Your property’s value is based on what the investors or buyers in the market are willing to pay for it, but every investor is different. For example, one person may weigh location and road situation over the condition and size of the property. So what causes the value of a property to rise and fall? From nearby facilities and road conditions to infrastructure projects, there are various factors that can influence property values.
Property investment can be nerve-wracking if you don’t have sufficient knowledge of how things work in the real estate business in Pakistan. To assist you in making the right real estate investment decision, we have outlined some of the key factors that drive the property values up or drag them down.
Read on to find out how you can check what your property is worth:
- Neighbouring Conditions & the Road Situation
The neighbourhood conditions typically affect the demand for a property. Houses on impasses are more desirable as they seem safer and are less thru-traffic. Neighbourhoods with families usually attract buyers who have children, whereas messy neighbours or nearby foreclosures can drag down the property value.
Similarly, houses located off high-traffic roads are usually a tougher sell as getting in and out of the driveway can be a struggle. Gravel roads and dirt are also viewed as negative as the mess they create can be stirred up for home exteriors and cars.
On the positive side, a property in close proximity to an interstate can give its value a boost as long as the traffic noise doesn’t enter the home’s interior and the road isn’t within view.
- Nearby Facilities & Amenities
Where is the property located? What’s nearby? There are certain things that any potential buyer will consider before investing in a property. You may picture your home as perfect since it’s near your office or your parent’s house, but that won’t probably be enough for people thinking about making an offer. They’ll be looking for:
- The proximity to healthcare centres and schools
- The proximity to highways, recreation centres, and shopping centres.
- Employment opportunities
The further away the above things are to your house, the more that will negatively affect its value.
- Future Development
You must pay attention to the developments happening near the area where you’re planning to invest. If there are any positive developments in the works, the property should be more desirable and its value may also rise. This will especially be true if those developments improve walkability. Any development plans for an upscale grocery store or school at walking distance from the location can give a nice boost to the property values in that area.
- The Usable Space & Size of the House
The size of your property is a very important factor that measures its market value. A bigger house will have a positive impact on its value. Roughly, the price of property can be estimated by multiplying the value per square foot with the total size of the house. Usable spaces of property can also affect the value of the property. These spaces include basements, garages and verandas. However, it is the liveable spaces that attract the potential buyers the most and can entice them to make an offer. So, the more the bedrooms and bathrooms your house has, the higher the value your house will have. This also means that renovating your rooms and ensuring they’re in the best condition can increase the value of your property.