Importance of Location for Real Estate Projects
There is a famous saying in the real estate world that when looking to buy or invest in a good property all you need to focus on is location, location, and location. There is a good reason that a good location can make or break the demand for a real estate project.
Think back to the basic economic principle that governs the ‘worth’ of almost everything in our world; supply and demand. When an item’s demand is more than its supply, the value automatically increases.
For real estate projects, the structure itself can be remodeled, renovated, or removed completely if required but what’s permanent is its location.
This is why experts advise focusing on the location more than anything else. The location of a project can become desirable or undesirable over time but there are a few factors that you can keep an eye on to make sure you make the right decision.
Centrality and The Bigger Picture
Most property buyers want their house or office etc. in a location that is somewhat within the city or the town they like.
People often work in the city or run their businesses there so it is actually very relevant to them where they will be living and what the ease of access to other important things like hospitals, schools, work, recreational activities, etc., is going to look like.
Places that have good ease of access for potential buyers and also have less room for expansion are more valuable because as per the supply and demand rule if it is rare, it is worth more.
Neighborhood and Its Perks
Another important factor that can help understand the value of a project is the kind of neighborhood you will get to be a part of by living there. Is the place accessible? Does it look nice and investment-worthy? Does it have all the important amenities you’re looking for? A location with good roads, accessibility to public transport, and shorter commute times to important locations in your city are worth more.
Buyers and investors with families will look for locations that have nice schools, parks, and overall, a community with a good and safe reputation.
Sometimes you might be one of the first few investors that’s taking the bet on a place or maybe you’re investing on a property that is present in an existing city or town.
In both cases, it is important to understand the scope of future developments in the area. Even from a project owner’s perspective, it is one of the most important considerations.
An area that has room for further development in the future is a better and safer bet for investment no matter what kind of an investor you are.
The Property Itself
Location is a great starting point but it is never just about the location. When you’ve narrowed down the ideal location, it is equally important to build something nice and investment-worthy because the chances that there is only one option to choose from in an area are very low.
Pakistan has seen insane growth and investment in the real estate sector. The knowledge of the potential of the industry is not limited to just a few which means there will be competition.
Competition when you buy and competition when you sell so if all the above factors are similar then your decision may come down to the difference between the actual quality of the project itself.
In Pakistan, we have witnessed the expansion of many existing projects in response to the interest they got from the public while at the same time we have also seen many new ‘closed societies’ projects that are promising people a completely new way of living that will have an enhanced quality of life by exceeding expectations in all areas.
Keeping those in mind, it becomes imperative for investors that the location of this promised land of change and quality does not cost them hours of their daily lives.