In the long run, an investor understands that no investment is better than buying an investment property. But before we jump to the 5 best cities to make property investments in UP, let’s take a quick look at investment property, its types, and more.
What Is An Investment Property?
An investment property can be any real estate property including flats and land which investors buy with the intention of making profit from it, either by selling it at a higher price or by renting it. Investment properties can be owned by individuals, groups, or by corporations.
People usually buy investment properties in order to make money from them. But some people buy them for other reasons. For instance, Buying an investment property is popular among people who think they have a good chance to accumulate wealth over time.
Types of Investment Properties
There are mainly three types of investment properties available for Indian investors.
1. Residential Property
Residential real estate is the most common type of property investment that investors make. Residential houses, residential lands, condominiums and apartment buildings can be purchased for high prices and rented out or sold at higher prices.
2. Commercial Property
A commercial building, warehouse, retail store, or other property rented to tenants can be classified as a commercial real estate. As a result of their larger size and better cash flow, commercial properties have higher returns than residential properties. But also the price of commercial property is relatively higher than that of residential property.
3. Mixed-Use Property
A mixed-use property combines both commercial and residential uses within one structure. A mixed-use building may include apartments above ground-floor retail stores or industrial tenants above offices. Mixed-use buildings typically provide higher returns than either commercial or residential structures alone because they can often charge more for both types of space within the same structure.
Top 5 Investment Property Locations for Buying An Investment Property
#1 Lucknow
#2 Allahabad
#3 Bareilly
#4 Kanpur
#5 Mathura
1. Lucknow –
Lucknow, the city of Nawab is one of the best places to buy investment property as the city has seen tremendous growth in the real estate sector in the last two decades. Lucknow city offers seamless connectivity throughout the state and infrastructure is also awesome. The city is located in the north-central part of India and has been known for its rich culture and heritage. Besides, Lucknow is also known for its street food like kabab, Biryani, Kulcha, and many more.
2. Allahabad –
Allahabad also known as Prayagraj is one of the most clean and environmentally friendly cities in Uttar Pradesh. Allahabad is located at the confluence of the Ganges and Yamuna rivers, in the north Indian state of Uttar Pradesh and is going to be a hub for business and industrialization in coming years. The price of property in Allahabad has risen triple times in the last 10 years, which makes it one of the areas to buy investment property.
3. Bareilly –
Bareilly has been attracting investors and developers to its real estate market for years now. The affordable prices, good governance, and rising demand for residential properties have made it a favorite among the investors.
4. Kanpur –
Kanpur is one of those few cities which offer affordable living with a low cost of living index compared to other major cities like Bangalore, Mumbai, and Delhi. Moreover, there are no taxes on property sales or transfer so it makes it an attractive option for investors who want to buy properties at reasonable prices without paying high taxes on them.
5. Mathura –
Mathura is one of the most famous places in Uttar Pradesh. It is an ancient city and is known for its religious importance. Many people visit Mathura and Vrindavan due to their religious significance. Mathura property is a good investment opportunity for investors who want to invest in a safe and growing market.
Why Buying an Investment Property Is Ideal Option for Investor
Well the main reason behind buying an investment property is that it protects you financially during your hard time. It’s 100% certain that inflation will increase the price of goods and services, which will also put you below the poverty line if your income is not that high. It will be helpful to have an investment property at that time because you will be able to get regular rent from it, reducing your burden and securing your life.
Also, as compared to stocks, investing in property is the only liquid asset which is practically risk-free, since property prices only increase over time, and you just have to wait for the right time to sell or rent it.
FAQs About Property Investment
Is property investment a good idea?
Yes, Investments in property always make sense since they provide a steady stream of income and have several tax advantages.
What type of property is best for investment?
One of the best investments one can make is to invest in rental properties, as they provide a steady cash flow every month. In addition, rental property has always performed well during times of crisis.
Is it good to invest in property in Lucknow?
Yes, there is no doubt that Lucknow’s real estate sector is seeing a surge in recent years, and it is becoming one of the hottest locations for investors to make property investments.
Which is the best place to invest in Lucknow?
Best Place to Invest in Plots in Lucknow –
- Golf city
- Nilmatha Cantt
- Gomti Nagar
- Karora
- Purvanchal expressway