The real estate industry is always a scene of continuous upgrades and updates. Nothing remains constant for long periods here. The trends keep changing as the market is greatly influenced by the variations in consumer investment behaviour. There may be peak hikes and drastic falls in the industry market patterns within short durations. This makes the real estate industry interesting and risky at the same time.
Recently there has been a pattern of increasing prices as more people have been investing their money in buying property. Can you think of some reasons why the trend has been showing a steadily increasing growing curve? The other main reasons that satisfy the query of increasing prices have been mentioned below:
Higher Standards of Living
People have increased their standards of living as well as expectations of what a good life should look like. Most people prefer investing in a property that is convenient and complies to their standard of living. They require the comforts of a good life and enjoy their activities in a posh community. A certain category of people in the society enjoy the benefits of high income and this encourages them to invest more in real estate. Naturally, this tendency is attractive to sellers in the market and price rise.
Yet another trend that is seen in society now is the appearance of senior citizen apartments or retirement homes. Lots of wealthy people now plan and book retirement homes where they can spend their retirement life in peace. They do not have to depend on their children to take care of them as these homes provide high-quality facilities. There are so many villas in Bangalore that have been designed for this sole purpose. The standard of living is quite high in these areas and all modern amenities including hospitals are within the owner’s reach.
The Increasing number of NRI Investments
The prices in the real estate industry depend quite a lot on the investment of NRIs. Most people living abroad tend to buy property in their native place. It is much easier for them to invest in property as they can afford higher price ranges. When there are buyers to invest at higher prices, it is only natural that the builders and sellers increase their rates as well.
The increasing population is one factor that brings alarming changes in the market in all areas. More people have to provide for their families and hence the demand for property is always increasing. This automatically leads to an increase in selling prices. A quick search on Google is more than enough to show you the upcoming new villa projects in Bangalore. People are being forced to move to safer and more convenient neighbourhoods to provide the best for their future generations.
Other reasons which have led to an increase in the price rates are:
● Gravitation to city areas for better facilities
● Increased interest to reside in gated communities
● More income, more expenditure
● Increase in the number of people looking to rent out a home
Experts always explain the reasons with demand and supply relationships as the main cause of fluctuation. So as per that theory, the prices increase due to increasing demand for property. More buyers are coming onto the scene to purchase property as buying land is a solid investment.