Factors that affect the value of a Property
There are so many factors which directly or indirectly affect the price of a property. In this article we will learn all those factors affecting real estate value.
Location
Properties in metro cities are always costlier than properties in small cities. Property in Lutyens Delhi will be costlier than west Delhi. When it comes to property price it is the location of the property that matters the most. Commercial property is always priced higher than residential property. Property price tend to go up if the location is surrounded by greenery.
Features and size
Size and features affect the price. A well designed home equipped with latest technology and modern look will be valued more. Similarly the size also decides the price of the property. A four BHK home is going to be quoted more than a 2 bhk flat in the same location. A home with lawn and swimming pool is obviously going to cost you more as compared to simple home. Other amenities like electricity connection, water connection, parking, gymnasium and play area etc. decide the price of the property.
Supply and demand
This is a universal parameter that applies to everything. If demand is more than supply then the price will automatically go up and if supply exceeds demand then property price fall.
Economic Impact
Current economy of the country can have an impact on the property market. If the economy is growing, job opportunities are increasing, businesses are witnessing growth then a whole lot of people will be able to buy home which leads to rising property values.
Interest rates
Monetary policy of the reserve bank of India affects the value of the property. Property rates fluctuate when RBI increases or decreases repo rate.
Government Policy
Government policy can have positive or negative impact on the real estate market. GST implementation, demonetisation and RERA affected the property value the most. Due to these policies real estate market has been struggling for last 2 years.
Transport & Public amenities
Property prices have gone up in many locations after metro has been operation in Delhi and other cities. People want transport facility nearby to their house. School, college, hospital, community hall are in great demand which eventually causing the rising price of the property.
