Buying an appreciating property is common nowadays as there are many new flats in Perumbakkam, Sholinganallur and the entire OMR and ECR stretch, but knowing the factors for appreciation is highly important. Investing in the realty market can reward you with good returns if the factors that affect the value of the property are in your favour.
Appreciation is a concept in real estate that defines the increase in property value because of certain factors that influence its rate. Real estate appreciation, be it homes in Injambakkam, Villas in ECR or Perumbakkam flats, takes place because of factors like economic trends, household finances and consumer confidence, which are major drivers for the appraisal in the property value.
The social and physical infrastructure is a major growth factor for the real estate market. Changes in the infrastructure in and around the property add an established liveability quotient for the consumers. Factors like new workspace, shopping malls, flyovers, schools and hospitals etc. all contribute in the appreciation. Projects that interlink localities to the neighbourhood areas also influence the price of the property. The better the infrastructure, greater will be the value.
The demand and supply is influential of human behaviour. Home buyers prefer locations which are sound in terms of infrastructure. Sometimes consumers are willing to pay more for a property because they find living in that location desirable. This demand again brings in the real estate investors, who buy properties to sell them at a profitable rate when supply slows down. This causes the property prices in that location to rise even further. The time for end-users to make their purchase is before the investor activity starts in promising locations with high appreciation potential.
The growth of a Smart City can give way to opportunities, particularly from the real estate perspective. These cities are considered a good bet for investors and buyers who are putting in their money for the longer run. At present, prices in these cities are reasonable. The potential for price appreciation is high with the implementation of the smart solution in the next couple of years.
