An up and coming area is somewhere that is increasing in popularity. Hence property prices are expected to follow in suit as demand ramps up. Many investors try and sniff out an up and coming area to buy cheap, hold onto their asset, and then enjoy the rental return it brings, before going on to sell at a profit. The ideal investment.
But how can you identify an up and coming area? Interestingly these places such as in London are the neighbourhoods that were once more affordable. Lower property prices and rents pushed out people to these areas often led by more creative people, whose freelancing employment status has a less stable income with a lower budget to spend on housing.
As the community started to grow, shops and places to eat started to emerge, more people frequented the area to live and play, and before you know it the hordes come tempted by the lower property prices
before they head in an upwards direction. It is a simple supply and demand mechanism.
That is not to say that buy in an area that is cheap, it needs to have several factors for it to increase in popularity. Bear in mind that being close to the mass transit
network is a concern as people will want to have a quick commute to other parts of the city. Additionally, keep an eye out for new openings. If a new bar or café has opened then it is likely that more will make an entrance soon.
Those who are willing to invest their business in the area would have carried out a fair amount of research before taking the plunge. This provides a certain level of reassurance for your investment.
This pattern can be seen in many of Bangkok’s prominent locales.
It started with just one place opening and before too long a whole host of services and amenities have appeared so that residents have everything all in one place.
The best place to start with searching for an up and coming area is to pick somewhere close to an already popular area. As the already fashionable area grows, it will spill outwards. Restaurants and shops will venture here to take advantage of the cheaper rents, and the pattern keeps repeating.
Alternatively, choose somewhere that has been earmarked for regeneration whether that is with government funding or by infrastructure growth. Keep your finger on the pulse to identify where this will be.
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