Buying an Apartment Wisely

Factors Affecting The Market Value of a Flat

Factors which affect the values of the land and the building also affect the value of a flat. Other factors are as follows :

Locality and the Class of Prospective Buyers

The reproduction cost of a flat is nearly the same in any locality of a city. Yet, the high demand for flats in decent localities with high income group neighbours pushes up the market values of flats. The component of land value is a small price to pay.

Type of Development

Buying a flat for use involves the commitment to cooperative living. The economic and the ethnic background of the buyers, their lifestyles and requirements are defined. Then, it is easy to compare the requirements with the specifications of the flat, the building and amenities including open space and recreational facilities.

Area of the Flat, Common area and Floor area Ratio

Maximum benefit to the buyer is from the provision within the boundary of the flat. The area of a flat depends on the class of the prospective buyer. Common areas and services are available to the buyer as an undivided share. There is an optimum proportion of the common area to the area of a flat for each class of buyers

Location and Orientation of a Flat

These have only marginal effects on the prices. Flats with better location and orientation get sold earlier. A developer studies the market and evolves an equitable formula for the adjustment of the prices. It is best to ascertain these details from the developers.

Common Amenities and the Level of Satisfaction

The value of a flat is greatly affected by the availability of open space and common amenities. Better amenities cost less to the developer, but greatly enhance the market values of the flats.