The real estate sector is one of the markets that drive economies across the world. It is an industry that is among the top revenue earners for many countries across the world, and this means that it is also one of the biggest employment creating sectors. However, just like any other sector, there are various factors that drive the real estate market, but today, we are going to look at the four most important of all the factors that affect real estate.
The government is tasked with among other things formulation of policies that govern, or control the way business is done, in each and every sector.
When it comes to the real estate sector, it is the government that formulates policies and legislation on the various taxes, deductions and subsidies given by government affecting the price of land or property sold by real estate companies.
The political temperature at any given time also determines how positive or negative business will be affected in real estate.
2. Population (Demographics)
Property is bought by people and the more people in a certain area, the higher the demand for land or property. This majorly affects the price because usually when the demand is high, the price tends to go higher. The location also matters a lot, when it comes to the population.
A good and constant example of growing towns would be Malaa town along Kangundo Road. Malaa has an upward growth rate indicating that demand for land in the area is quite high.
Another area that has seen steady and tremendous growth would be the areas along the Eastern bypass. Quite a number of estates are coming up in this area guaranteeing the appreciation of the land. Hurry and grab your parcel from Fanaka who has a 4% discount for all-cash buyers.
3. Interest rates
This is another factor that greatly affects the real estate market in that, when the interest rates are lower, people are likely to buy more property, compared to when the interest rates are higher.
This is also likely to increase the demand for property, and what it means is more sales for real estate companies.
4. The economy
When the economy of a country is unstable, one of the most affected sectors is the real estate sector. Why you may ask? Well, this is simply because an unstable economy means no employment and with no employment comes less expenditure by the citizens. When the economy is stable, things become good for the real estate sector.
When people have stable jobs, they are more likely to invest as compared to when they have no jobs at all.
That being said, as our economy stabilizes, I would like to encourage each and every person reading this to make a smart investment in land with a trusted land selling company, you can never go wrong.