Buying a property is one of life’s most exciting yet overwhelming decisions. The first thing to consider while buying a property is if you want to buy a commercial or a residential property. Once you make up your mind, the detailed research and hunt begin! Also, one has to go through a tiring process of negotiations with brokers along with other relevant authorities. However, your reward awaits you at the end of all the processes and documentation – Your dream property! A place to call home or an addition to your investment portfolio.
This guide aims to assist you in determining the most suitable property type based on your preferences and lifestyle choices. It will also guide in recognising the various property types available in India.
Where Should You Buy a Property – Peripheral Area or City Centre?
Buying a property in a real estate market saturated with high-end land prices leaves a tiny scope of earning hefty returns. Also, finding buyers is usually challenging in a market with high prices.
On the other hand, the land rates in the periphery are more competitive and can be 30-40% lower than the main city prices, making them more attractive. The land rates start to witness parallel growth
only when the social, civic and physical infrastructure’s expansion sets in that particular place.
A good example would be the Yamuna Expressway’s evolution in Delhi NCR. This particular stretch has witnessed exponential development over the last decade. It is also expected to see a price appreciation as soon as the Jewar Airport becomes operational.
A comparison between the two based on multiple factors will help you determine the differences and choose the ideal location to buy a property.
| Factors | Peripheral Area | City Centre |
| Location | Located outside the city core | Located in the heart of the city |
| Accessibility | Generally less accessible | Highly accessible with good transportation links |
| Property Prices | Typically lower | Generally higher due to high demand |
| Space and Size | More spacious properties | Smaller properties with limited space |
| Amenities | Limited amenities and facilities | Abundance of amenities and facilities |
| Quietness | Generally quieter | More noise and hustle-bustle |
| Safety and Security | Generally safer and secure | Potential for higher crime rates |
| Community | Close-knit community | Diverse mix of people and cultures |
| Investment Potential | Growing potential due to | Potential for high returns on |
| Proximity to Workplaces | Longer commute to city center | Shorter commute to workplaces |
| Rental Demand | Potentially lower demand | Higher demand for rentals |
| Resale Value | Slower appreciation in value | Higher potential for value appreciation |
| Lifestyle | Relaxed and suburban lifestyle | Vibrant and urban lifestyle |
Types of Property You Can Consider Buying
Agriculture Property
This property type is primarily designated for agriculture-related activities. One thing that needs to be kept in mind is that the rules for buying agricultural land can differ state-wise. As a large section of the population is engaged in agriculture, some states also keep restrictions. Some states even restrict people outside the state from purchasing agricultural land. However, regarding the best cities to purchase agricultural land in India, here are a few names you should consider. Counting in the agricultural aspect, all of these have tremendous potential.
- Fatehgarh Sahib, Punjab
- Belgaum, Karnataka
- Madurai, Tamil Nadu
- West Kameng, Arunachal Pradesh
- Rewari, Haryana
- Kota, Rajasthan
- Latur, Maharashtra
- Namakkal, Tamil Nadu
- Udupi, Karnataka
Residential Property
The residential plots are primarily meant for home construction. The buyer must seek necessary approvals from the authorities if the land was previously used for agricultural purposes and changed to residential ownership. If you are considering buying residential property, consider cities like Delhi, Mumbai, Chennai, Hyderabad, Pune, Ahmedabad, Surat and Kochi.
You can consider buying different residential properties in India depending on your requirements. These are as follows:
- Independent Builder floors: An independent builder floor is a residential unit located within a standalone building and is one of India’s most common residential property types. It typically occupies a single floor in a low-rise structure, usually two or three floors. The builder is the owner of the entire structure. It’s important to note that each floor serves as a separate and individual residential unit.
- Multi-storey Apartments: As the name suggests, these are divided into multiple living units and can easily accommodate multiple families. The apartments are available within gated societies offering numerous amenities and conveniences.
- Villas or Bungalows: The large independent homes have their own gardens, pools, and other amenities. Villas are for individuals and families who prefer an expansive private space with added luxury amenities. They do not have a shared wall with other houses.
- Penthouse Suites: The suites are usually on the top most-level in multi-storey buildings with world-class luxury amenities, including a private terrace and swimming pool. A penthouse is a duplex with two interconnected floors.
- Studio and Service Apartments: These apartments are designed for people who travel frequently or live alone. These units feature basic amenities needed in a home.
- Senior Living Apartments: Tailored exclusively for senior citizens, akin to a retirement community, these apartments are equipped with various amenities such as a swimming pool, fitness studio, yoga and meditation centre and clubhouse.
Commercial Property
Commercial areas are reserved for constructing offices, shops, and other trade-related infrastructure. These types of plots generally carry higher government fees and taxes. Also, such properties are developed through shared ownership, and a group of investors usually pool their resources for building a plot.
What are the Documents Required before Buying a Property?
After finalising the property, the required documents must be checked properly to avoid any conflicts later in future. It is an essential part of purchasing land in India. These are as follows:
- Title Deed
- NA Order
- Encumbrance Certificate
- Release Certificate
- Receipts of Property Tax
- FSI of the Plot
Different Land Zones
The costs of buying and selling a property can vary depending on the area. Property prices in urban areas are on the higher end as compared to rural areas. Plus, depending upon the property’s zone, certain limitations or freedom about using the land may exist. Here’s a basic snapshot of different zones that will help you make an informed decision about your purchase.
| Zones | Description |
| Red Zone | These lands are meant for specific purposes like schools, hospitals, places of worship or similar social infrastructure. It is important to note that these lands cannot be developed as high rises. Thus, these are also called semi-developmental lands. |
| Green Zone | This land is notified for open and green spaces. These types of lands are used for agricultural and horticultural purposes and also for setting up plant nurseries. |
| Yellow Zone | The yellow zone land is classified majorly for mixed-use development, which is commercial and residential development. If the land is marked as a light yellow zone, it is used for residential purposes. However, if it is dark yellow, it can be used for commercial developmental purposes. |
| Blue Zone | The Blue Zone land depicts the commercial and retail spaces on a map. However, a darker shade of blue indicates retail and hospitality spaces. The light blue represents areas for the development of office and business centres. |
| Grey Zone | A grey zone is designated for setting up heavy industries and manufacturing facilities. |
| Purple Zone | Purple majorly represents factory establishments along with general industries. A darker shade of purple is reserved for technology-oriented industries. |
Wrapping Up
Regarding real estate, there is no one size fits all approach. These factors are inclusive of the local demand, zoning restrictions, to rental return. And while making a purchase, it is important to do proper evaluation and research of your property at every level. It will help you make the right decision.
What type of property is best to buy?
ommercial property is an ideal buy if you are looking for higher cash flows. Otherwise, if your objective is to live in a space for a longer period of time, then you should go for residential property.
What are the important pointers to check before buying a property?
Keep a check on the following before buying a property. This includes –
- Right documentation
- Construction approvals
- Verify everything in person
- Sort all the maintenance issues
Is it safe to purchase a house that is a decade old or more?
Usually, it is advisable to buy a house which is not more than five years old.
