Are there any factors that affect the property value?

Introduction

The real estate sector is always an investor’s delight. There are home buyers looking to buy property or put up their existing property on the market for sale. People usually buy property either as an investment strategy or to actually reside in it for the time period. However, whether you are looking to buy and sell immediately, or sell at a later point in the future, there are a number of factors that affect the property value.

The returns you may have anticipated at the time of making the purchase may have changed due to surrounding factors that impact the value, positively or adversely. Other factors that affect property appraisal also include inflation, consumer confidence, infrastructure and finances.

What affects property value?

The market forces of demand and supply create the value of a product. It is estimated that the number of home buyers have risen by 20 percent, which tells real estate developers that there is an anticipated demand for which they need to create the supply by building new projects. However, it is not as straightforward as it looks. Let’s say that there is a huge demand for housing, however, the supply is limited due to various factors. In this case, then the property value will surge since there is a shortfall of supply. Other aspects such as increased purchasing power, for which the IT industry is well-known for also creates an added impetus for buying property.

Now that demand and supply have been established, the next factor that prospective clients look into is the location and accessibility of the property. It has a huge influence on the pricing and sale aspect. A property which has the potential for great development in terms of roads, schools, transportation or is seen as a status symbol will probably catch the interest of the buyer who looks at it as an important criterion for his or her family. If the property is in a well-located area, but has been built years ago, then the age of the property also has a direct impact on its value.

Further, the quality of the property such as the need for renovation, repairs and its historical significance also makes a difference. Heritage lovers my probably enjoy such properties with some modifications. A property that has been built with similar features in different locations will attract price differences by virtue of that location. The styling of the property is also a huge preference among buyers, be it a semi-detached property, or one with terrace, types of fittings, the modernistic feel or a blend between modernity and the old world charm, influence the property value.

The size of the property is yet another huge aspect that affects the pricing. There is a difference in paying a rental or buying a property of a 1200 square feet and a property that is sized at 900 square feet. The development of malls and properties near IT hubs are also strategically designed to address commuting hours and bring infrastructure within reach.