas with better amenities and less population. These areas have the potential to become the fastest-growing real estate markets in a matter of years.
A great example of a real estate hotspot in Karachi is Scheme 33. For the longest time, it was considered a low-income area on the outskirts of the city. However, a few decades ago, developers began to show interest in the expansive residential enclave and laid the foundation of a few housing societies. Fast forward to the present day, Scheme 33 is now regarded as the most popular area to buy plots in Karachi.
In addition, almost all of the luxury apartment projects in Karachi – including the state-of-the-art complex of Burj Al-Jinnah –are being constructed on Jinnah Avenue. It is the main artery in Scheme 33 that connects the Jinnah International Airport to the Karachi-Hyderabad Motorway.
The Growing Population
This one is a no-brainer. If you are looking for the best places to invest in real estate, consider looking at the areas that are suddenly experiencing a boom in their population. When people start relocating to a new neighbourhood at a rapid pace, it is a good indicator of its growing popularity among the masses.
Emerging real estate hotspots are still developing, so they are relatively less populated than well-established neighbourhoods. However, as the interest of investors and developers in a certain locality becomes evident, more and more begin to move there.
High-Yielding Area
Those seeking the best areas to invest in real estate should look for neighbourhoods with a high-yielding property market. Ideally, emerging hotspots should experience up to 5 percent capital gains each year or so. You can contact a reliable real estate agent or get in touch with the representatives at Zameen.com to gain more insight into the property market of your respective city.
Another way to identify property investment hotspots is to look at the suburbs located within a 10-kilometre radius of the most developed localities in the city. These residential enclaves boast budget-friendly property options and show a steady price appreciation.
The supply and demand ratio of properties in an area is yet another indicator of property hotspots. Localities with more residential projects can spark the demand and result in a price appreciation, resulting in a higher rental yield.
To conclude, emerging hotspots are the hottest real estate markets in any city. These neighbourhoods are well-connected to all major areas in the city and have the potential to significantly grow over the next few years. So, if you are looking to buy your next dream home or want to invest in a rental property, consider looking at the developing or newly developed residential areas in your city.
To learn more about the real estate hotspots in different regions, please stay connected to Zameen Blog. Furthermore, you can share your queries and concerns with us by dropping an email at blog@zameen.com. Last but not least, don’t forget to visit our Facebook page to learn about the latest real estate investment opportunities near you.
