Introduction
Pros and cons of buying home in city centre vs on outskirts
Prime locations come with soaring property prices and smaller houses, while peripheral areas offer affordable and spacious homes. The trade-off usually involves grappling with the challenges of a daily commute. Then how does one weigh the pros and cons of both? We tell you.
Before one begins the search for your home, some of the primary things one should have clarity on are as follows:
Infrastructure, amenities, and services: Locations with essential amenities such as schools, hospitals, and grocery stores should be considered. Having these facilities at a short distance can enhance convenience and ease daily living. Overall infrastructure including the quality of roads, availability of parks and recreational spaces should also be looked at;
Social and community factors: Proximity to family and friends is important as it can provide a strong support system and contribute to a sense of
community, this also helps during emergencies;
Proximity to public transportation: Even if you own a personal vehicle, it’s always good to live closer to existing or upcoming transport infrastructure, they not only provide quick transport but are also affordable;
Neighbourhood and community: Buy a house at a location that aligns with your lifestyle and preferences;
Future growth and development: Look into local government plans, zoning regulations and any ongoing proposed infrastructure projects that may impact property values and quality of life.
PROS OF A SMALL HOUSE AT A PRIME LOCATION
“Prime locations have better physical and social infrastructure. Connectivity to different parts of the city is also better, thanks to the availability of different transport systems. These aspects make prime locations convenient compared to peripheral areas,” says Gorakh Jhunjhunwala, MD, Meraqi Advisors Pvt. Ltd.
- “Prime locations tend to hold their value well and have a higher potential for property appreciation. Buying a small house in a sought-after area can be a sound long-term investment.
- Also, if in future you move to a bigger home and wish to rent out this smaller house, the high demand for housing in prime locations will help find tenants quickly, thus potentially generating rental income that can contribute to overall financial strategy,” opines Ritesh Mehta, senior director (North and West) residential and developer initiatives, JLL.
CONS OF A SMALL HOUSE AT A PRIME LOCATION
- “Amenities are limited. They may not have a lavish clubhouse or children’s recreational areas, and other such amenities within the complex;
- Availability is limited and therefore, choices are restricted;
- The buying value in prime areas is high and therefore may have lesser capital value appreciation compared to emerging locations,” says Jhunjhunwala.
“Prime locations often attract significant competition from other buyers. This can make it more difficult to secure a property, especially during times when demand outweighs supply,” adds Mehta.
ADVANTAGES OF A BIG HOUSE IN PERIPHERAL AREAS
- “Buying a big house in an upcoming peripheral location can often be more affordable compared to purchasing a similar sized property at an established prime location. Upcoming areas offer more square footage and desirable features within one’s budget;
- As the area develops, property prices may rise, leading to potential financial gains in the long term;
- Upcoming locations often have development plans and infrastructure projects in the pipeline. They include new roads, parks, community centres, schools, and commercial establishments;
- In future, you can also rent out this property, thus generating a rental income or use it as your second-home destination,” explains Mehta.
DISADVANTAGES OF A BIG HOUSE IN PERIPHERAL AREAS
Jhunjhunwala mentions:
- The neighbourhood may lack a sense of community;
- Quality of roads, infrastructure, convinience, etc., of such areas are generally not at par with prime locations;
- Quality of available public transport needs upgradation;
- Safety especially during late evenings can be a concern;
- Social infrastructure is under development and so availability of educational institutions, retail options, hospitals, F&B are limited;
- One gets more space and choices inside the unit but compromises on the outside, at least for the initial years till the area develops completely;
- Sometimes, support staff availability is also a challenge at such locations.
In conclusion, a house is best bought as per one’s requirements. So, understand your and your family’s needs along with all the above points before finalising a location and your new house.