The real estate market is considered one of the most profitable investments worldwide due to the continuous increase in the market value of real estate assets. Even in Pakistan, the real estate market is deemed as the quickest way to earn a profit.
However, it is not a walk in the park and there are many things that should be considered when making an investment. These things are key factors that influence the market value of real estate property. These factors are the location, condition, curb appeal, security, demand, and facilities of the property.
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It is common knowledge that properties in well-known or posh areas such as DHA are expensive as compared to residential properties located in other areas. Similarly, real estate property in the main city center is expensive in comparison to real estate property in the suburbs or outskirts of the city. This is due to the ease of access to facilities such as hospitals, schools, and commercial areas, entertainment centers, and so on.
Housing schemes such as DHA, Bahria Town, Model Town, and PECHS make for an ideal investment opportunity. This is because these housing societies not only have the best facilities available in Pakistan but also provide the residents with tight security and around-the-clock surveillance. If an investor purchases residential property in a less favored neighborhood, there are fewer chances of that property being sold at a high return rate.
The second factor that has a major influence on the market value of the property is the condition. A property that’s well maintained will fetch a higher market value as compared to a house that is in poor condition. Newly built houses always sell for a higher price and run-down homes fetch a lower market price. In order to increase the market value of old homes, it’s best to maintain them throughout the years because no new residents want to end up buying a house that constantly needs maintaining and repairing.
The poor condition of the house can also be used in the buyer’s Favour. If the property is old and in poor condition but is in a popular location, then the buyer can even negotiate their way to a lower price. Buyers can then use the remaining funds to fix the house and sell it or rent it at a higher price
The outward look of the house is the first thing that buyers notice and if the outside of the house does not look appealing then buyers are not interested in how the inside looks. If the house is well kept from the outside, there’s a higher chance that buyers will be attracted to it.
The curb appeal of the house can be uplifted by applying a fresh coat of paint on the outer walls and keeping the garden well kept. Planting flowers, installing garden lights, and keeping the grass trimmed add to the market value of the house. Other changes that can uplift the curb appeal include changing the window frames and the front gate if they’re too old and updating the porch tiles.
Lastly, when house hunting, buyers tend to look for properties that come with extra facilities such as pools, security cameras, spacious parking area, corner plots with extra land, and so on. These extra amenities not only increase the market value of the property but are also easier to sell because of how in-demand they are.
It is best to always invest in a house that has these extra facilities because they will fetch a high price in the market. Even if the house does not have a pool or extra land, installing cameras, electric fencing, or building a small room for security guards will increase the market value of the property.
When investing in residential property, it is best to always keep all these factors in mind to earn a good return profit. If these factors are not considered an investment id made in a haste, there is a possibility that the property will sell for a lower market value.
Muhammad Junaid is a CEO of VM Sol, senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in NextGen Marketing – Nova City. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.