Do This PEST Analysis Before Buying a Property
Looking for a property looks to be a simple task while it is one of the hectic tasks in the World. You have to look for house designs, property tax, transfer of property act, property dealer, location, facilities, and everything related to that. Whether you are looking for a 2 bedroom house for rent in Karachi or anywhere in the World, you have to be aware of four factors that are PEST (Political, Economical, Social, and Technological).
If you are concerned about buying a property in Karachi, you can have a unified marketplace solution at JagahOnline for all the needs you have. With the help of PEST, you can understand the factors that decide the property value. Before looking for a property, you need to know about the historical events in that area and the mindset of the society of that region.
Political
Whenever you need to purchase a property or any high-end product, you need to be aware of the legalities of the state. For instance, there are tax policies, nature of politics, governmental laws and even regulations. Similarly, political parties’ presence also plays a crucial role in the value of an area.
Countries with instability and poor political conditions have a very low property value while vice versa is found where there is high stability with strict legalities. There are war-affected countries where the inflation rate is at its peak along with the currency rate. It is one of the crucial reasons for property value nose-diving fall. The crime rate also affects the prices and security concerns of an area.
Economic
Likewise political, Economic factors also deal in taxation but with a slight difference. For example; the Interest rate, exchange rate, Inflation level, and Consumer price index are decisive parameters of the Economic factor. Prices of property depend heavily on economic factors because of the above reasons. If a region or city has a higher economic value, and so does the property value.
Social
Some areas are expensive as compared to others due to the high standard of living. Social factors include demographics, lifestyle, health and safety, culture, values, and social class. Thus, the property value affects the buyer. Social classes also decide the value of the property, because upper-class societies have a high standard of lifestyle that automatically shoots the property value.
The higher the cost of living index is, the higher the prices will be in that area. The more facilities are available in a society, the more expenses raise for their maintenance.
Technological
In those areas where advanced services with up-to-date development take place, indeed the property prices also have an impact. The higher the technology is, the better the region is. Similarly, an underdeveloped area has lower prices of property because of a lack of energy facilities. These amenities either decrease the value of a property or increase. Thus, the level of technology also matters.
Since electric cars have arrived, demand for solar panels has also increased. Global warming has caused severe damage to the environment that is making an impact on the sea level. Developed societies are shifting towards sustainable energy resources to fight global warming.
Conclusion
This was a PEST analysis to assist you in the property purchase process. There are also other factors that you can use to measure the value of a house. Those other factors are secondary factors or you can say micro factors. For instance; Design of rooms, the structure of a house, and view for landscape. For a house for rent in Karachi, you may have several societies with variable prices with respect to facilities and PEST factors.
JagahOnline is a unified solution for all property-related services whether you need a house, flat, services, hardware, and home decors. You may also try similar blogs at JagahOnline for better lifestyle and tour guidelines.
