Real estate represents a significant portion of most people’s wealth, and this is especially true for many homeowners in Chennai. The city has gained momentum with increasing number of people showcasing their interest to invest in residential and commercial properties.
There are many reasons that have led to the demand of residential property in Chennai. The physical infrastructure of the city is quite well in place with reasonably good roads, railways, and air and sea transport networks. The city also enjoys a robust social infrastructure with extravagant malls, huge shopping complexes, clubs, restaurants and various other fun and entertainment avenues.
So how exactly are real estate prices determined? We’ve uncovered the most important factors affecting the housing market and that will almost certainly impact the price of your home.
Knowledge of demographic factors such as age, race, gender and median income of a particular area will help you anticipate market trends and better position your homes for sale. These statistics are an often overlooked but significant factor that affects how real estate is priced and what types of properties are in demand.
Politics, banks and the global economy can all influence the real estate market when it comes to interest rates. Changes in interest rates can greatly influence a person’s ability to purchase a residential property. Keep an eye on what’s happening in the global market and with foreign investment as these play large roles into the expectations of the local market as well.
The state of the economy plays a huge part in the amount of money that is available for people to buy homes. This is generally measured by economic indicators such as the GDP, employment data, manufacturing activity, the prices of goods, etc.
Comparable properties, sometimes called “comps”, sold in your area also impact your own home’s market value. Appraisers and real estate agents look at recent sales of homes with similar features to use as a benchmark against your home’s potential price. Comps are usually the key driver for the appraisal process.
Other Factors are:
• Consumer confidence
• Local builder activity
• Zoning restriction
• Local regulations dictate new home supply and prices react to too much or too little supply
Most prospective buyers have their customised lists of features and services that are personally important to them. There are several forces at play here, and it is not easy to plan for all of them. In fact, some of them are beyond our control. Keep these factors in mind the next time you start prospecting for new property and reap the advantage with the above said factors.