Many people in India dream of owning a residential apartment. Investing in an apartment has become a trend that has exceeded the demand in the real estate sector. Given that a flat’s value appreciates over time, investors find them the best investment opportunities. In this blog, we will discover apartment value appreciation, meaning, and factors affecting its value.
What is apartment value appreciation?
Apartment value appreciation means the gradual increase in the price of a residential flat. It’s apparent that the cost of an apartment you buy today will increase in future. There comes a time when it surpasses the actual amount you paid during purchase.
What factors influence apartment value appreciation?
There are several factors that influence the appreciation value of an apartment in India’s real estate. Let’s check out them.
Location of the property
Whether you buy a plot or flat, its location has a major role to play in its value appreciation. The rates go higher in popular locations. Such locations boast of infrastructure and connectivity that bring in real estate investments. Also, the access to nearby amenities like hospitals, schools, shopping centres, gyms, etc., adds to the value of the flat and boosts its appreciation.
Infrastructure development
Infrastructure development also boosts property appreciation of a specific area. Construction of new roads, metro lines, bridges, and smooth transportation accelerates boosts accessibility to and from other areas. So, having an apartment in such an area attracts higher appreciation value in future.
Economic development
Cities and towns having rapid development usually have higher chances of property price appreciation. For example, residential apartments in Lucknow’s Sushant Golf City are set for higher appreciation value due to the rapid economic development in the area.
The robust infrastructure development like highways, public amenities, airports, and metro lines define the economic development in that area.
Government policies
The value of a property is also dependent on government policies. Any change in such policies may highly influence the appreciation value of a building. Favorable lending plans, affordable housing schemes, and tax incentives can influence demand and value of property.
Quality construction
Nobody likes to pay for a poorly constructed apartment. So quality is yet another factor that influences your property’s value appreciation. Well-planned and well-maintained homes are easily purchased by investors at higher prices.
Local demand and supply
The success of any market depends on the demand and supply methodologies. If the property demand in an area is higher, it will have a direct influence on the appreciation value. And it will show an upward move. An area with no demand might see a lower price appreciation for a property.
Advantages of apartment value appreciation
Encourages long-term investments:
When a property value increases over time, it attracts investors to invest in residential apartments in a particular area.
Creates immovable assets:
Increased value of a property creates immovable wealth and assets.
Net worth increase:
Property value appreciation leads to an increase in a person’s net worth.
Hold until the value rises:
You can purchase an apartment at a low cost today and sell it for increased prices in future. Until then you can hold it and wait for the value to rise.
Conclusion
In real estate, apartment value appreciation happens gradually. That’s the reason, people of India likes to invest in real estate more than anything else. The value appreciation of a property depends on various factors, including government policies, infrastructure development, market dynamics, and government policies. Whenever you buy a property, ensure to consider its value appreciation over time before making a final decision.
