Rules
of thumb and systematic shortcuts often do not work when you are estimating a
buyer’s mentality. Human mind changes faster than it reaches a conclusion. So
situation specific factors though determine buying trends however are not
steadfast shortcuts. From a wider point of view there are four main factors
that determine buying behaviours:
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| Courtesy: net |
Demographics:
Data that explains the composition of a population such as race, gender, age, income,
population growth and migration patterns determine the value of properties. For
instance, people these days prefer living in the educated cities but want to
avoid the daily hustle bustles of a busy city. Here come the demographic
factors. Even though people are educated and unbiased, yet cities with low capital
income and high female foeticide rates are a cause for rejection for many.
Interest
Rates: The current interest rates matter while determining realty prices
and so it comes into consideration as regards buyer’s behaviours towards residential flat purchases. As the
interest rate fall, the mortgage cost decreases, which escalates real estate
demands, which in turn pushes the prices up eventually. Not to mention the
overall health of an economy is another key factor as it is a known fact that a
nation’s GDP, employment rates, prices of goods and services are important
factors in deciding any price structure.
Government
Policies: Legal factors, legislation and political situations usurp even a
very favourable market. So factors like tax credits, subsidies, incentives, and
deductions play a key role in determining property demands. Research has proved
that tax incentive is alone sufficient to cause a sizeable increase in property
demands. Although temporary yet it is a demand that triggers experts to
consider tax incentives an important factor.
Consumer
Confidence: Another driving factor that is totally inclined towards the
buyer is their desire or confidence in buying properties. Whether they want to
take risks in mortgaging their properties or owning a house for resale/rent-out
will affect demand. Fearing that prices may fall, many take backward steps when
the market is down.
Hyderabad is a leading city for investment in property and especially high gain in residential property and I am Niharika, to give you updates on recent property trends in Hyderabad Market
