The location of a property is one of the most important criteria from which its value can be derived. While the type of building can be adapted through remodelling and renovation or even demolition and new construction, the location cannot be changed.
However, this does not mean that a good location must remain so forever and, conversely, that a medium-quality location cannot "move up". If, for example, a neighbourhood or a municipality is relieved of traffic congestion, e.g. because a bypass or motorway feeder road is built, then the quality of the location improves because noise emissions decrease. Conversely, if larger residential buildings or a shopping centre are built in the neighbourhood, or if a company wants to expand and extend its factory, which results in more car and delivery traffic passing through the streets, this often reduces the quality of the location. Local residents therefore often take legal action against large-scale construction projects. They fear, often rightly, that the value of their property will be reduced.
The most important characteristics that make a location a good location are: proximity to promising jobs, local amenities such as supermarkets, bakeries, drugstores and a good supply of pharmacies and general practitioners. The availability of crèches, daycare centres, primary schools and secondary schools also improve the quality of the location.
In municipalities surrounding conurbations, it is also crucial to have the easiest possible access by car, bus and train to the main centre. This is because most jobs exist and are created in urban centres. In Munich, for example, over 27,000 new jobs were created in 2017, but only 8,000 flats.
In addition to these larger-scale features, there are also requirements for the micro-location that many property seekers value. Is the street planted with trees, are there parking spaces next to the building or on the street? Is there an underground car park? Are there parks or small green spaces in the neighbourhood? What type of neighbourhood do the residents belong to and is the burglary rate in the area particularly low?
As you can see, there are a whole host of criteria that influence a property location and therefore also its value. Are you unsure how much you can ask for a property in your location? Contact us now. We will be happy to advise you.
Photo: BrianAJackson
