Why Location matters so much in Real Estate
Location Location Location!!!
Chances are that clients have heard this old real estate adage: Location, Location, Location, but they may not understand exactly what it means. If the property is situated in a prime locality, it will command a better selling price. The same property in an area that is not so prime will command less price. Though the buyer may end up paying more for the property in a better locality, there are likely to be more profitable options in the times to come. However, if the buyer invests in neighborhoods that are worse off, though the cost may be a little lower, in the beginning, there will eventually be lack of demand, lower rents, and lower prices.
The factors that make a home’s location desirable can vary from market to market, and in many cases result from a combination of considerations. As far as India is concerned, the real estate market is a diverse one when compared to many other countries. To choose a location, any buyer is input with an overwhelming amount of information today, mainly because it is becoming more common to rely on technology for the purpose. We are in fact currently in the midst of a mini technological boom in the real estate investing world. It is becoming increasingly more popular to rely on technology and formulas to make your investing decisions. While it can certainly be helpful, they will be for naught if you don’t remember the most important piece of investing criteria-location. The reality is that without a good location the best numbers and the best data will quickly become irrelevant when buyers or renters show no interest in the property. In such cases, the capacity of the buyer to choose the best location lies in reading between the lines and understanding the information in depth.
It is important to make a note of a few points about the location of the property. Traveling just a few miles in most towns could paint a completely different picture. This is where it is critical to make sure you know everything about the location you are buying in and are paying for the best location. Do your homework to find out if there are any changes coming to the area. There are times when a location may seem ideal only to undergo sweeping changes in the near future. Before you buy, you need to know everything about the location you are buying in. This would help to save a lot of heartache in the future. It is good to evaluate the property from a mid- to a long-term view and how the locality is expected to evolve in the period. What may be a relatively peaceful free piece of land today may turn into a bustling multiplex in the next few years. What might look idyllic in the early morning may have a whole different vibe in the evenings. A safe neighborhood may not be safe in the future, so do not place all your bets on one factor and ensure you are talking with a realtor that knows the area over time and is familiar with the development plans on the drawing board or already in motion.
Location Affects Commercial Interests. Location is a significant factor in the success of any business. In real estate, location can mean everything from the type of assets you have to the demographic and market you target. The importance of location is not only limited to real estate but also extends to other industries such as retail, manufacturing, and agriculture. For example, if a retail store wants to open up in a certain area, they will need to know what kind of demographics, what is the footfall traffic that will pass their business, are there and what kind of amenities are available for customers
From a company valuation point of view Real estate is an important asset for any business to have. It is the most important investment that a business can make. The location of a property matters a lot when it comes to real estate investments. Location has an impact on the price of the property and on its overall value of the business.
Here are some crucial factors that can make a location attractive to real estate buyers both residential and commercial:
Resale, Resale, Resale
Savvy home buyers keep an eye on the future and whether a property will bring good returns when they decide to sell it. Estimating resale value can be tricky since market and economic trends can be difficult to forecast, but some neighbourhoods and areas have historically higher sales prices and/or lower time on market statistics which can be indicators of potential resale value. Price and location often times will go hand and hand with buyers. Think about what is the most important factor for you when you look to buy. Sure, price is nice, but location is always better. It will dictate everything else in the transaction and with the property. If the property is located in a nicer area, your property will be in greater demand and can seek a higher selling price. The same property located in a diminishing area will not have nearly the same appeal and won’t create nearly as much demand. You may pay a little more when you buy, but to buy in a better location means you have many more profitable options down the road.
Finding the best real estate investments does not solely depend on choosing the right location and hoping for money to fall in your lap. Successful real estate investors take into account many factors and conduct the right real estate market analysis and due diligence to make smart decisions in growing and diversifying their real estate returns in big ways In our Pune, the areas has stood the test of time with continuing appreciating values especially in the areas of Koregaon Park, Boat Club Road, Kalyani Nagar, Sopan Baug and a good few more micro markets that are set to consistently perform well above par primarily due to location.
Convenience, Convenience, Convenience
Proximity to business districts, schools, recreational areas, airports, and public transportation can cut commute times and make those properties enticing to buyers. In areas with high traffic volumes, convenience to frequently visited destinations can be even more important to buyers.
Amenities, Amenities, Amenities
Homes that are near parks, dining, entertainment, shopping, and recreational opportunities can be perceived as offering a higher quality of life. Amenities can be particularly important to relocating clients who are eager not to waste time traveling. For families and the elderly, proximity to medical facilities is an important driver. Between Boat club road and Koregaon Park are world class medical facilities that are superb quality by global standards and make this an important factor for buyers today.
Schools, Schools, Schools
Homes located in highly regarded school districts can have higher home values and quicker sales. The ability to walk safely to local schools can be an added plus. For families, access to reputable schools can be particularly important. The Mahindra International school is a big draw for Aundh and Baner where cosmopolitan living meets expectations for the entire family. More world class international schools are there in Pune and as they have grown in reputation the development surrounding them has followed accordingly and given successful launches to 5 star development and amenities.
Prestige, Prestige, Prestige
Certain neighborhoods carry status and are sought after as a result of their esteemed reputation and cachet. In these areas, buyers may be willing to sacrifice square footage or lot size in order to afford homes in such areas that look to hold their value and demonstrating the good life. Prominent neighborhoods may be older, established communities like Boat Club Road and the lanes at Koregaon Park as well as new, trendy developments that are up and coming such as Margapatta and Kharadi
Safety, Safety, Safety
Homes in areas with low crime statistics can be appealing to buyers, especially those with families and aging homeowners. Gated communities or business parks offer an added layer of security that can set a property or a neighborhood or commercial area apart from the others
View, View, View
Homes that are positioned to take advantage of scenic vistas are often highly regarded. Sought after panoramas include water, mountain, golf course, forest, and city views. Homes with nice views can bring higher asking prices than comparable homes in the same neighborhood (even the same street) that may not have enviable vantage points.
If at all you are stuck at a point where it is difficult to evaluate a real estate property, the best thing for you would be is to go back to the basics. Take a deep look at the location bearing in mind the above. Acquire the knowledge by appointing a quality realtor that knows the area through and through by virtue of having done consistent and successful business there over time.
Working with a reputable real estate agent can help you streamline the process and make sure you get the best out of the market as per your requirement. Here at Bhatnagar’s established in 1978, we specialize in the areas of; Koregaon Park, Boat Club Road, Kalyani Nagar, Sopan Baug, NIBM, Kharadi, Margapatta, Viman Nagar, Nagar Road, Bund Garden, Camp, Mundhwa, Aundh, Baner as well as some specialist areas outside the city for the larger and more exclusive plots. We deal in the top of the residential market, commercial, industrial as well as land sales in Pune.
Check our website out for the latest listings: https://bhatnagars.co.in/
Call us for a discussion or also to make an appointment in person to discuss your requirements:
Charu:+91- 8055894455, Team Bhatnagar’s:+91-9370317908