Key Factor that Influence Market
Here are some of the key factors that influence market of plots in Pakistan
Read Time: 4 mins
If you are going to buy or sell a plot then before heading to the property market, you should have some background knowledge about the factors that affect plot prices in Pakistan and might be boosting the market price value of a plot that you are investing in or are selling.
We know that the value of a plot is not intrinsically based on mere the buyer’s market and that what might be appalling to you might be appealing to another. For example, some buyers keep in mind factors like the location that includes the availability of public transports, school placements, commercial areas, and lands. On the other side, some pay attention to the condition and size of the property under consideration. Whatever might be the demand, the seller should always keep in mind to make a point that moves in the direction of highlighting essential features that play a role in making the property more prominent among the rest in the market.
In a line of the ideas that there are some considerations for selling your property for its highest value, it is time that we discuss some crucial factors that can positively impact the plot value.
Important Factors That Affect The Plot Values In Pakistan
There are a number of reasons that play a part when it comes to investing in a property, and also an exclusive list of many factors that affect the prices of the plots in Pakistan that includes only the most important ones. These factors include the availability of renowned schools that are nearby, preventative facilities, and commercial markets, which is everything that can have a drastic effect on the price of your plot.
There is no need for you to feel confused as we have done the tough work for your ease by sorting out a comprehensive list that mentions all factors that affect the property values in Pakistan, so you can make a wise decision before financially investing in anything. These factors include:
- Location and topography
- Floor Space Ratio
- Usage of the land
- Local real estate market values
- Basic and luxury facilities
Location And Topography
The geography of the property is the most essential key factor that impacts the value of the plot not only in our country but all over the world. It is not just about the development in that designated area. So, to find out if the location is ideal for getting land or not and understanding the locations and topography better, we have disintegrated it into three basic determinants: physical characteristics, the region types, and the land nature.
To start with the physical characteristics associated with it, we must acknowledge the fact that every location has its own uniqueness. For example, if you are going to buy land in a crowded area on a corner location then it would require a premium in comparison to other locations. Similarly, buying a plot of the same size in the boundary areas of a city instead of the heart of the metropolitan area will certainly save you a lot of money.
Likewise, the characteristics of the land also play a critical role in finding out if the value of the plot after the characteristics and geographical location that implies that getting a residential plot will be very affordable for you rather than getting a commercial plot if you consider the use of land for future. For example, if you are getting a plot that is secured for any kind of commercial use, then there is no way that you can build a commercial plaza on it and use it for the generation of additional revenue. The maximum you can do is rent out a portion of the property or sell some part of it or the whole property for profit.
There are many factors revolving around topography that should be taken into consideration as well, this includes the average temperature of the area, the presence of gardens and groundwater in it.
Flood Area Ratio
It is also called as Floor Space Index, FSI, and is one of the key players that have an impact on the price of the property. We explain to you a simple formula that will help you get more association with the index or ratio. The size of the property area and the width of the interconnected roads decide the ratio or the index. In simpler words, it means how much are present in a plot can be utilized for constructing and developing purposes. This in returns impacts the value of the plot. It is obvious that if the authorities are planning to expand to increase the space usable for construction, then it would positively be influencing the market price of the plot in a positive manner.
Usage of The Land
Many a time, two similar plots can be hard to distinguish and yet have entirely conflicting values. Consider the profit of buying land that you always dreamed of which is located far from the city and is ideally suited for agricultural purposes. Now, consider the ordeal of selling that piece of land just when urbanization takes place in the area and potential customers are searching for some commercial or residential plots to invest in that would increase its market value drastically.
Although the land has a lot of potential to increase even more value as compared to a plot having no attraction like greenery, the plots reserved for agricultural purposes cannot be used for residential purposes. Many authorities have limitations on the types of construction that could be done on the plot. Therefore, the value of the plot is highly dependent on the allowed usage of the land. Looking for the best possible usage for your land is a critical step towards elevating the future value of the plot. That is the reason why experts always suggest getting a consultation with real estate experts before they invest in a plot.
Local Real Estate Market Values
Having a deep survey of the real estate market gives a better knowledge of what the buyers and investors have an interest in. in addition, it aids the property seekers better acknowledge the factors that influence the property market and the opportunities available for securing investment. Factors that highly affect the real estate shifts also include government policies, the economic condition of the region, and also demographics which is a study about the population.
The overall performance of the market can also be figured out by a theory of economics which is Supply & Demand, which means the total plots getting sold and their demand within a specific period. If the demands are more than the supply, then the prices are elevated and vice versa. In addition to these two extremes, there might be some interesting variations that could pop up in the market.