What Are the Factors That Impacts Property Prices?

Real estate has always been a profitable asset for the short term and the long term goals. Property is among those few assets, which can offer returns higher than the inflation rate. However, only a few manage to invest in real estate, out of which only a handful understand how the property market works and the reason behind growing prices in the property market.

Infrastructure Development

Infrastructure development plays an important role in the value of the property. Any type of infrastructure development such as connectivity, transport, road, or transit hub, etc. acts as a stimulator, as these is supposed to attract more population and in turn, more demand. For example, the price of 3 BHK Flats for Sale in Bidhannagar, Durgapur will get increased owning to infrastructure development.

Upcoming or Available Facilities

Would you prefer a property without a parking space? Probably no. Now, what about a similar property with a parking space? Yes! This additional facility can create a price difference of 10%-15%, especially in big cities where parking in residential colonies may be difficult. Chances for property owners to get a better rate than the usual market rates are very high who continue to improve their property. The improvement could be anything like a basement garage or a mini terrace garden or a kitchen lawn. Apart from this, the architectural design, upkeep, and interiors of the property, also play a crucial role in price appreciation.

Local Development

For a property market to flourish, it is very important that the local area and the social infrastructure support growth. A property in a gated residential colony with a residents’ welfare association (RWA) will be favored more compared to a property located in a normal colony. Furthermore, amenities such as green cover, security surveillance, facilities in the immediate neighborhood, and the type of gentry residing in the area, can also contribute to the rise of property value. For example house for sale in serampore are equipped with all modern amenities to live a true modern life.

Government Policy

One major policy that directly impacts real estate appreciation is lending rates. The cheaper cost of borrowing brings more buyers to the market, creating more demand and appreciation. Similarly, reductions in stamp duty rates, circle rates, GST rates, income tax benefits, etc., directly impact demand and prompt more people to look for flat for sale in Barrackpore and elsewhere.

Economic Condition

A country’s economic condition also plays an important role in property appreciation. If the inflation rate is high, the value of money will reduce i.e. a builder would need to spend more on input items like construction materials, labor, permits, etc. However, this does not mean that the property prices will increase, irrespective of the growth drivers. For prices to rise, properties have to meet several requirements, including accessibility, infrastructural requirement, and availability of residential properties. Apart from this, the overall economic indicators such as GDP, purchasing power parity, and unemployment rate, also contribute to price growth in the long run.