From hotspots to smart bets: Why are homebuyers prioritising timing over location when investing in real estate?

Real estate investors are prioritizing timing over location, with early-cycle buys during COVID seeing 1.5x–2x gains, even outside prime areas, say experts

For decades, location has been the golden rule of real estate. But a growing number of investors and homebuyers are beginning to ask: What if timing is more important?

For decades, location has been the golden rule of real estate. But a growing number of investors and homebuyers are beginning to ask: What if timing is more important? (Representational Image) (AI-generated image created by ChatGPT)

Conversations across real estate forums and investor circles point to a shift in mindset. Instead of simply chasing the most sought-after addresses, today’s buyers are increasingly focused on entering the market at the right phase of the real estate cycle.

Those who bought during the downtrend or early recovery phases have often reaped the highest returns. Take 2020, for instance, buyers who entered the market amid pandemic uncertainty and low prices have seen average properties, even outside prime locations, appreciate by 1.5x to 2x in just a few years.

While location remains crucial, especially for end-users, savvy buyers are learning that timing often makes the difference between average and exceptional returns. Whether you're a first-time buyer or a seasoned investor, entering the market when prices are low and sentiment is just beginning to recover is emerging as a key strategy for long-term gains.

Buy property before the ‘noise’

One Reddit user wrote recently, “Buy during launch, before the noise, before the rush, and you’ll beat someone who buys a fancy property when it’s all done and ready.”

Real estate markets tend to move in cycles of downtrend, recovery, and uptrend. Experts say those who buy during the downtrend or early recovery phase often see the highest returns.

Arijit Sen, a financial advisor, said it depends not only on buying in the best locations, but also on making bold, well-timed decisions. “If someone bought a ₹70 lakh flat in Bengaluru in mid-2020 when everyone else was holding cash or staying in FDs. The same unit will now be priced over ₹1.5 crore or even more, depending on the location. It was just good timing,” he said.

Buying on 'future potential'

Another Redditor wrote, “My brother-in-law bought a flat in Bhiwadi for ₹55 lakh in 2015, lured by talk of a new airport. Seven years later, we sold it at a loss, just ₹38 lakh. The airport never happened. The hype faded. The timing was wrong.”

Investors who succeeded during volatile times did one thing differently: they took calculated risks. “In 2020, you had ₹2 crore in FD. If you had the courage to break it and invest in real estate or equity, today you're smiling. Those who waited are still wondering," he said.

“Find a government civil engineer and befriend them. They know which roads, flyovers, or metro lines are coming. That insight is pure gold," a user wrote.

While location will always be important, especially for end-users, buyers say timing separates average returns from outsized gains. Experts suggest a growing emphasis on market timing over location for both first-time homebuyers and investors.

Experts say investment success is often tied less to selecting high-profile areas and more to entering during the right phase of the real estate cycle, typically when prices are low and activity is just beginning to pick up.