The real estate industry is a growing industry in terms of expansion and price appreciation. It is the most valued market when compared with other industries. The land price keeps on appreciating with time adding value to the owner. Nevertheless people are interested in buying flats and apartments but the investments made in land will and have always given better returns. The investment made in land in the realty sector has given high profits and better ROI in the long run. To buy a land in a city which is facing scarcity of space can be a satisfying experience. This will not only fetch you unique price hike but will also reevaluate your realty price as the prices in such areas are sky- rocketing.
Cities like Bangalore, Chennai Delhi, Hyderabad, Kolkata and Pune are in a trend of buying apartments. Where apartment has been a major choice of people here there are some dedicated and interested in buying land and plots to craft their own dream house.
A lot of factors are involved which determine the price of these plots. The article outlines some of the driving factors that are responsible for the price respectively.
Location of the Plot
The location of the plot forms one of the prime factors in determining the land price. Before buying a land one should always keep into account the nearness of the land from the main road or any known landmark and its accessibility.
The closer the land to such areas the higher is the value of the land. A thickly populated location is preferred over a thinly populated one with definitely a higher price tag.
Land Usage
The land value is exuberantly set according to the type of use the land is put to, for example the price of a land for commercial purpose might differ from a land meant for residential or agricultural use. In case of the land is kept vacant for a while and then its put to use to build an Institution, office or a commercial complex the worth of the land automatically enhances.
Comforts, services and amenities
Infrastructural facilities developed by the urban bodies or the developments authorities like roads, electricity, power, sanitation, street lights, transportations, water supply and high ways etc. are liable to increase the value of the land or plot.
Condition and surroundings
It is a known fact that the land which looks more appealing is comparatively of a higher value. A fertile land will be priced higher as compared to the worn out land. A typical forest land will be expensive when compared to a clear cut forest land. Plots with no unique feature will be prices little less. The surroundings of the plot also add on to the value. The piece of land which is surrounded by greenery and a beautiful landscape is will be priced higher in terms of price and will be valued much. Similarly if the land is situated near the industrial area the prices will be a little low in cost.
Interest rate
The interest rate also affects the land and plot price. In case the bank announces the reduction in the interest rate there will be a drastic increase in the demand of loan by the people who are willing to invest in land or a plot. This rising demand will therefore increase the value of the plot significantly. This relationship between the interest rate and the land price is inversely proportionate and can result vice versa in different circumstances.
The game of speculations
Land value and price is also decided upon the speculations made, usually in situation when demand is higher than the supply the prices of the land tend to increase. The area rapidly growing in terms urban development results in population migration at a larger scale adding on to the price hike of the land. The higher the demand will always result in appreciated price of the land or a plot.
Floor space index
This makes an influential impact on the land price the floor area ratio is restricted by the zoning code. The planning authority increases the floor area ratio which results in the doubling of the land price.
To outline the meaning clearly the ratio of the floor is responsible for the land value. The owners do not contribute to such a scenario but are always benefited as the ratio of the lend increases.
Growth of service sectors
The rapid growth of the IT, ITES and the BPO sectors have resulted in huge demand for land leading to the massive increase in the price of the land and plots. A huge space id required for a multi-national company to set up a place for its operations. Thus, as a rising demand for space in the urban locations these MNC’s are willing to pay any hefty amount for the land.
The multinational companies require lot of space in the urban area to setup their operations. These companies are willing to purchase the property sites at higher value as their requirement is of utmost importance.
This article is published by TGS Layouts Bangalore. Visit TGS Layouts if you're looking buy plots / sites in Bangalore and its surrounding areas.
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