Key Considerations Before Investing in Real Estate
Avanta Business Centre MD Nakul Mathur shares expert guidance on due diligence, investment objectives, and long-term planning for smarter real estate decisions.
New Delhi, February 16, 2022 - Nakul Mathur, Managing Director of Avanta Business Centre Pvt. Ltd., shared expert insights with LiveMint on the critical factors investors must evaluate before committing capital to real estate - one of India's most significant but often misunderstood asset classes.
Treat Real Estate Like Any Major Purchase - With Research
Mathur drew an insightful parallel to everyday consumer behaviour, noting that just as buyers compare multiple mobile phone models before making a purchase, real estate investments demand an equally - if not more - rigorous evaluation process before any decision is made.
“Factors such as project development, design, location, surrounding infrastructure, disaster risk, and future growth prospects should all be carefully assessed before making a decision.”
Nakul Mathur
Managing Director, Avanta Business Centre
Key Factors Every Real Estate Investor Must Evaluate
Mathur identified six core parameters that investors should examine as part of any thorough due diligence process:
| Project Development & Design: Assess the builder's track record, construction quality, and design suitability for intended use. |
| Location: A property's address remains its most enduring value driver - proximity to business districts, transport, and amenities is paramount. |
| Surrounding Infrastructure: Roads, metro connectivity, schools, hospitals, and retail catchment areas directly influence both usability and resale value. |
| Disaster Risk: Flood zones, seismic activity, and environmental hazards must be factored into any long-term investment assessment. |
| Future Growth Prospects: Upcoming infrastructure projects, zoning changes, and economic development plans can significantly amplify long-term returns. |
Define Your Objective - and Plan for Ongoing Costs
Beyond the initial purchase decision, Mathur emphasised that investors must clearly define their objective upfront - whether acquiring property for personal use or as a rental income asset - as this determines the evaluation criteria, financing approach, and long-term management strategy entirely.
He further highlighted that real estate assets require ongoing maintenance and periodic upgrades, which involve additional capital over time. Understanding these costs in advance, rather than treating the purchase price as the only outlay, enables investors to make more informed decisions and achieve better long-term returns.
