How much does the location say about the value of my property?

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 conversions and renovations 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 neighborhood or community is relieved of traffic congestion, e.g. because a bypass or highway feeder road is built, then the quality of the location improves because noise emissions decrease. Conversely, if larger residential buildings or a shopping center are built in the neighborhood or a company wants to expand and extend its factory, which results in more car and delivery traffic rolling through the streets, this often reduces the quality of the location. This is why residents 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 centers, elementary school 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 regional center. This is because most jobs exist and are created in metropolitan areas. In Munich, for example, over 27,000 new jobs were created in 2017, but only 8,000 apartments.

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 parking garage? Are there parks or small green spaces nearby? What type of neighborhood 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