Since the pandemic, Mohali real estate has advanced significantly, with new and big projects being developed in the city at a phenomenal rate; Despite that, many homeowners are anxious about investing in property. In this article, we have tried to predict the future of Mohali real estate as per the current market trends and past performance. So, keep reading the article to know whether you should invest in a commercial or residential property in Mohali.
1. Continued development
Mohali real estate market has been extensively growing over the past decades, and experts say this trend will continue. This is because of the city’s strategic location, good infrastructure and growing economy.
2. Increasing demand for affordable housing
With the increasing government initiatives on providing affordable housing, developers have focused on developing affordable residential and commercial properties in Mohali. All this will increase the demand for housing in the future.
3. Incorporation of sustainability
There has been increasing awareness of sustainability and eco-friendliness among real estate developers, due to which they are incorporating energy-efficient construction practices. Therefore, they can meet the rising demand for a sustainable way of life.
4. Technology Adoption
In an attempt to improve the home buying experience and real estate construction practices, many developers have started integrating high-end technologies such as virtual reality or artificial intelligence, which will increase the demand for homes and commercial property in the future.
Factors that affect the real estate market
We have above predicted the future of the real estate market according to the current market trends. But you should also know some vital factors that affect the real estate market. We have below mentioned a few factors that can help you take the right investment decision at the right time.
1. Interest rates
Interest rates significantly impact the real estate market, so if you are looking to buy a house, don’t forget to check the interest rates. Lower interest rates make it easy for people to obtain mortgages, which increases the demand for homes. And the rise in demand drives up the prices of houses and properties. Similarly, high-interest rates increase borrowing costs, meaning fewer people can afford to buy a home. All this decreases the demand for housing, which can drive down house prices. And not only the demand but high-interest rates also affect the supply. And this is because it makes the development of a home more expensive for developers.
2. Economic conditions
Economic factors such as employment rate, income level and inflation hugely impact the real estate market. With a high employment rate, income becomes stable, which means people are more likely to invest in real estate. Conversely, a low employment rate leads to unstable income, which makes people less likely to buy a home or a residential property for sale in Mohali.
Inflation increases house prices because the cost of construction increases with it. Inflation also decreases buyers’ purchasing power and reduces the value of money, which eventually increases home prices.
3. Government policies and strategies
Tax deductions, zoning laws, tax policies and subsidies are some ways through which the government boosts the real estate sector. So, learn about government policies and strategies to determine the current demand and supply of housing and identify any false claims.
Note:- Government policies also affect the cost of owning and maintaining a property.
Demography is connected to real estate as it determines the characteristics of a population, such as age, income, race, gender, education, migration pattern, etc. For example, younger people prefer apartments, while older people may require a large home with a garden. In addition, migration patterns and population also affect the demand for housing in a place. For example, if there is a large influx of people in a region, the price of houses and properties in that area will increase. Similarly, if an area witness decline in population, there will be an increase in the supply of houses which will decrease their value. Thus, research a region’s demographics before spending your hard-earned money on a property there.
The bottom line
As predicted, the Mohali real estate market is going to grow in the coming years. But also keep in mind the above factors to make an informed decision. Do market research and, if required, get in touch with professionals before making a real estate investment.