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Five key factors that determine the trends in Real Estate

There are no two opinions about the fact that the Real Estate Sector does constitute a major proportion of wealth for Indians. Central state defines the volatile aspect of people's wealth, people with business acumen 10th to invest their money in idhar residential or commercial properties as per their Wealth Management strategy. Moreover it is also interesting to underline that after the pandemic, people have begun to be more dependent on alternate sources of income. Under such backdrops, investing in pre leased properties has become a reliable step to be taken by many investors. It will be therefore insightful to observe the factors that define the demand of popularity of a particular kind of property at a particular point of time.

1. Demographics

Simply put, demographics can be defined as the composition of a particular place on account of gender, age, caste, class and creed amongst multiple other factors. Although one might not be able to see a direct connection between demography and real estate properties, on deeper investigation, it can be deduced that people's social, political and sometimes even religious beliefs determine the kind of properties that could be more popular in one area as compared to other ones.

2. Economics

Needless to say, there is a direct connection between per capita income of a country and the kind of properties that people will be demonstrating interest in. In India itself, cities where people are well settled and financially more secure tend to invest more in commercial properties. In rural areas or underdeveloped regions, the industry of Real Estate is not yet as flourished and people depend on more conventional and hence slower modes to multiply their income.

3. Interest Rates

The whole point of investing money in the Real Estate sector is to increase the wealth and to raise the capital. Of this name the properties that will procure a higher rate of interest will be more preferred by people as compared to the properties that might be presently more promising, but still offer less interest. People who are experienced investors in the Real Estate Sector tend to look forward to long-term benefits.

4. Natural or Man made disaster

Immediately after any natural or man-made calamity approaches humanity, the priorities of people do take a dramatic shift. Rather than relying upon upcoming prospects, people tend to be more cautious towards investing their money in ways that could harbour good returns in the critical times. The rates of properties do decline, though temporarily, under such testing circumstances. And that's the time when the investors can find an opportunity to lock in good deals at desirable rates.

5. Foreign Investment

Last, but certainly not the least, the foreign investments also make a very huge impact on the nature of commitments people make in the sector. Nobody can deny the fact that the Indian currency Rupees is still quite weak as compared to the US dollars. While investing their money in the Real Estate sector hence, people like to keep up with the contemporary fluctuations in currency and do consider investing when money is comparatively strong in the market.


These are the five dominant factors that help define the trends in the Real Estate market. They must certainly be considered while taking any decisive step in the Real Estate Sector.