Residential property is a property where an individual resides and makes a place of living permanently. The factors affecting the property value may vary due to multiple reasons. On average, a property based in any part of the city sees an increasing rates trend at any location. For example, a property based in any one of the localities in Mumbai that costs Rs.5,000 per square foot in 2010 has seen an appreciation of three times the property value to Rs.15,000 per square foot in the year 2020. Thus there is a drastic increase in property prices. At the same time, the interest rates on loans are declining to benefit the borrower. The interest rates for home loans starting from just 6.50% per annum, which use to be around 10.50% per annum a few years back. In metros, the property’s appreciation is more than the properties based in tier II & tier III cities. The Real estate market has seen a drastic increase in property prices in the past few years. At the same time, the demand for the property remains slack. The real estate sector is reeling under severe slack and is piled up with unsold inventories.
The residential property purchased fetches a good rental value as well. Thus investing in a residential property is a good option as the investor can yield rentals and gain a return on investments. The investor can obtain loans from the bank at attractive interest rates. And can also avail tax benefits under the income tax act 80C. The sale of resale properties is slack in some cities, while the demand is very high as in some cities. Wherever the new construction projects are running at the peak, the resale purchase preference is low. While the places are already occupied with real estate projects and no new construction or few constructions are going on, and the demand is still there for the properties, the demand for resale properties is high. The demand for residential properties also varies according to the market conditions. The market is at its peak; sometimes, the market is slack.
Factors affecting the value of the residential property:
The basic civic infrastructure of the locality:
The basic civic amenities like efficient water supply, electric supply, footpaths, better quality roads, flyovers, and better public transport. Wherever the government expenditure is high on the civic amenities, the ready reckoner rate of the government increases to such localities.
Commercial development in the locality:
Commercial development plays an important role in the development of the locality. In places where there are posh swanky malls, multiplexes, and other recreational activities, the demand for housing is also more as such places look attractive to the people. Thus rates charged for the properties with high commercial development are higher.
Big-ticket infrastructure projects:
The big-ticket infrastructure projects like metro rail, monorail projects, flyovers, skywalks make a big difference to the rates of housing in such localities. Thus the ready reckoner rates are even higher set by the government to recover the cost of the infrastructure. Thus the rates are higher wherever the big-ticket infrastructure projects are sanctioned.
Development of business center & job opportunities:
The locations close to the offices and industrial units are given higher preference by the buyers to buy the houses and thus fetch higher value for the properties. As accessible locations for the jobs are amongst the most preferred locations.
Income levels of the people staying in the localities:
The income earned by the people makes a major difference to the rates & trends of the localities. Wherever the purchasing power of the people is high, the rates go on increasing, and thus the prices do increase as people have higher purchasing capacity. At the same time, in the places where there is low purchasing capacity there, the properties do not fetch much higher values. Thus the purchasing power of the public matters a lot in the case of the rates & trends in the localities. By visiting this site you can buy luxury homes easily.
Thus we can see that multiple factors affect the rates & trends of the localities. The higher the development in the locality, the higher are the prices in that particular location. In every locality, the property rates go on increasing gradually; thus, the investment in any of the locality is always more or less beneficial for the flat buyer.