Property prices in any city depend on a plethora of factors. It’s the various parameters of a location that determines property prices to a great extent.
Any community grows on the back of a neighbourhood where any property is situated. Be it your child’s growth or family’s safety, this community plays a big role in the liveability of the area, in many ways. In fact, the neighbourhood also impacts property prices significantly.
Although some of the factors that affect property prices are beyond your control, nevertheless it is important to know about these factors.
What Constitute a High Liveability Quotient?
When one invests in a home, it isn’t just the physical shelter that one seeks. One considers various important factors, including locality, cultural appeal, and amenities offered not only by development but by the neighbourhood and most importantly, the liveability factor of the city in question.
A higher liveability quotient means a better quality of life for residents; it means that people have access to a comfortable, clean, engaged, healthy, good lifestyle and opportunities for participation in governance. Some of the most highly valued aspects include better infrastructure in terms of inexpensive energy, convenient mass transit, prominent schools, superior healthcare systems, faster emergency response systems, clean water and air, low crime, and access to diverse entertainment and cultural options.
Obviously, a high liveability quotient pushes up property prices. Even the prospect of significant improvement in liveability in the future increases property prices.
Cultural Compatibility of a Neighbourhood is a Key Factor
Every neighbourhood in a city has its own cultural milieu. For example, Kolkata has its areas of cultural congregation based on the different cultural environments. There are areas where there are a number of theatres or picture galleries, as well as areas that are primarily commercial areas.
A homebuyer must judge a neighbourhood and the cultural propensity of the residents of that neighbourhood before buying a property in any area.
Employment Opportunities in an Area Impacts Property Prices
Every city thrives on its commercial infrastructure. Employment opportunities attract professionals from different regions to a city and create property demand. Thriving cities like Bangalore, Hyderabad, or Gurgaon have witnessed massive uptick in property prices because of this phenomenon.
There are also areas of employment hubs inside a city and nearby areas of such hubs are generally preferred by the homebuyers. These areas usually boast of better social, educational, and healthcare infrastructure. We often experience rapid growth in the prices of properties in these areas.
Green, Open Spaces in a Location is Crucial
Our cities are fighting a war on pollution these days and green, open spaces are crucial in this fight. Green spaces offer a better environment, superior mental relaxation, and improved air quality for the city dwellers. Clearly, the locations in a city with ample green and open spaces are favoured by homebuyers these days.
If a location has more parks, grounds, and gardens they offer the residents to enjoy the proximity with nature and unwind and de-stress. Every city attempts to preserve these areas and properties near these areas are in high demand.
Safety and Crime Rate Affects Property Prices
Safety is a major concern in our cities as our social mosaic has changed to make us more vulnerable. Gated communities, in this respect, score over standalone buildings as they generally have much better security infrastructure installed.
The crime rate of a locality also affects property prices. Poor law and order situation reduces the interest of homebuyers and consequently, the property prices remain subdued and therefore provide a poor return on investment.
Market Rate per Sq. Ft. Captures It All
Every area in any city has a market rate which is the actual transaction price acceptable to both buyer and seller. These are market-determined rates as opposed to circle rates which are fixed by the authorities.
Generally, market rates are arrived at by the transaction costs of different properties of similar configuration and amenities in a location. They are also determined by the present and upcoming infrastructure in a location such as Metro lines, roads, schools and colleges, shopping malls, hospitals, and the distance from office areas.
Before you start considering the location where you would like to buy a property, consider the above factors while choosing a particular property.