What tends to increase the real estate prices in a region?



The cost of real estate can be called one of the most pressing topics of concern to residents in the world. Apartment prices are regularly discussed both by professional participants in the real estate market in offices and by ordinary people sitting with friends or colleagues over a cup of coffee. And this issue does not lose relevance, regardless of the specific situation on the market: someone would like to successfully invest in a new building, someone wants to buy a larger apartment, and others try on buying even the most inexpensive, but their own apartment. In this article, we will talk about what affects the real estate prices in a region.

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Geographic factor

Considering the situation on a national scale, we can say that the geographical location is a fundamental factor affecting the total cost of housing in a particular city. In regional and provincial capitals, apartment prices are significantly higher than in the periphery. There are other factors related to geography that can significantly affect real estate prices. For example, the presence near the city of tourist or resort areas. 

Entertainment factor

The price usually skyrockets once the region receives several entertainment venues. These could be any type of service: theatres, hotels and even land-based casinos. In the world, where the gambling industry has notably gained foothold casinos play an important role. People are willing to spend a lot of money on high-quality ones. And if a casino is opened then the price is altered as well. To further support this opinion, there was an online survey conducted by Spinia casino to find out how local residents felt about having casinos in their neighborhood or in the local area. Turns out that many interviewees, even Americans are more than happy to see a casino open in the premises as it provides locals with easy-to-access jobs as well as harmless entertainment as long as the venue upholds local gambling regulations.

This may not increase the price of real estate dramatically in the area, but it is a factor that every real estate agent has to consider when pitching a new house to potential customers.

Living standards 

A fairly substantial price criterion for the real estate market may be the standard of living that determines the purchasing power and business activity of citizens. The presence in the city of developed commercial structures, profitable enterprises, as well as a number of other economic factors, invariably raises apartment prices. As a rule, fairly large cities have similar advantages, and the situation is usually this: the larger the city, the more expensive the housing. This is due to the fact that megacities have much greater opportunities: salaries are higher, broader career potential, and more commercial opportunities. 

Transport factor

In addition to these large factors, price dynamics cannot be discounted and local ones – above all, improved transport accessibility.

The closer to the center, the more attractive the project is. However, you need to understand that the most important thing is not physical distance in kilometers, but how long the road takes. 

Renovation factor

Renovation can also significantly affect prices and the volume of supply, though not in the coming year, but in the long term 3-5 years. An increase in the supply of new housing under the renovation program may compensate for the decrease in the number of new projects due to the transition to escrow and project financing. If the supply of commercial housing increases significantly, prices may go down.

Conclusion

All of the above factors affecting apartment prices can be summed up with the expression “convenience of living”. And precisely for this, first of all, we pay money when buying a home. This is the location of the area, and the convenience of transport interchanges, and the characteristics of the house, and the layout of the apartment, and social infrastructure, and the environment, and much more. At the same time, each parameter has a certain effect on the cost of housing, and sometimes it can be difficult for specialists to orientate how realistic prices are in one case or another. Even professional appraisers sometimes call different numbers, not hiding that this assessment is relative.

Nevertheless, the majority of ordinary people in apartment prices have only idle interest, while specialists constantly analyze the real estate market trends. That is why, if you intend to buy or sell an apartment without having the appropriate experience, it is better to contact professionals. From a practical point of view, their opinion will always be more valuable than the opinion of acquaintances expressed over a cup of coffee.