Factors affecting appreciation of Properties

July 18, 2020

Everyone is well aware that property rates appreciate with time. And, thus many look properties as an investment opportunity. But do you know which factors really affect the property rates? Read through the following points, as to how each factor leads to property appreciation. 

  • Establishment of multinational companies

New employment is generated.The property rates of the areas is increased in which MNCs set up their base. These areas also become some of the posh pockets of the city. A good rental market is also observed because of the migrant population coming to city for employment. Residential demand increases, rents go up.

  • Establishment of manufacturing plant

New employment is generated for semi-skilled labours. Thus demand for affordable housing rises.

  • Presence of reputed colleges

The nearby areas have a good market for paying guest accommodation.

  • Developing infrastructure

Since the infrastructure in a part of the city is still developing, there is a large scope of price appreciation as the amenities get in place. 

  • Presence of ring road

The smooth connectivity with commercial hubs, the areas around ring road have a good demand for affordable housing.

  • Presence of metro

The areas having good connectivity with commercial market/hubs through connecting metro will be preferred residential locations thus the property prices increases in those areas.

  • Urbanization / Increased population

Higher population density leads to greater demand for live/work/play real estate.

  • E-commerce growth

Need of warehouses increases.

  • 18-year cycle

Henry George first noticed a very peculiar yet seemingly consistent 18-year cycle through which real estate markets seem to move.

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