HomeBlogKNOWLEDGEHow to Find the Best Neighborhood for Your Home and Why Location Helps to Skyrocket Property Value

How to Find the Best Neighborhood for Your Home and Why Location Helps to Skyrocket Property Value

When it comes to real estate investment, the adage “location, location, location” captures beautifully the essence of it. The position of a property plays one of the biggest roles in determining its value, potential for appreciation and demand. Selecting the right vicinity can be a deciding factor between a healthy investment and a not so good one. In this blog we go through a handful of considerations, recommendations and factors surrounding the fact how location influences property value and things to look out for when selecting an area.

How Location Affects Property Value

The location of a property is the most important factor in determining its market value both with respect to its current value and its future appreciation. Here’s how location plays the major role in determining the value of a property:

Access to Amenities:
If a property is situated near schools, hospitals, shopping malls, parks or public transportation areas, its market value will be higher and it will appreciate at a greater rate as there will always be a good demand for such property.

Walkability: 
Nowadays, home buyers prefer neighbourhoods with a high walking score. So that residents can easily walk to nearby grocery stores, parks, cafes and schools. City planners have found that walkable areas not only generally improve people’s overall quality of life but they also increase the property’s value. Homes in highly populated walkable areas have actually been shown to appreciate at faster rates than those located in car-dependent suburban areas.

Connectivity:
Good road networks, metro accessibilities and the presence of major highways are some of the things that play as a convenience factor for which buyers do not mind shelling out big bucks. Properties in well-connected neighbourhoods fetch faster appreciation. 

Also, those neighbourhoods with less crime rate are preferred which ultimately lead to higher property value. Safety has its cost and people are willing to spend more for their peace of mind.

Economic Growth in the Area:
Locations with thriving industries, commercial zones and job opportunities tend to attract more population which drives the prices of home up.

Future Development Plans:
Locations that are slated to get the next big infrastructure projects such as new highways, airports or business parks etc. tend to have a skyrocketing appreciation potential as most buyers look at future growth prospects while investing.

Emerging Trends that are being observed among home buyers while choosing a neighbourhood:

Aesthetic and environmental factors
The pleasantness of a neighbourhood, nearby parks, and access to lakes or scenic outdoors can increase property values. Additionally, being in environmental zoning which is said to be more environmentally friendly is very much in demand.

Green Spaces
One of the factors influencing real estate values worldwide is the desire for eco-friendly communities. People are increasingly looking to live in communities that have extensive green spaces, in-campus parks and environmental sustainability considerations. Property values near green areas tend to rise quicker as demand comes from buyers seeking healthier and less congested living environments.

The Rise of Micro Markets
Buyers used to concentrate on city centres or important business districts, but increasingly they are searching for “micro markets” — emerging areas within cities that are affordable now but have growth potential. Often, there is increased local job growth, shopping and entertainment nearby too. You get the neighbourhood feel but without the central city price tag.

Lifestyle Appeal
While accessibility and infrastructure are important, the cultural and social capital of a neighbourhood plays a big role in its desirability and real estate value. Locations with interesting pasts, thriving arts scenes or new dining and entertainment hotspots attract buyers looking for experiences as much as they are for convenience.

For instance, Hauz Khas in Delhi or Indiranagar in Bengaluru became property hotspots because of their cultural appeal and nightlife. Developers are taking cues from this trend to design residential projects that include cultural spaces such as art galleries, amphitheatres or spaces for local markets to cater to such experience-oriented buyers. Opting for a location that offers both functional and cultural experiences can give that extra edge to your investment.

Urban Expansion and the Ripple Effect
Urbanisation keeps affecting property values as cities outgrow their former borders. When large cities like Delhi, Mumbai and Bengaluru develop towards outer areas, peripheral localities start becoming sought after. Termed as the ripple effect, it causes property rates to increase in adjoining areas because central city localities get saturated and expensive.

Instead of focusing on the areas that have already developed consider future “spillover” when picking a location, developers are turning their focus to the fringes of major cities and with each new development opening along a train line or a new road the city expands and those that are lucky enough to buy early enough will reap the rewards as the area grows around them. City metro lines expansions, new highways, new commercial precincts this ripple effect brings those sleepy suburbs into focus.

Social Infrastructure
Also, the increased preference for hybrid work models is leading more homebuyers to look for neighbourhoods that facilitate work from home along with access to necessary amenities. This is driving developers to come up with projects that offer residential convenience along with social infrastructure such as co-working spaces, cafes and gyms within the same precinct.

Conclusion: Making the Right Choice for Long-Term Gains

Location of a property is the fundamental parameter on which its value, appreciation potential and overall investment return hinges. Be it the proximity to business centres, presence of quality schools or promise of future development – making an investment choice is as much about the present as the future. If you are looking to get the most out of your property investment, Property Souk can help provide customised solutions, expert advice and property recommendations that fit your investment criteria and lifestyle needs.

At Property Souk, we understand that every investor has unique goals, whether it’s maximising rental income, securing long-term capital growth, or finding a home that balances lifestyle and convenience. With our in-depth market knowledge and tailored approach, we not only help you evaluate the immediate benefits of a certain property that we recommend for you but also foresee its future potential. By considering both current trends and upcoming developments, we ensure that your investment decision is taken on the basis of well-informed considerations and strategically sound investment, giving you the confidence to make the right choice for long-term success.

Disclaimer: The content provided on this blog/Website is for general informational purposes only. We do not offer any specific advice or recommendations. The information presented here should not be considered as professional advice or a substitute for professional consultation. Always seek the guidance of a qualified expert with any questions you may have regarding your specific situation. The opinions and views expressed in the blog/ Website are those of the authors and do not necessarily reflect the official policy or position of Property Souk


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