What are the factors that Increases Property Price?
Investment in property or any other asset is one of the vital decisions of an individual’s life. When someone wants to invest they look into various aspects. One important aspect includes price appreciation or the ROI (Return on Investment). The future potential of the property is considered before making the investment decision.
ROI is calculated as the ratio between ration of current property value to the original property cost. High ROI means good gains on the current property. Also, one can sell the current property by reaping the benefits and the buy a bigger property.
ROI= Current Value of property/ Original property cost
What factors can lead to appreciation in property?
Let’s take a look at those factors:
Various factors that can affect the residential property prices may include location, neighborhood, infrastructure, interest rates, demand, and supply etc.
What is inflation?
Inflation is general increase in prices of different commodities. In the realty sector, fiscal inflation deeply impacts on the rise and fall of prices of property. As the government policies tends to increase the rate of labour, construction materials, land, building certificates and many other things.
Location of the property
A good location always speaks for itself and appeals people to invest in that area. It is the most significant factor for property appreciation. Areas that have social infrastructure nearby, smooth connectivity to highways and daily needs shops in the close proximity always tend to have better ROI.
So, if you want price appreciation of your property then invest in the locality where rate of land increase at a faster rate.
Developer’s Market Value
The other factor that can increase or decrease the property prices is the reputation of the developer. If, the developer’s background is good in terms of delivery of flats, quality of construction then the property price is expected to increase of such builders.
Apartment’s location in the Building
The location of apartment in the building is another aspect. The buyer looks for size, vaastu compliance, cross ventilation, flow of sunlight, etc… If you see in Mumbai you have to pay more to acquire top floor and in Delhi- NCR you have to PLC for lower floor apartments.
So, if you have invested in an apartment with all the above mentioned features, it will eventually give you better ROI in future.
Amenities and Features
Another important feature that increases the property price depends on various amenities that are there in the project. Some of them are adequate parking space, 24*7 security, clubhouse, gym, party hall, etc. Hence, buildings that have all such amenities, then the probability of price increases is more. These are some of the major factors that increase the value/prices of the property. So, whenever you want to invest and get better ROI then do look into this points to make your investment a sound investment.