5 reasons for rising property prices in India

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Friday, 03 January 2014

Outline: There are many reasons why a property rate can rise. In this article, the 5 main reasons have been brought to light. The real estate market can offer a lot to property owners a huge scope of profits as well as income for people who wish to buy or sell a property.

Owning a property or properties is a dream that everyone has in their life. This is one of the best forms of investments that a person can do. It is also a good form of returns as you can get a resale value that is more than what you paid when you buy the property. 

The real estate industry in India has seen its ups and downs in drastic levels. This is one sector which can flourish really well when it is at its peak however if there is a downfall or the market becomes sluggish, then it can get very frustrating for property owners.  Property rates are always fluctuating due to the constant changes in the market.

There are many construction companies that are coming up with different styles, features and facilities that they offer people who wish to buy the property from them. There are many factors which influence the price of a property however there are some constant factors which are major contributors for rising property prices in India. In this article, you will get to know the top 5 reasons which influences property rates in India

• The Economic growth of the country

The country's economy plays a vital factor on the prices of various commodities including property prices. When the economy is at its peak, real estate owners can get a good deal on their property as people can afford it or is able to get finance from various funding companies. The rise of income results to a higher percentage of profits which can be earned. The economy affects every aspect of financial doings in a place. This would also be a driving force on the rates of property.

• Availability of different financial options

Another reason for the rise in property is also the fact that financial companies or mortgage companies are always eager to provide finance and order to generate more revenue for their company. They have now become comparatively lenient towards the qualifying criteria's for people to obtain mortgage loans. They come up with various schemes for people who are looking out for mortgage loans. These schemes make can be very helpful for people. One of the most common schemes that are offered is low interest rates in comparison to the market. 

• The location of the property

The geographic location of the property also plays a vital role in the price of the property. When a property is located is a location that is at a peak in terms of popularity or crowd, the rates of properties in that location can touch the sky. Similarly, if a property is present in a location that is growing, then that can also be the reason for why property prices may rise. There are also some people who prefer a location that is away from the crowd, then they would want to opt for a property that is located a little outskirts from the city or even way inside. It totally depends on the person's choice as to where they would want to buy a property. 

• Features and amenities offered in the property complex

Now-a-days, there are different facilities which are provided when a person goes to buy a property. Be it in the form of a club house with all the latest gym equipments, gaming areas like tennis, badminton, squash courts etc., to even up to date security gadgets which enhance the safety of the people living in the vicinity. They all contribute towards the overall cost of the price that would be set for each property that is going to be sold.

• Accessibility of different things

Another important player that plays a role is the nearby access to different facilities. This would include shopping malls, medical care centers, educational facilities, parks and gardens, cinema theatres etc. Apart from this, the ability to find public transport also plays an essential role. When you live in a place where these things are easily accessible, it makes life very easy and simple for a person to live. The locality also depends on the kind of crowd you would want to live in. For example, if you are a family man, then you would want to shift in a place where your children and family would be more comfortable to live at.Apart from the above mentioned five reasons for Rising property prices in India, there are also various other contributing factors which influence the prices of property. These five reasons are the main driving force what determines the overall price of any property be it big or small.

Written By: Ruchika Khanna | Author Bio: The writer of the article is an expert in analyzing the contributing factors that influence the real estate market. In this article, the writer has provided a brief insight on some of the factors that influence the overall cost of a property.