Some Key Factors That Boost the Real Estate Market

Buying a house is a dream of every individual. Why? Because it gives you a sense of security. Every individual wants to lead a safe and secure life. Thus, a person works hard to give his/her family the life that they deserve. But, is it very easy to buy a house? No, it is not easy. Several factors determine when and how you can buy a property.

India is a nation with having huge population below the poverty level. They don’t get to eat properly every day. Getting themselves educated is a daydream! Do you think they can buy a good house? “It’s something too much!”, they would say.

Getting bread twice daily is something all they want. The targets set by Sustainable and Millennium Development Goals are yet to be materialized on the entire India.

A Further Discussion

Well, you see that some factors determine the growth of the real estate market. Let’s see some of them.

1. The Economic Condition

One of the major factors that affect the growth of the real estate market is the economy. By now it is very clear that the economy of the entire nation largely determines the growth of the real estate market. If a person can’t afford to have quality food, he/she can’t even think of building a house. Further, if there is inflation (a rise in the price of goods and services), then the market may get down for a certain period.

2. The Government Policies and Schemes

Looking at the condition of the people, the government of India has brought forward certain schemes like PMAY (Pradhan Mantri Awas Yojana) to ensure that people can have affordable houses to live in. Thus, when such schemes are implemented by the government, there is a boost in the real estate market. Why? Because a lot of houses are being during that time. Naturally, there is growth in the real estate sector.

3. Rate of Interest Given by the Banks

As we have already discussed that the economic condition of a large section of the people of India is below the poverty level, thus, the people tend to rely on home loans for buying or constructing a house. People prefer to go to those banks or financial institutions that provide their loans at a low rate of interest. Why will you go to a bank that gives you a loan at 9 % when another bank gives you the same amount at 7 % per annum?

Also read:

What Are the Reasons for Low Home Loan Interest Rates?

4. Population

Population number and characteristics influence the real estate market to a great extent by shaping its demand. The more the number of people, the more is the demand for houses or any kind of shelter. Besides, the age, sex ratio, etc. of the population also influence the demand for real estate properties. For instance, if you have a family of 10 members, you will have to construct more rooms. Again, people tend to shift to a new place after marriage. All these helps boost the real estate market a lot.

Conclusion

Well, I have explained a few factors that have a direct influence on the real estate market. Nevertheless, there might be other reasons also. For example, a sudden outburst of disease can affect the real estate market. We have already seen the effect of Covid 19 on everything!

Alright, this is all for today. We will meet soon with a new article. Till then keep sharing this blog on all social media platforms. Do not forget to mail your queries at info@roodland.com. We will revert within 48 hrs!

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