Real Estate always appreciates in value, the longer the property exists the more valuable it becomes. There are factors that influence the appreciation of real estate, these factors affect how fast, slow and property will appreciate. These factors include:
- Location: The location of a property be it land or housing can really make the property highly valuable and appreciated. When considering the level of appreciation based on the location of a property, factors like the nearness of the property to other residential areas, nearness to industries, closeness to supermarkets, shopping malls, schools, hospitals, banks, and road networks are put into consideration. Real estate is more appreciated when situated in some location than other locations, for instance, a property in Victoria Island is more appreciated than a property at Ajegunle, both in Lagos State.
- Amenities: for a property to appreciate in value, especially a home, there should be amenities that make that particular property stand out. Amenities like swimming pool, security, water supply, stable power supply, children playground can help the appreciation of a property. This is what attract buyers to a property and thus can increase the value of the property.
- Physical state of the property: The physical appearance of a property especially houses can influence the appreciation. For instance, if a house has a beautiful design, layout and style, it easily attracts buyers/investors than a house that is not physically attractive, has bad design, layout and style.
- Economy: When it comes to the effects of economy on the value of real estate, it is a something that cannot be controlled be the investor or any party involved in the real estate business. Economic states of unemployment, low income earning, Low GDP can cause the real estate business to waver. A property can be well appreciated if the economy of the country is very favourable and have positive effects on the real estate market.
- Upgrades: Renovations and upgrades can help increase the value of a property. No matter how old a property is, if it’s always renovated as at when due and well maintained couple with being situated in a nice location, a buyer will prefer an ungraded property to one that’s not upgraded. A well maintained property will command a high value than a one that is abandoned and not maintained, even if they are in the same location and have the same amenities.
- Owner or Realtor’s reputation: A property can be well appreciated because of the reputation of who is selling the property or the real estate agency. This reputation is something that must have been built on trust and competence on the path of the seller or agency.