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 renovations, refurbishments, or even demolition and new construction, the location is unchangeable.
However, this does not mean that a good location will remain so forever, and conversely, that a mediocre location cannot "improve." For example, if a neighborhood or community is relieved of traffic congestion, such as through the construction of a bypass or highway access road, the location's quality improves because noise pollution decreases. Conversely, if larger residential buildings or a shopping center are built in the vicinity, or if a company wants to expand and enlarge its factory—each of which results in increased car and delivery traffic—this often diminishes the location's quality. Therefore, residents frequently take legal action against large-scale construction projects. They fear, often justifiably, a decrease in the value of their property.
The most important characteristics that make a location a good one are: proximity to promising jobs, local amenities such as supermarkets, bakeries, and drugstores, as well as good access to pharmacies and general practitioners. The presence of nurseries, kindergartens, primary schools, and secondary schools also improves the quality of the location.
In communities surrounding metropolitan areas, easy access to the main urban center by car, bus, and train is crucial. This is because most jobs are located and are being created in metropolitan areas. In Munich, for example, over 27,000 new jobs were created in 2017, but only 8,000 new apartments.
In addition to these broader characteristics, there are requirements for the micro-location that many property seekers value. Is the street lined with trees? Are there parking spaces at the building or on the street? Is there an underground parking garage? Are there parks or smaller green spaces nearby? What is the social background of the residents, and is the burglary rate in the neighborhood particularly low?
As you can see, there are numerous criteria that influence a property's location and therefore its value. Are you unsure how much you can ask for a property in your area? Contact us now. We'd be happy to advise you.
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