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Real Estate Prices

Real estate business or the property business is the popular business as property prices are increasing time to time. If we talk about the reasons of the increase in property price then there are many reasons which impact on the real estate price. The main and most popular reason for the rise in prices of the property is to rise in price of fuel and other goods. This term is said to be inflation. When there is inflation in the country, then property or real estate business is the golden business as prices increases rapidly.

There is also the reason for the rise in real estate price is more population. The more population results shortage of houses which result rise in the price level of the property. Now there is also a lack of food in many countries which pushes the prices of houses and other commercial properties upward.

Reasons of rise in property prices

  • Inflation
  • Shortage Of Foods
  • Increase in Fuel Price
  • More population
  • Devaluation of the currency
  • Interest of the people


Inflation is the main factor of increase in real estate price. When the prices of food rise it directly effect the rise in the property value of a specific area or a country. It ultimately boosts in the price of a house, commercial buildings, shops and flats.

Shortage of foods

When there is shortage of foods in a country, the person has to pay more money to buy food for his family, which result, inflation in a country which ultimately result increases in the price of the real estate. Well, we can say that an average 20% increase in every year in the value of the property.

Increase in Fuel price

When government increases in the fuel prices, which results higher transportation costs. The person has to pay more money to travel one place to another. The increase in fuel results more rise in material cost for construction of houses and other properties. These can also effects in rise in real estate price.

Devaluation Of the currency

When the value of a currency of a country is down, the buyer has to pay more than before in order to purchase certain products. Devaluation in the currency gives a boost in the value of the property.  So, if you are a real estate agent then you will get much commission as before.

Interest of the people

Now a day it is the trend of most of the people, they want modern design houses, fully equipped buildings with modern facilities and also want more luxury property which results increase in the prices of the real estate.

Effects On Buyer And Seller

When the real estate price increases it gives more money to the seller of the property and the real estate agent. In other words, it gives benefits for estate agent and the seller of the property. The decrease in the property price encourages the buyer to buy the property in budgeted price but this condition is very rare. The property is the fixed asset which increases the prices year after year.

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