5 Factors That Cause Property Prices To Grow
28 Dec 2018
Investing in real estate has long been regarded as one of the most stable and promising forms of financial investment. When you invest in the right kind of property that appreciates in value significantly, it can open up a range of financial avenues for you. However, as an investor, it is important for you to watch out for the factors that result in the value appreciation of a property.
Here are 5 factors that influences the growth of property prices:
1.Demand and supply:- One of the foremost factors that influence the value of the property is the demand for real estate in the area. As the demand goes up, the property prices in the area begin to rise. The increasing demand also attracts real estate developers, who then purchase land in the area and supply property at higher rates in keeping with the growing demand.
2.The rate of interest on home loans:- An important factor that affects the demand to supply ratio of real estate is the ease of getting a loan sanctioned. As the interest rates on property purchase loans fall, the demand for real estate increases. This results in the overall appreciation of the real estate market.
3.The location of the property:- The area where the property is located must be well-connected, easily accessible, safe and well-maintained. A scenic view, green surroundings, and proximity to landmark destinations are some other factors that result in value appreciation. Proximity to civic amenities like reputed schools, hospitals, shopping malls, employment hubs, etc. will also enable the property to appreciate at a good rate.
4.Features of the property:- The features of the property, such as the interiors, layout, size and amenities, play an important role in adding to its value. Corner homes and properties that receive ample sunlight are known to appreciate well. Vaastu-compliant homes and those that are equipped with modern and luxury amenities are typically always in demand.
5.The developer’s reputation:- The real estate developer’s reputation plays an important role in ascertaining the performance of the property, in terms of demand and value. A reputed developer with a good track record guarantees quality construction, on-time delivery and efficient and transparent processes, all of which increase the demand for the property and add to its value.