While
scouting for a project, I happen to meet an old friend of mine, who is also in
the property business. He suggested me a project and said, “I will get a first
mover advantage in the project.” Till date, I had heard the term first mover
advantage was only applicable for developers. But from the buyer’s point of
view, the first mover advantage in a project can have a specific meaning. A
buyer who can buy at the initial stages of construction has also got the first
mover advantage in terms of investment and returns.
If
one invests at low ticket size, chances are that returns would be higher. Often
it is observed that projects at its commencement offers properties at
discounted rate. When a project is announced in a region, the rate offered by
the development firm is based on the larger perception of investors in the
region. This in fact benefits genuine home buyers, who are always on a lookout
for an affordable option or a property at a discount.
To
up the sales in a particular project, investors and the company then sell the
first phase of properties at inaugural rates.
A number of projects are often announced with inaugural prices.
Once
the project starts, the inaugural rates then are revised to a market linked
rate. If you are an early investor, it is important to gauge and measure the
viability of a project and also site out a region which offers projects that
are viable and promise healthy returns.
Within
Gurgaon, a number of new sectors along the National Highway 8 and near the IMTManesar region promise such healthy returns. Popularly called as New Gurgaon,
the average rate of projects in the region being low provides a window of
opportunity in terms of healthy returns.