5 Factors that influence property price appreciation
December 15, 2018
Buying a house is not a cake walk. While purchasing a property there are countless factors that people need to keep in mind before investing their hard earn money. Once invested in a good property, it can prove to be a life-long profit. Now what defines a Good Property? There are a lot of factors that makes a property ideal for investing, but the major aspect is the possibility of price appreciation.
Price appreciation is the increase in the value of the property over a time period. This price escalation depends on various features like infrastructure development, location, connectivity, amenities, and so on. It also unwinds option of selling the current property and buying a bigger and better one according to the one’s family requirement.
Let’s talk about the top 5 factors that influence property price appreciation in brief:
The first thing that buyers look for, is the location, which makes it the major factor that influences the appreciation of any property. Is the property near your office, schools, parks and commercial hubs? Or are there any proposed infrastructural projects near the area? And the most important thing, is the property located in a serene location? These are the location related concerns among buyers, and these features increase the chances of appreciation.
Next to location comes the connectivity factor. The connectivity should be smooth which is possible only if property is near highways, bypass, metro, public transport or flyovers. If not already constructed then there should be ongoing development in or near the region. This boosts the possibility of price appreciation.
Infrastructure is the backbone of real-estate. Where there is infrastructural development there is price appreciation. Development attracts buyers as it shows the potential of a particular region. Smooth roads, proximity, street lights, etc.
Nearby Amenities like Schools, Hospitals, Institutions, etc.
Amenities are the USP of any property. The presence of reputed schools, hospitals, shopping malls, amusement hubs, and other institutions make the place more striking. This results in an increase in demand and ultimately leads to property price appreciation.
Cost of living
Low cost of living is another major aspect that leads to property price appreciation. The same facility and amenities that one gets at a lower price is always preferred than that of high living society. For instance, the one can get similar luxurious facilities in the centre of the city and in outskirts of the city, but the difference will be the cost which will be less in the suburbs. Hence, this factor makes it more appealing to the buyers resulting in the property price appreciation.
All the aforementioned factors are only possible to find in the suburbs like Modi Nagar and Raj Nagar Extension. These regions are epitome in terms of connectivity, infrastructure, amenities, and most of all cost of living. The constant developments in these areas are rapidly increasing the possibility of property price appreciation.