Reasons Why the Value of a Property may have Decreased
When buying a new property, you should be cautious. Analyze the process, since there are factors that decrease the value of a house or piece of land. In a real estate purchase and sale negotiation, it is advisable to have professional advice. Since many variables influence the time to increase or decrease the value of a property.
Here are a few factors that can harm the value of a property:
Location of the Property
It not only refers to the place or neighborhood where it is located, but it also has to do with its position in the master plan of the housing society. The better urban development the sector has the better value your home will be.
Regarding the location, you should know that the plots that are on the corners are usually better valued than those that are not, not only because they can have more access, but also because they have two fronts, facilitating the access.
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Development in the Area
The development not only refers to the amenities available in that area. If there is no water or gas or proper road connectivity, this decreases the price of the property. Many housing projects promise various features when they launch the project but when they start developing, the slow pace and poor quality of development in the area decrease the value of individual properties.
Lack of Public Services
Imagine everything you could find around the area where that property is located, surely there are many access roads, shopping centers, fashion stores, banks, public transport, and even parks.
All the urbanization around your property also affects the price, having everything close by adds value that is worth much more than you can imagine. Like hospitals, schools, and shopping centers, they can influence the price ad absence of which decrease value.
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Overall Economic Recession
The economic conditions of the country also affect property prices. If the economic conditions are good and people have more buying power then the demand for new properties also increases.
However, in recession and rising inflation the demand decreases which also affects the prices of new market options as well as old properties. In such conditions, property investors have to wait for the times when market conditions get better.
Level of Supply and Demand
It is an economic rule that the price of a property starts decreasing if there are better options available in the market. In areas that are populated where there are fewer plots left to sell the price automatically goes up.
However, if there are multiple options available in that area, the buyers become more inclined to a housing society that has a better reputation, fast development, more market potential, and less attractive properties around the decrease in value.
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Prospects
If the area in which your property is located has a promising future, its value will likely increase. The changes that may happen in the future near the location of the property also value it; If a shopping center or a hospital is going to be built a few blocks away, that means that the economy of the area is going to grow and this favors the increase in value of your property.
Conclusion
You cannot change the location of your home or control the economic development of the area, much less how the market fluctuates in supply and demand. Still, there are factors that you can consider beforehand.
When buying a new property, it is necessary to consider the factors that can decrease the value. Although there may be some external factors that affect it, control gets out of hand. But, internal factors can be managed and add value to the property.
If you are interested in buying property for profit, consider taking advice from experts of Manahil Estate. You can call us at 0345-5222253
