Have you wondered what could be the reasons a prperty expanded over the same square yards can have dramatic price variations? What could be the driving forces that may lead you to shell out money for a property that your neighbor just bought at a pocket-friendly rate? We are quite convinced that many times in your life, you might have thought about investing in a property or buying one for yourself, but are not able to really understand the way property rates fluctuate on a very regular basis. In addition to these questions, there is many more question that people aren’t able to find a justified solution to, and that stops or prevents them from investing in a property. If these questions bother you too, worry not as we unravel the mystery of fluctuating prices for you here!
1. Demand and Supply
High demand and high supply? Sounds impossible? Because it is so! Whenever the demand for any service in the market increases, its supply decreases by default. The same applies to properties as well – be it residential as well as commercial properties. Nowadays, people are prepared to live a lavish life and are not willing to compromise when it comes to the lifestyles. On the same parameter, whenever the demand of a particular kind of property increases, the supply becomes scant. Taking the benefit of the same situation, the prices of the properties are increased.
2. Infrastructural Development
The modern generation of 2022 wants everything the best. Considering the same factors, the property makers make globally advance infrastructures and architectural designers. When a lot of investment is made in designing a particular property, the prices of the same are hiked accordingly. A good infrastructure also equals spending more money on the same kind of property that might be spread on the same square yards but is not globally or technological as advanced.
3. Loans on Properties
There are very few people who prefer buying properties via one time payment. More often than not people take loan from banks and invest the money in residential or commercial properties. The rate of interest at which the loan can be taken from the bank act as a dominant factor here. When the rate of interest on the loan is high, people are not willing to spend a lot on the properties they buy. On the other hand, when the rate of interest on the loan is lower people, are willing to shell out more money to buy the properties. Therefore, loans act as a very significant aspect that can determine the rates of property at a particular time in a particular location.
4. Fiscal Growth
Fiscal growth directly impacts the property rates at any area. When people are able to afford luxury housing for themselves, they spend more money in maintaining it too. Whenever the economy of the country looks promising, a similar kind of investment is made in improving the overall way of lives as well. It has been noted that during and immediately after the pandemic, people had taken pause in investing in properties as there were other immediate concerns to be resolved. Since the beginning of 2022, the situation has become bright again and people are earning better and are investing more generously in property.
The urban youth of India, and especially Delhi NCR and Gurgaon, doesn’t like to accommodate in lesser facilities. Even in the ready to move-in properties, people like to customize their homes as per their individual desires. Everyone wants to have a singular way of living. There’s no limit to the amount you can spend on making your house a dream project. If you want an extended balcony or an extended verandah, you need to spend more. Even if you wish to improve lightening or space system in your house, the rates of properties will continue to improve exponentially accordingly.