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1. 6 Factors That Impact Property Appreciation Commercial real estate is regarded as a lucrative and promising financial investment option. Investors look forward to a steady income if it is a rental property or a higher market value when they eventually sell the real estate. However, several factors contribute to property price appreciation, and it's essential to watch out for them to gain profitable yields from your investment. Price appreciation in real estate investment means a surge in the property's value over a certain period. When you work out your return on investment, price appreciation has a vital role. Some of the most pertinent factors impacting property price appreciation are listed below: 1. Location It is pertinent to see if the property location is safe, well maintained, and well connected by public transport. Its proximity to schools, colleges, shopping malls, etc., also contributes to property price appreciation. Very few have an eye for identifying areas with high potential to develop at a decent pace in the years to come. Investment in a mediocre locality can result in lower returns than your opportunity cost, and it also affects the liquidity of your commercial real estate investment. 2. Quality of Development Real estate investment can beat inflation if done with due diligence. But this could go drastically wrong if you fail to make a quality investment. Quality investment here refers to the project's development quality, i.e., quality of infrastructure and amenities.

2. Imagine that a project lacks ample parking space. Now every occupant would think twice before buying a property there. Similarly, amenities such as garden space, clubhouse, swimming pool, transportation, etc., are some other influencing amenities for a residential property. Development quality can single-handedly dominate the price appreciation by a considerable margin. 3. Developer's Reputation A developer's reputation directly relates to the investor's peace of mind. Check if the developer has delivered the units on time in the past. Also, look for the sanctions that the developer is supposed to take from various domestic governmental authorities. An established developer is known for more than just brick and mortar. When investing, go for commercial real estate known for its brand value and its ability to appreciate the prices greatly by the time it is ready to move in. You can check the price appreciation of the developer's previous projects before investing. 4. Development for the Future A project with proposed infrastructure or nearby developments will see more footfall from interested buyers. Developments such as a proposed expressway, airport, or metro station boost connectivity. Other scheduled developments, such as the setting up a shopping mall or even a bridge, can shoot up the property prices at an exponential run rate. 5. Smart Upgrades Integrating smart technologies is another factor that could play a key role in property appreciation. Properties equipped with upgrades such as tankless water heaters, automatic ventilation fans, radiant heat flooring, etc., attract more buyers and

3. investors. Other features such as a rich layout and size designs, modernly styled interiors and luxury amenities, etc., are all icing on the cake. Properties receiving ample sunlight, Vastu-compliant homes and other innovative solutions offered by a developer are highly desirable as a real estate investment. 6. Market Conditions Macro-economic conditions play a vital role in monitoring commercial real estate investment prices. High inflation can require a developer to spend more on raw materials and other inputs. However, the market value could continue to remain the same. Other factors such as purchasing power parity, unemployment rate, GDP growth rate, cost of borrowing, population increase, etc., can also be vital. Conclusion Many investors commit their capital to commercial real estate investment due to its appealing price appreciation. However, anticipating the potential challenges in traditional real estate investment is essential. It has a high entry barrier investment, requiring massive money. It also has liquidity issues since it is not always easy to find a buyer and fetch the market price. Other challenges, such as longer holding periods, performance tracking, etc., cannot be ignored. The need to overcome these issues has led to the emergence of blockchain in the real estate sector.