Sometimes, you hear the phrase “location, location, location” in real estate. It is because location is among the most important factors in real estate. You may wonder why some properties, even smaller ones, go for higher prices than their large counterparts. Many do not just look for a place to stay but a place in a community with accessibility, security, and convenience. Some people would choose a $10 million house in the heart of the town over a five-million-dollar one in the rural province.
Location impacts real estate value significantly; here is why.
Safety and Crime Rate
An area’s crime rate significantly determines its desirability and the value of properties and neighborhoods. Homeowners in high-crime rate locations constantly worry about their safety and that of their families. As a result, some may want to sell their homes and move to more secure areas.
However, this reduces property demand in these locations, thus lowering the value. On the other hand, an area experiencing low crime rates can be termed as secure. Thus, many people want to buy commercial and residential properties. With this rise in demand, the property value is bound to rise.
Potential for Future Development
No city or neighborhood is static; change and evolution are inevitable. Businesses, public transportation improvements, and new infrastructure significantly impact property value. Real estate investors identify areas with a potential for future development before buying a property. Using a trusted real estate CRM aids in tracking emerging trends and opportunities in dynamic markets.
Future development plans, let’s say by the government, are a game-changer as developers view them as a window to the area’s future development potential. For example, if there is a plan to build a new highway along certain areas, many investors will want to acquire properties along the proposed road. As a result, the property value will go tremendously high.
A location with essential amenities like parks, restaurants, and entertainment facilities is a hotcake to many home hunters. Homebuyers want to live in a neighborhood where they can access essential services without straining.
Homebuyers find their ideal homes by searching for properties near their desirable amenities simply by searching trusted sites like Hauzisha.co.ke. Areas surrounded by many amenities are more valuable than those with scanty; thus, properties in these areas are more expensive.
Proximity to Schools
The nearness of a location to schools greatly influences its desirability. It also determines the population class that will likely want to settle there. For instance, a retired couple will not mind buying a home away from school, while a younger couple wants to live near elementary, high schools, and colleges.
Therefore, places with a large working population have high school demand. Hence, the property prices are high. Nonetheless, investing in these areas can be lucrative since they are appreciated faster.
Access to Transportation
The working population comprises the majority of homebuyers and renters. Thus, many prefer living where they can easily commute to work. As a result, any property near transport networks, such as public roads, airports, or railways, becomes a top priority. With that, investors and developers invest more in these areas to cater to this population. The result is an increase in demand and property value.
The economic state of a place greatly affects the property value, residential or commercial. For instance, an area with many industries attracts commercial property investors since existing firms trigger the development of complementary and supplementary firms. Additionally, these industries create robust job opportunities.
The latter attracts residential property investors to cater to the growing workforce. As a result, there will be a constant rise in demand for properties in this area. Hence, as a rule, the higher the demand, the higher the property value in these regions.
Location is a crucial factor in determining the value of properties in the real estate industry. Investors are constantly looking for investment loopholes to put their money into. Generally, the higher the demand for property in any location, the higher the value.