With real estate becoming a preferred choice for investing, most individuals are turning towards real estate market to expect profitable returns in future. In this ever changing and rapidly saturating market, possessing a land is nothing less than owning a goldmine. Even though real estate investment takes some time before it begins to offer high return on investment, property investment offers better returns when compared to any other investment. However, it is vital to know that there are various factors that influence the price of land. In addition to location and surroundings, below mentioned are other factors that decide upon the market value of a property.
The stability of the ground where an office or house is to be constructed someday plays a major role in influencing the cost of real estate. Rocky or unstable ground is considered to be unsuitable for constructing a structure as such area is believed to be inappropriate for holding a building. Moreover, as it is a bit hard to dig into such ground to fetch water, you might face the hitch of extracting water and obtaining sufficient water supply. As a result, the land sells at a lower price. On the contrary, if the earth is conductive to construction, the property surely will sell at a higher price. Therefore, if you are planning to purchase a property that offers stability and sufficient water supply, be prepared to spend more than what you would have to pay for an unstable and rocky land.
Infrastructure is probably one of the most important aspects of investing in real estate. People prefer to reside in an area that has necessary civic infrastructure like water supply, proper drainage system, constant electricity and sufficient number of streetlights. Moreover, with people becoming tech-savvy, having mobile coverage also become a necessity now. Those selling an asset with missing modern day necessity get lower price for their sale. Conversely, land that offers superior infrastructure with all modern day requirements is priced high in market. Therefore, the better the infrastructure, the higher is the cost of the property.
Floor Space Index (FSI) or Floor Area Ratio (FAR), which is set by the local authorities, is another vital parameter to influence the price of the land. The ratio informs you about the available area that you have for constructing the building. The zoning code of your area imposes restrictions on this ratio to justify other essential parameters such as the width of the road and setbacks. You have more area for constructing your building if the floor area ratio is more. However, the price of the land would also be high in such case. It means, market value of property and floor area ratio are directly related to each other.
Industrial development controls the price of real estate. If the city is witnessing rapid growth in terms of development of Information technology sector, the demand of land and property price increases, especially if real estate is close to where the development is taking place. Ensure to consider all these factors if you want to make a successful investment.
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Growing popularity of Mohali has attracted investors in large number. People are looking forward to acquire Property Mohali. In the near future, it is bound to become famous as IT hub and thus attract youngsters. So make an investment today to reap great benefits in the future. Get in touch with our experts at www.propertyatmohali.com/
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