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Investing in Real Estate? Here’s How to Minimise Risk

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The thumb rule of investment in new residential real estate is to know the builder and know the locality. Someone with a thorough knowledge of both would benefit from the investment in the long run. Not much can be done in the short run now. Gone are those days when investment in properties meant guaranteed profits. The new property market is more rational and more customers oriented. The days of the builders are done. The hold on Hiranandani projects in Maharashtra and the SEBI verdict against the DLF has clearly indicated that no one is out of reach. Therefore builders have no choice but to give the end users what they want.


That being said, the end users also have to be cautious. Checks and balances may be in place but it is a well known fact that it is the end user who suffers the most in case of property disputes (Campa Cola colony case rings any bells?). Therefore one should be as careful as possible and do some research work before investing.

Investment in Gurgaon

Gurgaon has been a hard hit territory where residential properties are concerned. Over the past few years, not only have new project launches have reduced to a trickle, the existing projects from years gone by are yet to clear their inventories. So how good can the new residential projects in Gurgaon be from an investment point of view?

In the month of February, there have been only two major launches. The first one has been a luxury apartment launch by Tata Housing and three projects have been launched by ILD Group. This is a builder firm that has almost 5 million square feet of residential and commercial property development to its credit. It has marked its presence in Gurgaon and is a well known name in the NCR. How feasible can an ILD offer be?

Investment Assessment

The first thing to consider is what property is being offered where? ILD Grandand ILD Grand Centra are being offered in Sector 37 and ILD Arete is under construction in Sector 33. Ever since the announcement of the development of a Delhi Mumbai Industrial Corridor and the KMP Expressway, both Sectors 33 and 37 have become much sought after residential property destinations. The cost of development is already high here. Therefore if a builder already has assets in place that means that a lot of forethought has gone into the project launches. A deeper scrutiny reveals that the vicinity of Sector 33 to Sohna and Sector 37 to Manesar along with other infrastructure development that is going on, both these sectors are bound to become crucial residential hubs in the future.

These areas may be new but already boast of established amenities like schools, hospitals and road infrastructure. The projects offer large units with areas ranging from 1200 square feet to 4500 square feet in all three projects combined (ILD Grand, ILD Grand Centra and ILD Arete). The accommodation options also vary from 2, 3 and 4 BHK to penthouses and duplexes. With this list of offerings, the prices of accommodations start close to Rs. 70 lacs and do not go over Rs. 2 crores.

In Conclusion

A close scrutiny of similar offerings in and out of Gurgaon reveals that investing in this project is a viable option.

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