Investing in a dream property is definitely an important decision of an individual’s life. A person looks into each and every aspect before buying home. One such aspect includes the future potential of the property i.e. the price appreciation or in real estate terms Return on Investment (ROI).
A good ROI is the ratio between the current value of the property to the original cost. Higher the ROI more is the possibility to gain good on our current property and to buy a bigger house by selling the old one.
Take a look at the top factors that are responsible for Property Price appreciation:
There are various factors which are responsible for the residential property price hike. It may be location, surrounding infrastructure, interest rates, local population, demand, and supply etc.
Inflation means an increase in the price level of different commodities across all segments. In the Real estate, fiscal inflation has a deep impact on the rise and fall of the property price. It leads to an increase in the rate of land, labour, building materials as well as various building certifications.
So, if your residence is in a plush area where the rate of land and other factors increases at a faster rate, it will definitely lead to price appreciation of your property.
Locality of the property
Obviously, a better locality attracts people to invest in that area. It is an important factor that leads to property appreciation. Areas with sound infrastructure like proximity to highway and daily need retail shops and commercial spaces tend to see a frequent price hike in the land rates as well as other costings.
Developer’s Market Track Record
Another major factor that increases or decreases a property price is the developer’s market reputation. If the developer’s background in the delivery of flats is good, it eventually increases the property costing as people tend to rely more on such builders.
Location of the apartment in the Building
These days a homebuyer looks for each and every aspect of a home. Apart from developer and other construction-related queries, an individual also looks for the apartment location, size, vastu compliance, Sunlight flow, ventilation etc. In many tier-1 cities like Mumbai, Gurgaon, people prefer to pay more to acquire top floor. So if you have invested in an apartment on the top floor along with all the above features, it will eventually give you better ROI in future.
Another important feature which appreciates any property price is the various amenities which are present in a residential project. Some of these features include adequate parking space, 24*7 security, presence of clubhouse and sporting facilities. These days, people easily pay for such amenities, hence if you are living in a building with all such amenities, then definitely your property price with an increase with time.