Ever wondered why two of the same type of 2 BHK apartments might not cost the same? They might look the same, but there are so many factors which affect the value of your home or a home to be. It could be about the property itself, or its locale or several other factors. Here are a few factors which might affect your home affordability.

Location

Real estate, residential buildings or any property located in commercial or market towns or developed towns would hold a higher value than those in developing areas. Commonly, the developed locations demand more money, but the developed areas have their perks too, so both can impact affordability.
It is also essential to note that the less developed localities or the neighbourhoods which will see growth in the near future will have homes which will cost you less, but the prices will go high over time. Hence, the price of any property will vary with the potential of a location to grow along with its accessibility.

Amenities

This is one of the major factors we look at while buying a home, right? Who doesn't like the variety of modern amenities? It may seem that all the properties provide the same amenities, but that is not true. Some builders pay special attention to the amenities that will add value to the property. Amenities include basic needs like electricity and water supply and amenities like a swimming pool, gymnasium etc. these will affect the overall value of a property.

Infrastructure

The condition of the infrastructure in the vicinity of the property is also a significant factor. The presence and condition of the roads, malls, railways, and airports around the property or near the area can also bring highs and lows in the value of the home.

Commercial real estate

The prime example of commercial development is Pune where there is development in the city that gives rise to IT companies, malls and commercial offices. The development of such commercial complexes near residential areas helps reduce the time and energy wasted in commuting to workplaces and increases the price of real estate in the area. Not only that, but the commercial development brings in opportunities for the residents of that area, which again influences the price of real estate in that area.

Demand and Supply

Demand for real estate in a particular area is inversely proportional to its supply. As soon as the supply of real estate decreases, the same value will increase. The demand for any real estate is dependent on a factor, which is the population. It also depends on the people living in a particular area, and their demand and wish to be part of a particular locality also fluctuates the worth of any property. Demand and supply depend on the population and development of a particular area. In today's world, people prefer living in an area which is developed rather than living in an area which is developing.

Affordability

Affordability means the cost incurred by the owner to retain the property. Affordability depends on three variables: interest rates, property prices and wages. If any of these variables reach their maximum level in any area, people start looking for a different place elsewhere.

Composition

The specifications of the material used, the quality of the material, durability, layout and design of the building are also crucial things to look at. Quality and cost of materials during the construction, size of the material, rates of labour, and other attributes such as roof covering, the height of the building, type of foundation and waterproofing used all affect the property's price.
The valuation of the property is also directly related to its composition & structure.

Customisation

Real estate costs become higher when builders customise residential space on the lines of the purchaser's requirements. For example, some might want to change the balcony and convert it into another room. This customisation costs a lot and is the major factor affecting home affordability.

Any home buyer or real estate investor should consider the above before investing in any property. Ensure that the property's value is justified by the factors affecting its worth. So, next time you go home-hunting, remember to look at all those factors and decide wisely.

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