It is Risky to Buy Property in Religious Localities?

Uncertain price appreciation:

CEO, residential services, Jones Lang LaSalle India, Om Ahuja, stated that property investment in religious localities may lead to uncertain appreciation. He further said that "While purchasing property in a religious place, you must also factor in the noise and crowd which can exert downward pressure on potential rental income and resale value," reports Economic Times.

Moreover, Investment in properties close to religious localities may not bring much appreciation as well as good return unlike properties in metro cities unless the property carries other supporting factors. For example, Madurai, the temple city of Tamil Nadu holds healthy growth in commercial real estate, besides the religious sentiments associates with the city. The significant growth driver of the city is the demand for housing units, not the religious factor as the city is witnessing good movement in IT/ITeS section.

A realty service provider portal, Mumbaipropertyexchange.com’s CEO Sandeep Sadh stated that properties in religious localities would fetch appreciation below 10 percent yearly, whereas the same size property could fetch appreciation between 15-20 percent yearly in metro cities.