8 key factors that positively impact capital appreciation of residential property in India!
While buying a residential home, we need to know things that make the prices of our property shoot up over a period of time.
While capital appreciation cannot be a goal in itself, there is no harm in knowing the factors that positively impact the capital appreciation of your property in the long run.
While the factors are listed below, the quality of your life remains more important. Taking a decision of buying must always be driven by the priorities of your life and your loved ones.
Essential factors that affect the capital appreciation of residential property
Location will be at the top of the list when considering the factors that affect property value. If the property is in a prime location the price will be higher. Recently sold properties and the community are the basic factors that affect the rate of the property in a specific location. The schools are located close to the property and their quality also makes an impact on the value of the property. Also, note that the properties located in rural areas are cheaper than the ones within city limits.
Having said that, location is also a matter of personal choice. For instance, if you are in Hyderabad, and want to be close to being near the IT Hub of Hyderabad, then Hi-Tech City, Gachibowli, Madhapur, Nallagandla, and adjoining areas will be your location choice. If being close to nature is a bigger priority, then you will choose a locality like Sainikpuri or Yapral which is located in the lap of nature.
2. Access to Local Transport
Access to public transport is another important factor that affects the price of the property. Properties closer to the bus and train stations, supermarkets, parks, and hospitals are commonly preferred by the buyers. Having said that, social infrastructure in the cities is getting better with each passing month, hence access may not be a constraint in the years ahead across India.
3. Size and Design
The price also depends on the size of the property, the larger the size the higher in price. For example, a two-bedroom house is cheaper than a three-bedroom house but in some instances, the two-bedroom house can be more expensive than a three-bedroom if the total size of the two-bedroom is larger when compared to the three-bedroom.
The layout design has an impact on the value too. An open layout looks more spacious and bigger, which makes the buyer pay more for these kinds of layouts.
With the pandemic, the preference for 3BHK and bigger spaces have gone up across India.
The age of the structure can also be a deciding factor in pricing. The newer the home the higher the price will be because the construction is newly made and no major repairs or maintenance is required. However, there are some old properties that are more expensive than the newer ones because of their historical significance and maintenance.
The condition of the property matters in deciding the value of the property. Older properties which are maintained well and require less renovation are more expensive than the new properties which require more renovations. An important factor is the QUALITY of construction. So, choose a builder who is high on quality, because the resale value of your home will remain HIGH if the QUALITY of construction and specifications of interiors and exteriors are superior!
6. Exterior appearance & View
The exterior appearance of your home is also one of the factors that can help determine the price of your property. If there is a well maintained and good looking garden then one can charge more on the market value.
Potential buyers also consider the view they will see when they look out of the window or balcony. A pleasant view is much more demanding than a blocked view.
7. Improvements and Re-modelling
Making improvements to the major parts or the most used parts of the property would increase the value of the property. Re-modeling the kitchen and making improvements to the wardrobes and some interior designing would increase the value of the property compared to the current market value.
8. Water feasibility
The amount of ground water available in the location can make a major impact on the value of the property. Properties located in ground water scarcity areas are mostly not preferred by the buyers which impacts the depreciation of the price compared to the market value.
The above-mentioned factors can affect understanding of how the capital appreciation of residential property is determined.
It is important to know the worth of the property before buying or selling. Careful research and investigation can help you to choose the right property to invest in and acquire better returns. Balancing it with your family priorities also helps in making a well-informed wise choice.
“We may think that our decisions are guided purely by logic and rationality, but our emotions always play a role in our good decision making process.”– Salma Stockdale
To know more about “Charges, Responsibilities, And Perspectives While Hiring A ‘Property Management Services’ Company In India!” Click here!