Since the starting of the real estate industry, it became frequently asked question by every prospective property owner. And almost every one of us needs to know “What are the major issue that influence property cost?”
Thus, in order to help Individuals or investors looking to buy a property Gaursons India Ltd. has one again come forward with this information so that to provide mass benefit and buyers or investor can identify localities or projects that promise high returns in the years to come. Let’s see what are the influencing factor that helps you in buying a particular property.
Demand and Supply: Well we all know the basics of economic forces of demand and supply that drive prices – high demand with low supply and more supply low demand. But it is also very important factor for real estate too.
Demographics: Demography is a critical driver of real estate demand. The demographic factors are those that describe the composition of a population like as age, gender, race and median income of a particular region.
Increased population requires more housing, shopping and places to work including both office buildings and factories and more hotels for travel and recreation. Further, these statistics are an often overlooked but are believed as the most significant factor that affects what types of properties are in demand, its location and at what price they are available. There are several ways this type of shift in demographic can affect the construction market, but from an investor’s point of view, some key questions might be different.
Interest Rates: Interest rates also put the major impact on the markets of real estate. Changes in interest rates can greatly influence the person's ability to buy a residential property of his choice. That is why the interest rates go up and down and varies according to the market demand and supply.
Location to amenities: Communities naturally require certain services and amenities to sustain them over the long term. Not only do these amenities make an area more livable, but they also provide critical employment opportunities for local residents. Some of the most important amenities that can make or break the long-term viability are schools, public transport, roads, shops, hospitals, parks and water supplies.
Legalities, taxes: Taxation, Government policies, and legalities play a role in the longevity of real estate development, and economic stability. Changes to in these factors within a town or a city can affect the value of a property. Thus, increased taxation in the center of the city will lessen the value of residential possessions in the area, making it cheaper for residents to live outside the center and commute.DEL2