Picture this: a lush green golf course with a tree-line at its borders, a path for walking that tries hard to imitate a nature trail, a club house with outdoor games that beckon and indoor activities that lure the less athletic. There’s more — entertainment facilities, possibly even a fine-dining restaurant. And to complete the convenience quotient, the promise of a school, hospital and shopping area as well as transportation facilities. Welcome to the concept of away-from-the-city homes.
With land availability being tight in cities, developers are moving further out and developing projects that offer a clean, peaceful and ‘green’ experience in seemingly lavish settings and at incredibly attractive per-square-foot price vis-à-vis city homes. Many of them realise that these developments are no substitute to a home in the city, as travel time can make it near impossible for anyone to live in any of these developments and still work in the city. This has prompted them to position these dwellings as weekend or getaway homes. Many promotions sell the future prospect argument — liveable in the future, weekend home now — in their sales pitch.
Given the significant appreciation witnessed in the past in city suburbs, it seems their contention might hold merit. However, a closer study reveals that their definition of the future is unlikely to be aligned with that of a prospective buyer as many of these projects are located so far out of the city that their becoming an integral part of the city may take decades. What’s more, events in the coming years may see the region gain or lose significantly. For instance, if a decision on a key infrastructure development in the area gets pushed back and it is eventually decided to relocate the infrastructure project to another suburban area, the expected capital appreciation based on such an expectation may not accrue.
There’s another risk with such projects. If developers don’t see much traction and significant price appreciation in the area post launch, they may stall or delay the execution. This can adversely affect buyers who have taken loans and are paying EMIs.
The bigger issue though is the sales pitch by some developers of remotely located townships offering walk-to-work lifestyles. It is one thing to buy a house near your office. It is another to change your career course to live in a ‘self-sufficient’ township. Remember, you can choose your house, but you can’t always decide your place of work. So unless you are self-employed and can work from virtually anywhere, buying into the walk-to-work dream may not be such a great idea. Besides, once you get in, exiting such a property can be tough because there is unlikely to be a very strong resale market for such homes, at least in the near future.
When it comes to get-away homes, unless you are 100 per cent convinced, stay away!
Formerly Editor, Outlook Business and Executive Editor, NDTV Profit, the writer is an entrepreneur with keen interest in personal finance. Mail propertyplus@thehindu.co.in
