5 Factors That Influence Property Appreciation

Real estate is undoubtedly one of the most stable yet lucrative forms of financial investment. However, it is important for buyers to look out for certain parameters that guarantee steady value appreciation on the investment. Investing in property that doesn’t seem to hold the promise of growth can be a financial blunder, so it is essential to acquaint yourself with the factors that influence property appreciation.

These are the top 5 factors that determine how well a property will appreciate:

1.The locality and neighbourhood:

The safety, accessibility and connectivity of the locality directly influence the appreciation of the real estate in the area. A scenic view, green and peaceful surroundings, and proximity to sought-after destinations are some other features that guarantee steady value appreciation.

2.Social infrastructure in the area:

The locality must boast of well-developed social infrastructure in order to have the real estate appreciate steadily. Well-maintained roads and access to public transit systems as well as to civic amenities like reputed schools, hospitals, shopping malls, employment hubs, etc. will enable the property to appreciate at a good rate.

3. The features of the property:

The dynamics of the property—such as its direction, layout, and size– play an important role in its growth story. Corner homes and properties that receive ample sunlight are known to appreciate well. Homes that are Vaastu-compliant and are equipped with modern amenities are sure to be in great demand.

4.Feasibility of home loans:

Anything that augments the demand to supply ratio of the property will have a direct impact on its value appreciation. One of the foremost factors in this regard is the ease of getting a home loan sanctioned. As the interest rates on home loans drop, the demand for property increases. This allows real estate to appreciate steadily.

5.The reputation of the builder:

The real estate developer’s reputation plays an important role in determining the value of the property. A trusted developer guarantees quality construction, on-time delivery and efficient and transparent processes, all of which increase the demand for the property and influence value appreciation.

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