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Tata Capital > Blog > Loan for Home > Is Property Investment on the Outskirts of a City the Right Decision?

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Is Property Investment on the Outskirts of a City the Right Decision?

Is Property Investment on the Outskirts of a City the Right Decision?

The rate at which housing projects are popping up in urban areas is not a hush information. However, the outskirts of a city are a different story altogether. Although they are not prime real estate currently, properties on the outskirts of cities will acquire higher value with time due to the nature of explorative curve. So, should you consider such properties for investment?


  • Less Pollution
    The outskirts of a city will not be as polluted as the central areas will be. With 7 spots on the list of the 10 most polluted cities in the world occupied by Indian cities like Delhi , it might be a good decision to invest in the outskirts right now as people may begin moving outwards soon due to falling air quality.
  • Decreased Prices
    Since properties on the outskirts are not as much in demand, they are usually a lot cheaper than the ones in the city. Thus, you can invest in a new property instead of a resale one as well, and you will have smaller home loans to pay back as well.
  • More Outdoor Fun
    If you are not constrained by roads and buildings, you can enjoy nature more fully and not worry about your cricket ball hitting someone's car. Outskirts properties tend to less densely populated, so there is more room for outdoor activities.
  • Safety
    Because of the low population, most outskirts areas are safer than places inside the city. This means that children can play outside the house without having to be accompanied by a parent all the time, and there is not as much risk of things being stolen from your house.
  • Community
    Since there are fewer housing projects in the outskirts of a city, the sparse population can help in developing more of a community feeling as people see the same few faces every day. This may be an attraction for elderly people especially, who may retire to the outskirts of cities.

Additional Read: Want to Own a Home? Check Out How to Apply for Home Loan


  • Inconvenience
    Finding places to shop, entertainment centres, malls, etc. is a lot harder if you are not living in a city's interior. This might deter younger people from purchasing homes on the outskirts.
  • Connectivity
    As an investor, connectivity is not an issue you can solve. If there are no major cities that connect to the outskirts of that city, then the property may be too inconvenient to live in if one needs to travel. Most metro lines do not extend to the edges of cities either.
  • Less Attraction
    With any outskirts property, there is always the issue of attracting people to buy it. Most people still prefer to live inside cities, although that might change in the future.

Overall, the location of the property matters the most. If the outskirts area is in the lap of nature or is connected to other satellite cities, it may be more attractive to potential buyers. Investing in a property on the outskirts of a city will also be the most beneficial if done right now, as prices may rise in the future.

Additional Read: Top Things to Consider Before Buying a Farmhouse

With a Tata Capital housing loan, any property is within your grasp. We offer flexible repayment options and home loan eligibility criteria, as well as home loan interest rates as low as 9.25%.

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