Factors impacting value of your property
Indian real estate is growing at an unprecedented scale. As the real estate prices are growing, the realty sector is becoming the most coveted investment option. However, before investing in real estate, you need to know where the property valuation stands at. Here are some of the most important factors impacting property valuation in India.
Location:
Location is the most important factor that drives the property valuation and determines how much appreciation would take place. Usually, places close to commercial centers witness higher appreciation than the residential areas. Properties in well developed areas with good infrastructure facilities like water supply, road connectivity, electricity, etc. cost you more and also have greater chances of appreciation compared to the upcoming areas. In New Delhi, developed areas like Lajpat Nagar, Defence Colony and Greater Kailash come in the average price range of 20,000, 32,300 and 21,200 respectively.
Infrastructure:
Well developed infrastructure draws healthy appreciation in property prices. Properties close to flyovers, malls, schools, airports and railway stations have a better chance of appreciation than the rest of the localities. In Bangalore, North Bangalore areas like Hebbal near Bangalore International Airport Ltd (BIAL) have witnessed huge demand for apartments for sale or rent. The area has seen highest price appreciation in the range of 10%-12% till the quarter ending December, 2012.
Amenities:
Amenities attract new age home buyers as they like to experience a luxurious lifestyle that would boost their living standards. Projects with world standard amenities like swimming pool, gym, tennis court, children play arena, etc. offer a better appreciation value. Integrated townships are becoming new favourites for the young professionals, which usually incorporate the world class amenities and infrastructure. If you invest in a property which boasts of these amenities, chances are bright that it will draw steady and rapid appreciation.
Land availability:
Property valuation is inversely proportionate to availability of land parcels. If there is a scarcity of land, then the value of properties would go up in those specific areas. Areas in the heart of the city are much costlier than the outskirts as the availability of land is scarce in those areas. Although suburbs are attracting realty development at a rapid pace in cities like Chennai and Bangalore, city properties continue to witness higher appreciation in value.
Customized properties:
Customized homes/flats always cost more than the conventional buildings. Customized requirements like up gradation of kitchen, top quality of wall paints, customized flooring would definitely add to the worth of the property. Real estate sector is very sensitive to the requirements of the customer and as the customization satisfies particular needs of buyers, the valuation of the property adorned with customization goes up.
Construction:
Construction of the building also impacts valuation of the building. Elements like architecture, layout, design and materials used determine the worth of the property. Buyers would like the property to have a long life span and to have a sound architecture. India is a vast country and construction differs from region to region due to difference in climate, soil and other geographical elements.
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