Real estate market is a fickle changeable market as there are numerous factors that affect the property value by increasing and decreasing.
Increasing the demand and decreasing the supply in real estate market makes the property value increase and vice versa. Also, the supply and demand law got affected by many economic and political factors.
The availability of services such as schools, universities, malls, entertainment methods, etc in a specific region affects the property value as the demand for such properties increases thus, the property value increases.
Low economic conditions no doubt affects the real estate market and property value, as it causes a recession. However, in the case of a thriving economic condition and a stability of citizens income, the property value increase due to the stability of the citizens’ financial situations, what makes them able to buy or rent properties.
The good property status affects its value by increasing. For instance, if you compared a good property with a similar one –which might be bigger in space- but it’s not as good as the first one, you will find that the first property value is higher than the other one.
The political condition directly affects the economic condition what naturally affects the property value. So, the downturn of political conditions causes an instability in the real estate market that’s why you see an increase in the properties prices in some regions, while prices fall in the other regions.
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