When you decide to buy a new real estate, one of the first questions that will come to your mind after knowing the prices is how a real estate is priced? And why some districts are selected to have higher prices than others? More importantly, why the prices of real estate keep rising always?
To know the answer of these questions, you need to know the factors affecting the prices of real estate.
The prices of real estate are affected by many factors that include the direction of the market, the season, the condition of the real estate and the demand on it. To buy a real estate at the best price you need to know all the factors that affect its price.
Supply and demand
The prices of real estate, especially apartments, are always affected by supply and demand. So when the demand is high and the number of real estates available is low, the prices are raised as the seller is in power position and can determine the price he wants, and vice versa, when the demand on a real estate decrease and this number increases then the prices fall down.
High supply and low demand = Lower prices
Low supply and high demand = Higher prices
Location and district
The location of a real estate is always one of the biggest factors that affect its price. The services around a real estate is also affecting its price, including the schools, commercial stores and streets that are paved or not.
For example: youth residences are always with prices lower than residential Towers with gardens and services.
Finding a real estate to buy: check apartments in Nasr City, New Cairo or 6th of October.
Condition of the real estate
The condition of the real estate is one of the biggest factors that affect the price of the real estate. The finishing of the unit and the used material in addition to the lightings affect its price as some are fully finished and some are half and some are without any finishing. The condition of the building also affect the prices of its units directly.
Direction of the market
The real estate market can direct suddenly towards the rise of the prices wherever the unit located as the prices rise at various rates. You can learn more about the pricing of your real estate through our cool Aqarmap tool.