7 Factors Affecting Market Value of Property - An Overview


Date: 6-August,2020Last Updated: 10-February,2021

Market Value of Property is the cornerstone of real estate sector.

These factors affecting market real estate pricing can make or break your income. Want to know how? Read on to know more!

A closer look at the economy in 2020, it is pretty clear that this year is quite tough for any industry to withstand the pandemic's pressure. Globally there has been a sudden downfall of companies and industries which were dominating the markets until 2019 but one industry that set its foot right was Real estate! Even in this volatile market where unexpected things are creating distress among people, Real estate is smoothly building its trust by strengthening its grip on the economy!

Among the globally recognized sectors, Real estate stands out! About 90 percent of investors around the globe have earned massive money by safe real estate investment. The term safe investment doesn't define itself by merely investing in real estate. It is highly essential to know the factors affecting market value of property.

The factors affecting market value of property are as follows;

1. Land Cost

2. Construction Cost

3. Building Specifications

4. Percentage of Open Area

5. Approvals from Authorities

6. Demand Vs. Supply

7. Brand Value of the Builder

factors affecting market value of property

1. Land Cost:

Nowadays, the trend is shifting towards having ease of access to the best in class social infrastructure for homebuyers. Simply put, better infrastructure and roadways, result in more demand for the property.

Land cost is highly determined on the optimum usage of the land that may result in higher returns and its neighbourhood. The more vibrant a locale is, the more demand it would create. This is one of the most critical factors affecting market value of property pricing

2. Construction cost:

It is well said that to make money, we need to spend it first! One of the factors that boost the house value is the construction cost that includes the interiors, exteriors, mechanical, paperwork, quality of materials, etc. This profoundly influences the property pricing. This is also among the essential factors affecting market value of property.

3. Building specifications

The market value of a property is majorly dependent on specifications of the building like adopting new technology, style, etc. it also depends on the quality of materials used while constructing as it estimates the durability, design, and life cycle of the building. Any poorly drawn plan may hamper the value of the house. Also, other qualities like the height, type of foundation. Waterproofing, roof covering, etc. also add to the building's specifications that further influences the property pricing.

4. Percentage of the open area:

Open space is nothing but the area is which is left free in and around the property. This is one of the significant factors affecting the market value of the property as it adds aesthetic value to the property. In recent years, many builders have prioritized the need of having a wider open area in and around the property to assist a healthy lifestyle to the residents.

market value of property

5. Approvals from Authorities:

Whether you are a home buyer or someone who wants to invest in real estate, be sure of having a checklist of major property approval documents before proceeding with the same. With the fraudulent activities increasing day by day, it is necessary to have legal and concerned authorities approvals beforehand. Having a cross-check of documents before planning to spend your money on them will also give you an idea of the builder or seller which will help you decide if they are trustworthy or not. Thus, it is highly necessary for safety and security purposes. Thus, registration and legal requirements as per the real estate norms play a significant role in estimating the property demand & is is also one of the factors relating to market value of property.

6. Demand Vs. Supply:

Unlike other investment methods available in the market, property pricing also depends on the demand and supply chain in the economy. For example, In India, after 2 years of constant demand in real estate, today, around 8 countries have witnessed about 54% decrease in the price of the home, considering it as affordable housing to make it feasible for homebuyers to buy home. It's much-needed to stay updated with government policies every now and then if you're hoping to determine variations in demand and supply.

7. Brand Value of the Builder:

Planning to buy a home is indeed one of the most important decisions in life. We have to deal with confusions and dilemmas with many builders in the market before choosing the best for us. Talking about brands, few ones like Prestige Group, Sobha Ltd might pop in your mind. However, considering the pricing aspect, it takes quality time to decide the best. On the contrary, choosing an unsung or not so famous builder could lead to a blunder. Thus, it is highly recommended to switch to a renowned builder that will sell you at a convincing rate for a safe, sound, and reliable investment.

From a long time now, real estate has been the most trust worthy investment source which is known to give higher returns in the safest way possible. That being said, considering the annual hike in market value of real estate, even during this pandemic hit, it is a best choice to invest as its a buyer's market today. However, before you plan to buy, ensure that you have a checklist of the factors affecting market value of property, as mentioned above.

Did we help ?

Post Response

Categories

                           

Latest Blogs

Why Read Real Estate Blogs?

Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.

However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!

The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.

The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.

Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.

What sets India's favorite Homes247.in Blog Posts apart?

We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!

And Voilà! We present to you the most Interesting and Informative blogs!

As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!

We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!

However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.

What is the Importance of Real Estate Blogs?

Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!

If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.

The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.

With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!

We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.

We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.

In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.

We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.

At Homes247.in, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.

Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.

On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.