Real Estate Market Data Points
Unfortunately, most people spend more time on choosing a home or a builder based on a brand value instead of evaluating the local market data and this can result in costly mistakes.
Take time to follow and understand a few real estate market data points in your city to make an informed decision when buying a home.
Here are a few market data points to watch out for;
Local Economy: Cities that depend on one or two industries are subject to experience drastic corrections or changes based on the national economy. The risk is higher if few units of the industry wind up the business. Bangalore is a hub for IT and Apparel company operations, a person with export business expertise may not find too many opportunities in Bangalore when compared to Mumbai or Chennai. If you are an IT expert, it definitely makes sense to invest in Bangalore.
Population: A nation or city's growth primarily depends on the number of expats moving in. Local population cannot grow a city drastically. This is one of the primary reasons why Bangalore has grown out of proportion and analysts haven't been able to predict the growth. Keep an eye on people moving in different suburbs of the city. It doesn't make sense investing 1 crore for a home in Mysore where employment opportunities are less when compared to Bangalore.
Development: Having a ring road next door doesn't mean development. Most buyers fall into this trap as builders get cheap land and market homes 'near ring road', '15 minutes from airport'. For a property to appreciate, you'd need good employment development. Take an example of Whitefield or ORR when compared to Budigere Cross or KR Puram.
Inflation: Many of us would have just watched or read the number on a newspaper. Inflation has a direct impact on the interest rates you pay for financing home or cars. High inflation gets higher interest rates.
Statistics: Keep an eye on market data statistics like periodical office occupancy rates, home absorption rates, Vacant home rates in the city. Bangalorenest.com does update this in the real estate news column, this can also be found in the business page section of leading newspapers.
Take time to research real estate market data in your area before making your final decision in order to assure your financial health and lifestyle are the best possible.