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Factors That Escalate Property Prices – RealtyMyths

property prices escalate RealtyMyths

by Anushree Ghosh

Understanding the valuation of Properties

Real estate continues to attract investments irrespective of the slow growth rate. Introduction of RERA and GST had put a dent in the system but it managed to survive and the momentum is regained. The market evaluation of the real estate properties depends on various elements such as the purchasing power of buyers, the economic condition of the country, stock prices, and interest rates.

Investors should do a thorough analysis before making an investment to get better returns:

Demand and Supply:

Demand and supply are inversely related. If the number of houses that are available for sale decreases, then the pricing increases. If the population of a certain locality increases then the competition for occupying the best places in that locality also increases, the increase in demand for a specific location increases its price.


The proximity of better infrastructural facilities near the house also affects the valuation. Availability of public transport, malls, schools, hospitals, the airport in the vicinity of the property also escalates the price of the property. If the government announces the construction of a new infrastructural project, then we can safely assume that it will generate new jobs and boost the economy of the local community. There are direct and indirect benefits to the society— more businesses, increased disposable income and improved infrastructure. The hope of a better lifestyle attracts people from rural and urban domains towards the township. The potential buyers also foresee it as an opportunity to make the investment before the prices become too high.


The buyers could ask the developers to upgrade a few things in the house, in accordance with their personal needs— a modular kitchen, extra wardrobe, plastic paints, flooring or upgraded doors and windows. This could further lead in the increase in the overall cost of the house. The kind of raw materials used in the construction process also plays a vital role when the final evaluation is done—as better the materials used, better would be the life of the house. The other physical features that are considered are roof covering, the height of the ceiling, the technology used for waterproofing, etc.

Interest rates:

Low-interest rates encourage the potential buyers to invest in a property. Since it has become an easy option, we see a lot of people opting for the same; as a result, the increase in demand increases the valuation of the properties. Government bodies strategically control the interest rates to monitor and stabilise the economy

Economic Growth:

Better economic growth means more disposable income for the people, therefore this would lead to an increase in demand and prices.

Spending on a property is a decision that couldn’t be taken only on the availability of finances but one has to thoroughly analyse the potential of that property. Buyers should study the trend and should not take the final decision based on the first impression.

Anushree is a versatile writer, theater actress with an immense passion for any form of art. Her blogs will take you through the different horizons of infracultural stories

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