5 Factors That Ensure Property Price AppreciationJune 28, 2018
Investment in real estate are highly encouraged when capital appreciation is ensured. The real estate appreciation is also receiving great interests from people who prefer buying over renting as there are high chances for their property becoming a source of financial security in the future. Appreciation also promotes selling the first property for a bigger and better one that ensures good returns in the future.
Below listed are the factors that encourage property price appreciation.
1. Demand and supply
If there is an increased demand for houses in an area, the prices tend to go up if the projects being built to meet the demand are not sufficient. Also, people are willing to pay more for property in an area which is deemed attractive and desirable.
Inflation is the result of excess money in circulation which essentially decreases the value of money. When this occurs, prices of land, construction materials, labour charges and building permits also increases which ends in increased property prices.
3. Home loan interest rates
The increase or decrease in the home loan interest rates is directly related to price appreciation. When home loan interests or the cost of borrowing increases, demand for homes decreases as fewer buyers will be able to afford high EMIs. Similarly, the decrease in interest rates increases affordability and thus ensures higher demand for properties.
4. Market drivers
This refers to every development in the area which positively impacts the convenience and desirability of living there. These include development of office complexes and shopping malls, proximity to schools, colleges and hospitals, zoning regulations which ensure open spaces, public transport facilities and upcoming infrastructure projects.
5. Population growth
The growth of population in an area results in increase housing demands, which in turn encourages better appreciation of property prices.
Ladder Kerala is one among the trusted builders for luxury flats in Calicut. Their flagship project Ladder Mankav Greens have become the choicest address among premium apartments in Calicut owing to the presence of most-modern amenities and international designs which facilitate an envious urban lifestyle.