While buying/selling or renting a property in the market, multiple elements can affect house prices. Most of the people look at other factors while picking a perfect house that is worth living.
Rents in Islamabad normally differentiate from sector to sector, and the reasons behind are its a capital with extensive town planning with precise streets/lane name and house numbering. There are multiple job opportunities in the Capital just a few kilometers away from your house, and surely that would be a plus point.
There are various features in play when it comes to investing in a plot, and even a complete list of factors affecting plot prices in Pakistan can only include the most significant ones. Elements such as the availability of commercial markets, schools nearby, and preventative facilities – to put it simply, even the smallest facility can make a huge difference in the price.
1. Location
The geographical location of the plot counts a lot when you are choosing whether to reside here or not. Most of the people favor living near to the facilities and amenities. The plot’s location matters quite a lot as if it is a corner plot, then it has more value than the one in the middle as it will have two gates. Furthermore, the plot with a green area in front of it would cost you more for the extra land than the house with opposite housing.
2. Amenities
Most people often tend to ignore amenities that are important if you are living with your family. It might include schools, grocery shops, hospitals, barbershops, or even a park. It is necessary to sort your priorities first when it comes to choosing a place to live. This would initially increase the price of the location when it comes to these amenities.
3. Neighborhood
A good neighborhood is an attraction to attract sellers/buyers or tenants. It gives a great impression of the area and people dwelling nearby. Neighbors are the people who make up a great reputation for the place, which helps build a good environment.
4. Commercial Area
Commercial areas are an indispensable part of living as it concerns colleges, schools, and workplace facilities. The value of the location will be high if an allotted land is near a commercial area. Living around these areas is quite easy, as numerous things are easily available within reach.
5. Area
The area of the land and the width of the connected road floor area ratio – which solely means how much area in a plot can be used for construction and development, critically affecting a plot’s value. It goes without saying that if the authorities plan to improve the space used for construction, it would surely impact and boost the plot’s market price.
6. Interest Rates
Interest rates affect the price of monthly mortgage payments. A period of high interest rates will raise the cost of mortgage payments and lower demand for purchasing a house. High-interest rates make renting comparatively more attractive compared to purchasing. Interest rates have a more significant effect if homeowners have large variable mortgages. For example, in the 90s, the sharp rise in interest rates caused a very steep fall in house prices because many homeowners could not afford the increase in interest rates.
7. Consumer Confidence
Confidence is essential for determining whether people want to take the risk of taking out a mortgage. In particular, expectations towards the housing market are quite important; if people fear house prices could fall, people will defer from purchasing the house.