While planning to buy, sell or rent a property, did it ever occur to you as to why different real estate market differ from one another?
While comparing different housing schemes and trends, even though two localities might be mere miles apart, the real estate markets may seldom be the same.
If one starts to compare a real estate market, they may appear to be drastically different from one another even though they may be located only a few miles away or cities apart. However, the main question is that what exactly makes real estate markets to be different?
There could be various parameters that contribute to the trends in the real estate market to differ.
To help you understand the real estate market better, and why does it differ, instead of hiring an agent, Graana.com fills in the need to assist you with your real estate needs. A piece to help you give a better understanding to find out what makes real estate markets different. So, for everyone who might be buying, selling or renting property, heads up!
Distinctive features of a House
With the real estate market expanding day by day, its global market goes up to $280.6 trillion. One can easily observe several housing projects being launched or introduced in the market. Each comes with a promise of providing state of the art facilities and facilities nearby that are accessible and sort out the life of the residents by making life easier and simpler. It is certain that different markets offer different popular and necessary amenities.
Every real estate market today offers a different style of home, with distinctive features and designs. A vicinity may offer a contemporary-styled architecture, with a sense of sustainability. An aesthetical layout and an innovative design flexible to cater to the family needs, such architecture are meant to be noticed and appreciated. The other might offer a minimalistic style house, which caters to simplify in terms of forms and function. Some play out on the lines of modern architecture, whereas others offer Spanish-styled homes. Every real estate market offers something different as they want to bring something new to the table.
Depending on the market, what a buyer looks for can vary pretty significantly because of the numerous options available. Undoubtedly, the style, age, amenities, or features of a home is one factor that adds to the real estate markets being different.
With the changing trends, one vicinity may have basements and the other may not. Homes may have central air-conditioning or central heating system, whereas others may not have these features and instead have acreage.
Such features and styles cause the trends to vary, and some may cause a drastic difference between real estate markets.
The average age of homes also plays an important role in deciding the real estate trends, as the difference in trends can be quite drastic between different real estate markets. The number of newly constructed homes being built in some localities may be higher than others.
Hence, such features and factor play an important role in the contrasting trends of different real estate markets.
Value of a home
Earlier, if someone had to analyse the market rate of any property, they had to personally visit either the locality or a local estate agent to get help and know more about the market trends. But the smartest property portal of Pakistan- Graana.com offers a smart area page – AIRA which makes it easier for anyone and everyone to get to know more about any area and search the facilities and services offered by each area.
However, due to significant varying factors present, one must always personally visit the area or an agent to determine the value of the houses in any neighbourhood. This helps in getting a better understanding of how and why the price trends of an area are set, along with different architectural styles and nearby amenities that add up to the values of houses to differ. This is an added factor as to why the real estate trends vary from area to area and in different housing schemes.
Nearby amenities available
Are there any schools or offices nearby where you live?
How far would you have to travel to access the hospital or markets?
In the case of travelling outside the cities, is motorway or other means to travel like the distance from the airport or train station and bus stops, too far?
These are some of the questions that almost everyone asks while buying, selling or renting a home and want to find the answer to. If all the necessary amenities like schools, hospitals or markets along with entertainment places are nearby and easily accessible, the vicinity is set to have a higher tax than those areas that may not entertain such facilities. This factor also adds up to the variations in trends in real estate markets.
Last but not least, the appreciation rate also plays a vital role in determining the real estate markets to differ from one another.
Many of you may be wondering about what exactly is an appreciation rate?
An appreciation rate is an increase in the value of an asset over time. The increase can occur due to various reasons, which may include increased demand or weakened supply. It may be a result of changes in inflation or interest rates over time.
So, to determine as to why real estate markets contrast from one another, the appreciation rate also plays an important role. Some real estate markets have an average appreciation rate of 3% while others could have an average appreciation rate of 1%. When converted in money, such rates convert to be worth hundreds of thousands of rupees or more. It all depends on how much potential a locality has to grow over a course of time.
So the next time you wonder why every real estate market is different may be miles apart or cities afar, these are some of the reasons.