There are few aspects that actually affect the property and it’s needless to say, real estate sector is undeniably on the rise. And the factors followed by interest rates, location, demographics and the state of the economy, which influence the price of the property in the country. The accurate approach in regard to the right time for purchases of property, price escalations, recessions in the real market and other indicators, aid in making valuable purchase decision.
So the factors which drive real estate price in the subcontinent:-
Location: Properties, building and real estate located in commercial & market areas, hold higher value rather than the residential areas. And it is common to find a broker quoting a lucrative price for buildings in well developed and approval colonies as compare to the lesser developed and fresh coming areas. Likewise, the buildings which are constructed on freehold land tend to command a high valuation against those on leasehold plots.
Amenities: Its very obvious that project with modern features and amenities will cost much than those which fails to offer proper that fail to provide electrical connections, telephone lines, water, sewage facilities and even other important features like swimming pool, kid’s playing area, gym,clubhouse, general store, valuation of property is clearly based on the necessities available in the project.
Infrastructure: Naturally, infrastructure development is one of the most important elements that affect the price of any real estate property. Things like road development, airport, flyovers, malls, hospital, bus terminals, etc. actually uplift the price of the property. Out of the above, connectivity is one of the essential factors that compel each one to invest the money and likewise offer comfortable travelling. Not only this, but many more destinations plays an important role while buying the property.
Commercial real estate: As you know places like Gurgaon, Pune, Hydrabad, Mumbai, Andheri Borivili in Mumbai are the prominent example of commercial development which have obviously affected the valuation of the property. Additionally, development of IT offices, malls, special zone near residential area help in cutting down the time and time devoted in commuting to the workplace and this eventually increase the price of the property.
Disposable income and availability of land: Properties that are near to IT hubs than those which are close to an agricultural area, the valuation of the property is directly proportion to the quantum of disposable income in the hands of the purchaser or the majority of the population in that area. Moreover, the availability of land where bountiful space is available for residential use or expansion of real estate, the graph reflecting the valuation of property show a downfall than in the area where land is comparatively insufficient.
Demand & supply: Demand for real estate in a specific area is inversely proportional to its supply, as the supply or availability of real estate cut down, the valuation of the property increases. In fact, the change in population also raises the level of demand and due to the popularity of the location in terms of people want to be a part of it boost up the price.
Affordability: Basically, it is a cost that is acquired by the owner in the process of exploring or retaining a property, moreover, in layman’s term, it is the term which establishes a relationship b/w interest rate, property prices and wages. And if these three elements reach to their maximum level in a particular area, then residents look towards a better lifestyle.
Structure: The valuation of property also depends on the specifications of materials used, layout, design, size, life cycle of the building, so the quality of material used during the construction, in fact roof covering, height of the building , also affect the price of particular property.
Customization: The actual cost of real estate becomes higher, even builder undertake customization of residential space on the lines of the purchaser’s requirement. For an example, some investors may want separate verandah, upgraded kitchen, quality paint and flooring and this lead to an escalation in the total price and before making any real estate purchase decision, investors should analysis and get the perfect place that interest them. So a little homework will aid the buyer to get the right property and more lucrative return.
