One of the most important portion of people’s wealth is taken up by real estate industry, be it your own property or something you’ve rented. Realtors provide you with space for living, working, amusement, shopping and much more. Though this market is a crucial one but it is affected by certain factors which channelize its movement.

Factors that influence the real estate industry are:
Economy: one of the key factor which determine the fate of the real estate market is the overall health of an economy, which is generally measured in terms of economic indicators like GDP, prices of goods, employment data, manufacturing activity,etc. This can be seen by an example, if people are employed permanently they will demand a space to their name near their work place and to fulfil this need commercial projects in Gurgaon are developed. To say, if the economy is doing well, the real estate market will also do well.


Government Policies: Legislation highly impacts on how the real estate works and fixes its prices and norms for selling off a property. The union budget of 2017, brought in a lot of changes like the adoption of RERA Act, which brings in benefit to customers. The extension of tenure loans under CLSS etc are all policies which greatly impact real estate market.

Interest Rates: Since one cannot completely buy a property on one go (complete payment), or all by themselves, interest rates come into play due to borrowing of loans. The way one approaches for investing in a property is highly dependent of the current home loans or property loans that are applicable in the market. Ones the rates are low, demand for it increases and vice versa.

Demographics: This is a factor which shows the composition of a population, such as age, race, gender, income, migration patterns and population growth. Though these factors are usually overlooked but becomes the deciding factors of how people will exactly think when it comes to buying or investing in a property, and thus affect its property pricing. The change in demographic scenario highly affect the trends of a real estate market.

For example, in India once a couple decides to marry, they think of buying or rent an apartment for themselves and look for best schemes available in their budget, which is well thought of by real estate Gurgaon, or how people approaching their 50’s decide on buying vacation homes for relaxing over weekends or homes post retiring away from main city.

So, to say like every other industries or market which is driven based on their prospect customers and their demands, real estate is also driven by the above factors.