Underdeveloped Regions: A Smart Investor’s Goldmine

Investment is like a long journey where you need to invest your time, patience, and money to get returns on your hard-earned assets. However, many people don’t fully understand the basics of investing, which can lead them to make poor choices. In order to make a good investment, there are four important things to focus on:

       1.  Market Research
       2.  Patience
       3.  A Good Investment Advisor
       4.  Smart Decision Making

If you lack any of these, you risk falling into an investment trap, where your time and money end up wasted. But by properly planning your investment with a trusted advisor and investing the time to research the market, you can protect yourself from bad decisions.

Where Should You Invest?

The goal of any investor is to make a profit. To do this, you need to find undervalued assets and sell them when they reach their highest value. But in India, many people are scared to invest in regions or projects that are underdeveloped, fearing that they won’t grow or appreciate. However, this fear can hold you back from real opportunities.

The problem with investing in already-developed areas is that their value has often already reached its peak. Once an area or asset becomes fully developed, it either freezes in value or may even lose value over time due to market fluctuations. So, where can you get higher returns?

The Smart Investment Strategy: Target Underdeveloped Regions

You should always aim to invest in underdeveloped regions. But be careful — not all underdeveloped areas will offer returns. This is where market research becomes essential. Investing in underdeveloped regions means you are targeting areas that have potential for growth and development.

As these regions develop, the value of your investment increases. But, you need to make sure you do your research and consult with an experienced investment advisor who has a good track record of success. One great example of an underdeveloped region that turned into a hotspot for investors is the Jewar Airport project near Noida, India.

The Example of Jewar Airport: How It Became a Goldmine for Investors

You’ve probably heard of Jewar Airport, which will soon be Asia’s largest airport. The airport is being built along the Yamuna Expressway in Gautam Buddha Nagar. Before the airport project was announced, the Yamuna Expressway area was considered underdeveloped.

It had no significant infrastructure or commercial developments, and many people were hesitant to invest in that region. Let’s look at how an average investor and a smart investor would approach this opportunity.

The Average Investor vs. The Smart Investor

An Average Investor:An average investor would likely avoid the Yamuna Expressway area because it seemed underdeveloped. They might assume that nothing would change there for many years, and their money would be wasted. Instead, they would invest in an already-developed area, hoping to get some returns, but the scope for growth in those areas is often limited.

A Smart Investor:A smart investor would do some market research. They would learn that the government planned to build Asia’s largest airport in the area. They would also find out that the airport would be accompanied by new metro lines, a Rapid Rail Transport System (RRTS), and other large infrastructure projects. These developments would increase the connectivity of the region, which means businesses, companies, and retail activities would follow.

The smart investor would see the potential and make an informed decision to invest, knowing that as the area developed, the value of their investment would increase significantly. And that’s exactly what happened!

The Growth of Yamuna Expressway Due to Jewar Airport

The smart investor who bought property near Yamuna Expressway, before all the major developments took place, was able to reap huge returns. As soon as the airport construction started, big companies like Patanjali, Vivo, Samsung, Tata, and Mahindra announced their plans to set up factories, IT parks, and business hubs near the airport.

This led to a massive demand for office spaces and retail shops. Because of these developments, real estate developers started launching commercial projects near Jewar Airport. Some of these projects include:

       •  WTC Noida
       •  WTC Quad
       •  Bhutani Grandthum
       •  ACE YXP
       •  Gaur Yamuna City Mall

With all these businesses and commercial activities setting up in the area, property values skyrocketed. The smart investor who had bought property early in the underdeveloped Yamuna Expressway area saw returns of 400% or more in just five years. And because the area is still growing, the value is expected to rise even further.

Meanwhile, an average investor who bought property in a developed region saw only 10-15% returns due to market fluctuations. This is because developed areas have already reached their peak potential, and there’s less room for rapid growth.

Why Underdeveloped Areas Offer Higher Returns

An underdeveloped area is typically undervalued. This means that property prices are low, but as infrastructure and businesses develop, the area will see a huge increase in value. This creates the potential for massive appreciation, which is how smart investors can make high returns.

On the other hand, in already developed areas, the value has already reached its peak. While it’s still possible to earn returns, they are usually smaller, and the growth is slow.

Key Takeaways

•  Always research before investing. Understand the future development plans of an area to identify its potential for growth.
•  Investment is a long-term journey. Good things take time, so be patient as your investments grow.
•  Consult a trusted advisor with experience to guide you through the process.
•  Investing in underdeveloped regions with growth potential will offer you better returns than developed areas.

Mistakes to Avoid in Investment:

•  Never invest without understanding the market. Always do thorough research.
•  Focus on areas that will develop in the future. Avoid investing in areas where no significant developments are planned.
•  Don’t expect quick returns. Investments take time to grow.

Conclusion

A smart investor always targets underdeveloped regions because they offer higher potential for growth. By focusing on areas with strong future development plans, you can make informed decisions and see better returns on your investments. However, make sure to do your market research, consult with a good investment advisor, and exercise patience as your investments grow.