Property location: How location influences value
The location of a property is a key factor in determining its value and attractiveness. In contrast to conversions, refurbishments or a new build, the location is unchangeable - it remains a constant characteristic of every property. Nevertheless, the location is by no means fixed. Changes in the neighbourhood, such as new infrastructure projects, developments in the district or demographic trends, can have a significant impact on the attractiveness of a property - both positive and negative. But what makes a good location and how exactly does it affect property value?
Criteria for a good location
A „good“ location can be defined by several factors, which can be weighted differently depending on the target group:
- Infrastructure: Proximity to shopping facilities, schools, nurseries, doctors and public transport is a decisive factor. Good connections make everyday life easier and make the property attractive for many target groups.
- Labour market: Properties close to economically strong regions or cities with a high employment rate are in particularly high demand. A good location often offers a short commute to workplaces.
- Leisure and recreation: Parks, green spaces, sports facilities and cultural offerings contribute to the quality of life and significantly increase the residential value.
- Security: A low crime rate and a quiet neighbourhood are important criteria for many buyers.
- Development potential: Areas characterised by planned construction projects, new transport links or growing neighbourhoods offer potential for value appreciation.
How location affects the value of your property
The location not only influences the current market value of a property, but also its long-term performance. Properties in prime locations, such as city centres or sought-after residential areas, often achieve higher sales prices and are more resistant to crises. At the same time, a mediocre location can improve through positive developments, such as the construction of new infrastructure or the relocation of companies, and increase the value of the property.
Conversely, negative developments, such as increasing noise pollution, the construction of industrial plants or a decline in infrastructure, can reduce the value of a property. It is therefore important to consider not only the current situation, but also potential developments in the neighbourhood.
What owners should consider
As the owner, you cannot change the location of your property, but you can emphasise its strengths. The advantages of the location should be clearly communicated in sales documents, such as the proximity to important facilities or the leisure activities on offer in the neighbourhood. For buyers, it is helpful to point out the development potential in order to emphasise the long-term value of the property.
Conclusion: Location is the most important factor for the value of a property, but it does not always remain unchanged. Owners should emphasise the special features of the surrounding area and keep an eye on developments in order to make the most of the value of their property. With a well-founded analysis and a targeted marketing strategy, the advantages of the location can be presented in the best possible way - for a successful sale or a profitable investment.
How location quality is changing
The location of a property does not always remain equally attractive. Various factors can improve or reduce the quality of the location:
- Improvements: The construction of a bypass or motorway feeder road can reduce traffic noise and improve the quality of life.
- Deteriorations: Large construction projects such as shopping centres or factory expansions increase traffic and noise emissions, which can reduce attractiveness.
- Residents' protests: Many residents are resisting large-scale construction projects in order to prevent their property from losing value.
Criteria for a good location
An attractive location depends on various factors, which can be divided into two categories:
1. macro location
- Nearby jobs, especially in future-proof industries
- Local suppliers such as supermarkets, drugstores and pharmacies
- Educational institutions such as crèches, daycare centres and schools
- Good connections to urban centres by car or public transport
2. micro-location
- Green streets with parking facilities
- Proximity to parks and green spaces
- Attractive living environment with low burglary rate
The importance of location for property value
The location of a property is a key factor in determining its demand and price. A location that offers proximity to workplaces, a good infrastructure and an attractive residential environment can significantly increase the value. At the same time, negative influences such as noise pollution or poor transport links can reduce the value.
