Unemployment rates affect Real Estate: Unemployment decreases economic growth. If there are more job opportunities in the real estate market, people can earn enough money and afford to buy a house or any other type of property. Real Estate Interest rates. If the interest charged on a property or housing loan is higher which means monthly mortgage repayment is also higher. Therefore, when the interest rates are higher, the less demand for real estate is observed. Only a few people can afford that. On the other hand, an affordable interest rate which means lower interest rate creates a good demand for the real estate industry. Government factors Government policies Government keeps changing policies. For instance, the policy which allows non-residents to buy the house, the government starts offering subsidies to needy people. These policies help increase the demand for real estate. Administration. The property which is near to the administration area where there are many facilities available and a fully developed area always have higher demand. Government servants/employees are attracted to buy a house near this type of area. The government also provides quarters to the government employees. Social Factors Family size If the size of the family is big, people would be willing to buy a big house. Increasing crime rate. If there is an increase in the crime rate in any particular area, people would not feel comfortable buying a property in those areas which decreases the demand of those areas. Population growth. In any particular area, if there is an increase in population which leads to an increase in the demand for property in that area or city. Here, we discussed the main factors which affect most in changing the price of real estate. An investor must have to do proper research and check all the criteria. From these factors, you can get an idea of the property value.
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