The real estate market is very dynamic. However, real estate property value keep on fluctuating based on numerous factors. Due to this reason, real estate has been responsible for representing a major portion of most people’s wealth. It doesn’t matter if you are a buyer or a seller; either of you must understand these sought-after elements to be a competitive player in the real estate market.
Over the years, people have assumed that location is the sole contributor to the oscillation of property prices. But the boost in property prices and the decline in property prices depend on several other factors.
Key Factors Driving the Surge in Property Value
The Temptation of Location
Location is the crucial factor behind increased property prices. It is natural for prices to increase in major cities like Delhi, Mumbai, etc. The presence of prestigious neighbourhoods, renowned schools, and transportation hubs nearby the property can significantly influence property prices.
A buyer is ready to pay a premium for a prime location. Buyers are willing to pay more, so brokers normally charge more for properties in well-developed areas.
Suppose you are new to Bangalore; you will find expensive properties compared to other places. Bangalore is a metropolitan city and is an industrial hub too. So it’s normal for property prices to be higher in Bangalore compared to other places.
Need for Luxurious Amenities
The more comfortable a house is, the more its value. The value of a property depends upon the facilities and luxuries provided by the property. If you wish for an elevated lifestyle, be ready to pay more. A buyer doesn’t hesitate to pay a big price for such properties because the buyer is getting the amenities that would elevate their lifestyle.
Features like swimming pools, spas, built-in gyms, lifts, etc., attract buyers seeking comfort and convenience. As there are potential buyers for these, the property prices increase accordingly.
Impressive architecture Effecting on Property Value
The architecture of a property might also contribute to the increase in property prices. Properties with open floor plans, high ceilings, interior almirahs, exquisite finishes, etc., are sure to have high prices.
A mark of excellence will cost you more. The high-quality finishes and architecture leave a lasting impression on the buyer. These properties pose a symbol of exclusivity, so buyers tend to pay more for these properties.
Security
Security is a must-factor these days. Buyers have started prioritising the factor of security over every other factor. Gated communities, surveillance cameras, security systems, etc., are some of a buyer’s desired features. Each human being wishes to live in a relaxed state of mind. Staying in a safe place helps in attaining a peaceful state of mind.
As there are buyers in the market for this field, there would be an increase in the prices of the properties offering these facilities.
Economic conditions
Fluctuations in property prices depend a lot on a country’s economic condition. When the inflation rate is high, the value of money reduces. This means a builder spends more on construction materials, labour, permits, etc. As the seller spends more, it is natural for property prices to increase.
Need for sustainability
The environment is considered a matter of concern by the inhabitants of Earth, and it is a good thing. These concerns have led humans to opt for energy-efficient resources that might aid sustainability.
The Real Estate market has seen increased prices of properties offering energy-efficient and sustainable resources. Those properties equipped with solar panels, energy-efficient appliances, smart climate control systems, and eco-friendly construction materials have a comparatively higher price.
Buyers are more than willing to pay a good price for properties that offer these facilities, or you can say people are willing to pay a price for a green future.
Effective Tips to Boost Property Value
If you’re selling a property and want to increase its value, don’t worry! We have the information you need. Check out the table below for all the details.
| Upgrade your property | This is a primary and most important tip to increase your property value. When you upgrade your home, buyers are ready to pay a huge sum for your property. You can try upgrading your property, like giving it a fresh coat of paint, replacing old lights with new trendy lights, etc. |
| Give your property a refreshing makeover | The makeover is a viral trend among people. Install new plants on your property, hang plant pots in the verandah, etc. When they get the visual impression, a buyer will be ready to pay a good sum. |
| Invest in Kitchens and Bathrooms. | A buyer’s first interest while buying a property is in the kitchen and bathroom. Kitchens and bathrooms are the most looked-at factors before buying a property. Start upgrading the bathroom by installing false ceiling bathrooms, and beautiful tiles, while you can remodel the kitchen by installing modular kitchens, built-in-ovens, etc. |
| Advertise your property | If you want a higher value, start advertising your property in home staging services. A simple To-Let sign outside your property won’t bring you many leads. Start advertising your property on leading websites. You can also promote your property on social media platforms. |
Conclusion
You must have seen that several factors are responsible for the observed fluctuations in property prices. Among all the responsible factors, some undoubtedly impose a greater impact on the fluctuations. Features such as primitive locations, amenities providing exclusive lifestyles, security systems, etc., are responsible for a hike in property prices.
These factors differ depending on the market situation at that time. So if you are a buyer looking for an ideal property, consider all the factors before buying one. Analyse smartly enough to understand if you are paying the right price for the property.
In the other scenario, if you are a seller looking to sell a property, keep a decent value for the property you are offering, provided the market conditions and the location.
FAQs
Is the size and condition of a property responsible for the fluctuations in property prices?
Yes. The size of a property, comprising land size and built-up area, plays a crucial role in determining its value. A property with a larger area will have higher prices. Therefore buyers are ready to pay a heavy amount for a bigger house. The size of a property is proportional to its price. As the size increases, the prices keep on increasing. Well-maintained and aesthetic properties also tend to have higher prices.
How are the neighbourhood and community responsible for fluctuations in property prices?
The general quality of the neighbourhood and community can influence property values. Areas having low crime rates, popular schools, access to healthcare, and a sense of community can all contribute to higher property values. Prices in desirable neighbourhoods with well-maintained infrastructure and a positive reputation tend to rise. A property near hospitals or business places is likely to have higher prices. There is an increased demand for properties in those places. Hence it is likely for prices to increase in case of higher demand.
How do market demand and supply affect fluctuations in property prices?
Property prices are influenced by the real estate market’s balance of supply and demand. Prices tend to rise when demand for properties exceeds available supply. Population growth, migration trends, and urbanisation can all impact market dynamics and, as a result, property prices. As urbanisation increases, more people shift from rural to urban areas, increasing property demand. Sellers take this advantage of demands and raise the prices of the properties accordingly.
