Some real facts about real estate property market
Real estate property is consist of property, land, and buildings. Real estate property value is estimated by an expert property valuers which helps owners, buyers, sellers, when where one should make the investment in real estate property. There are four categories in which the real estate property has been divided.
First is residential property – used for residential purposes like dwelling, penthouses, rental houses, flats, duplexes etc.
Second one is – Commercial buildings used for a commercial purpose like – hotels, offices, shops, malls etc.
Third one is – Industrial property includes manufacturing units, warehouses etc.
Four category is – Land and farms – Open land used for agriculture purposes, vacant lands etc.
According to the economists the real estate market and country’s economy go hand in hand. When economy is rising or in good health, interest rates rise and real estate property prices rise.
When economy is slow, interest rates go down and real estate market property values decrease. Then another factor came into scene – ‘Demand’. When real estate value decreases more and more people inclined themselves to buy the real estate properties thus demand increase which significantly increases the property value and prices.
Demand and price are directly proportional to each other. As, supply is limited in the real estate property market, when demand increases, prices go high. When demand decreases price will decrease automatically.
Some people have strong belief over this fact that – “property market directs the economy, and also economic health of any place can be checked via real estate property market condition”.
Impact of demand on real estate –
Now understand how demand increases or decreases. Basically, demand gets influenced by various factors like – No. of households, people’s income and employment level, people ability to purchase, standard of living, country’s economy, local market condition, interest rates, mortgage rates, tax rates, how easily mortgage credit is available, local rents and more.
Impact of supply on real estate –
Supply is constant factor in real estate, but if we talk about people change location for various reasons there can be increase in supply like – in case of relocation, buying new home, constructing new home, construction of new buildings can increase the supply of real estate property in the market.
Dynamic market conditions –
The value of the property changes as the market conditions changes. As it changes frequently. So you can see the significant change in the property value when you purchased and when you are planning to sell it.
Ask property valuers and land valuers to estimate the actual market value of the property before buying and selling the property. They are the experts, who are well aware of the current market and economy conditions and future as well. They have enough knowledge of – how to gather the property data and to calculate the property value. Real estate property valuers are the professionals who inspects the property and find the property value appropriately.
So, for pre-purchase and pre-sale analysis hire an experienced property valuer or land valuer before taking any decision related to real estate property.
Real estate market investment needs a huge amount of money. And property buying and selling decision is a tricky one as you have to take all the influencing factors into consideration. This can’t be possible without real estate property valuer.
If you have any query related to the property valuation services feel free to contact us.