How much importance do home seekers attach, to finding a property that has good educational institutes in its vicinity? We look at the demand and the benefits that such properties offer
With cities become increasingly congested, commuting over long distances, is no longer a pleasant experience. This is especially true, vis-à-vis travelling to and from work and the children’s schools. Home seekers, today, are paying considerable attention to having a reputed school close to one’s house, says Rohit Gera, MD, Gera Developments. “Most home seekers in this target group are young parents and come from nuclear families. Fortunately, good schools have started mushrooming all over the cities and home buyers are not starved for choice,” adds Gera.
How schools influence property demand
Although many schools now offer bus services, safety concerns remain. “For this reason, most parents, especially those who are working, prefer to have the option to drop and pick up their children, without having to worry about their safety,” explains Amit Ruparel, managing director, Ruparel Realty. As more schools encourage extra-curricular activities like sports, music, etc., having a school close to the home, makes it easier for the parents as well as the children, to participate in these activities.
Many schools also prefer students, who reside within a certain radius from the school. All these factors tend to influence the home buying or renting process of families. “Considering that admission to a school is usually a long-term decision, home buyers tend to prefer strategically-located residential projects that have multiple schools close by,” says Ramesh Ranganathan, business head, north and west, Mahindra Lifespace Developers Ltd.
Returns on property investment, in places that are close to educational facilities
The top facilities that customers consider, while looking for a home include infrastructure, amenities within the housing complex, specifications of the apartment and distance of schools from the project site. Developers too highlight amenities like proximity to public transport and schools, in their marketing campaigns. If well conveyed, these can boost project sales. “Having a good school in the locality, will fetch a premium on the property and give attractive returns, as well as rental options,” adds Ruparel.
Proximity to schools and other educational institutions, is especially important in metropolitan cities like Mumbai, Bengaluru, Pune and Chennai, where every minute saved counts. Moreover, a centrally located and easily accessible residence, can go a long way in improving the residents’ quality of life. According to industry experts and agents, the occupancy levels in homes/ apartments that are closer to schools/ educational institutions, are generally higher. While the rental yield on properties, typically ranges between two and three per cent in metropolitan cities, one can expect a marginally higher yield for properties closer to schools, they point out.
Buyers’ preference towards properties near educational institutions
- Schools in the vicinity of a property, are becoming a crucial factor, in the home buying decision for buyers in the age group of 30-40 years.
- Having a good school in the locality, will help the property to fetch a premium and earn attractive returns as well as rent.
- With safety of children becoming a rising concern, parents prefer having a school that is close to one’s home.