4 Key Factors Influencing The Market Value Of Residential ProjectsJanuary 28, 2019
In today’s world, not only the investors but home buyers are also keen in observing the market value of residential properties. With the real estate sector witnessing a boom in its market value people have started investing more and thus, calculate the estimate value of properties beforehand itself. Be it while buying a home, selling or otherwise, they keep themselves updated with the current market value of properties. But ever thought about the factors that influence those rates?
Here are the 4 key factors which influence the market value of residential projects:
1. Booming Infrastructural Development
Healthcare facilities, educational institutions, bus terminals, entertainment hubs and what not, a residential project at a locality surrounded by all amenities and basic requirements adds to the value growth of the property. They not just help in meeting daily necessities but also offer good connectivity. With such infrastructural developments in close proximity to residential projects there is a high-demand for the same resulting in an increase of its market value.
2. Popularity of Location
Another significant factor that influences the market value of properties is the popularity of the location. The popularity would depend on factors like the quality of facilities provided in that locality, living environment, neighborhood, etc. A city centre location with a residential project surrounded by amenities is an ideal example for a popular location. These factors influence the qualitative and quantitative aspects of a home and there are customers who are ready to pay a handsome amount of money for properties in those localities. As a result, these kinds of demand pave way for the rise in residential property prices to increase even further.
3. Current market status
The current market status plays a pivotal role in influencing the price of properties. If it is experiencing inflation the prices for construction materials, labour, building permits, etc. gets pushed. As a result, the final value of the property also goes up. Depending on the market status, be it a strong growth or a dip, the market value of residential properties get influenced by a high margin.
4. Interest Rates
Changes in RBI monetary policies can influence the value of the property. A raise in the bank rates affects home loan interest rates thereby bringing the average monthly mortgage repayment rates up. Due to the unaffordable interest rates, home buyers step away from investing in properties and therefore, prices of properties will also drop. This not only brings down the competition but also adversely affects the real estate market.
Before investing in residential projects, investors should conduct a fair analysis and valuation of the property. Considering the aforesaid factors, builders in Calicut offer residential projects at the best locations and at the best rates.
For more details about the projects, visit https://ladderkerala.com/projects/