Investing in real estate projects is one of the best things that you can do in 2024. It does not matter whether you are buying a property for actually living or just as an asset, it will ultimately give you good returns.

But do you know which property in Gujarat is best for your needs? Or whether investing in underdeveloped areas is a good idea or not. See, everything has its pros and cons and so as buying a property in the underdeveloped areas of Gujarat. But taking care of the same can help you avoid issues and make the most out of your investment. 

Now let’s talk about what investment in real estate projects is important and why areas matter. See, if you are buying a residential property for sale in Gujarat’s premium locations, you have to pay a handsome amount of money.

On the other hand, investing in underdeveloped areas is far more affordable. Moreover, as the area is under development, the prices of the property will multiply in the upcoming years, giving you double returns. 

But there are some cons as well. So, that being said, let’s discuss the pros and cons of such an investment.

High Returns

One of the most prominent benefits of such investment is high returns. As previously stated, you can purchase a property in Gujarat if it is located in an underdeveloped area at a cheaper price. But, real estate developments happen quickly and once the area is developed, you can sell the property at a high price because the property's value will be 2x.

Even if you are thinking of living in that apartment, go for it. Stay there for 3 to 4 years and then sell that property. With that money, you can find an apartment in a good location.

Low Competition

Low competition means that there will be very few like you who are thinking of buying a property in such areas. As the areas are underdevelopment and have limited amenities, you can take advantage of this situation and seize the deal. 

Most people go for locations that have high connectivity with the rest of the city, but you stick with your choice. You would be surprised to know that many real estate companies have invested in lands for their projects following the same path. Less competition means more ownership and options to you.

Political and Regulatory Risk

Underdeveloped areas come with political and regulatory risks. So, what are they? It means that such areas are easily affected by political turmoil, investment, and changes in regulatory frameworks. 

Suppose you bought a property and suddenly the government brings out a notice of changes in rules in legal verification, staying, or pricing. In such situations, you won’t be able to do anything but just follow the new laws or leave the property. Yes, there is scope to adapt to these changes but not all of us are ready to do that.

Infrastructure Challenges

Now, this is the most disturbing thing about buying a property in an underdeveloped area. As the area is not fully developed yet, you might face problems regarding transportation, network issues, lack of amenities, etc. 

However, you can manage all these things if you have a vehicle. Moreover, If you are staying in such areas, you need to plan everything on weekends, starting from food, medicines, and getting wifi for the network which is a lot of tasks. 

On the other hand, developed areas are far more accessible and have all the living solutions available.

Security Concerns

A property in Gujarat situated in a remote area is prone to legal conflicts like riots. Apart from that, it is an ideal place for people who are into illegal whereabouts. Yes, not all areas are indeed affected by such people but as it is underdevelopment, lack of supervision of police or legal help gives rise to such problems.

Therefore, living there alone is a bit risky. If you are getting a property there, try to communicate this point with the owner and ask them what kind of precautions they take to avoid such scenarios and if not why.

Wrapping Up

Investment in real estate properties is a very good thing when done in the right way. You don’t have to panic or stay suspicious all the time to get a good property. Just get a lawyer or a good property consultant who will help you throughout the process.

Yes, these things take time, but it is far better to keep things slow than jumping to conclusions and regretting them later. Be confident and get every piece of information about the property or the area and you will be good to go. Remember, responsible investors are the ones who can change the scenario.