From the start of real estate dealing all the way to moving into your new house, one factor is considered all along, location! Whether you are starting out to search for a new location to buy property or invest into, or you are looking for a dream house; the location is the first thing you will be the defining factor. From searching for a property in a general region, say; DHA Islamabad or considering the location of a house with respect to the street it is in, location is the driving force behind many real estate dealings.
To outline the few reasons why people opt for an ideal location are: ease of their commute for their jobs and transport around the city, the value and status that comes with a certain location’s reputation and state of the art development and the amenities available to them and their proximity for making their lives easier.
Many property developer hold location as a priority whenever developing a new project. Location has the key that will determine the worth and value for the property. For example you are developing a residential area in midst of a commercial hub, the people who want to imagine a quiet and peaceful life in residing there might be warded off by the idea of living in between the bustling commercial sector. On the other hand putting a commercial sector for development in a remote suburb part of a city is not going to be good news for the developer themselves as the shops and institutions set up thee won’t get much traffic and highlight from their surroundings.
Location’s importance for an investor and resident:
We briefly went over the few points we are to discuss when explaining the importance of location for a property:
The Area’s Reputation:
When considering a house one may have a few demands on the list of their dream home. It might be an area that is known for its use of natural surroundings to beautify it, such as an area with loads of gardens and parks for residents to avail. On the other hand some people might imagine their dream house to be in a posh neighborhood that will directly reflect an image of opulent living experience. A common demand of people looking to invest and buy property is of the area’s security.
Every area’s development produces an image that caters to the demand of a variety of people, however security is a factor that is generally valued amongst investors. A secure location means security of one’s life and property. For a resident it is a good check to make sure whether their area of living is safe or not. An area where there are underground malpractices being carried out or the robbery or crime rates are high can be displeasing to consider for residences. The factor of an area’s security means different things for real estate businessmen. It is important that an area is safe and secure so that the property one has invested into does not fall to any scams and frauds commonly present on the market. The cases of illegal takeover of a lone standing plot or scam artists moving in a house and claiming to be the real owners are many and enough for real estate investors to be warned by.
Location respective to surroundings and commute to city:
Another important aspect of considering a location for living or investing is guised within their surroundings. This can mean two things; the neighboring area’s importance as well as the ease of transportation to other important parts of the city.
The surroundings of an area can also play a big role in determining its worth for the residents. Areas that cut off at the boundaries of posh neighborhoods like Bahria Town Rawalpindi or DHA Islamabad are also greatly valued. This can be a number of reasons. People living near important areas might have access to the facilities, posh gardens and parks as well as tourism attractions placed with posh neighborhoods. Moreover the aspect of security of a neighborhood might affect crime rates go down in the surroundings as well. A well developed neighborhood generally indicates a solid infrastructural development of a region; this is why many home investors like areas that have a great neighborhood.
Many people are displeased by the idea of a residential property or a commercial hub placed in a suburb area away from the heart of a big city, such areas are inconvenient to travel to for a regular office job and as a resident might be too dull and secluded from the main city. On the other hand many Pakistanis will prefer living near an area where shops and commercial facilities are available at walking distance so they can save on travel costs. People who consider travel costs are also going to be pleased by an area with supply to local transport that saves them money on commute to their jobs.
People who are moving to bigger cities for a better life and job opportunity will also be very pleased to rent out or invest in an area in a commercial hub or nearby one, for the ease of transportation. An example can be taken by areas of importance that are found in Lahore. In the past few years Lahore has introduced public transportation to avail residents of popular real estate developments. This in turn gave the favor to the areas in which a system of transportation was developed. A significant increase in investment in areas nearby the public transport hub was observed, that clearly reflected its importance for the locals.
A lone standing house does not get the attention and traction from home investors, there might be little to no development in the surrounding area and basic facilities of life may be absent to a person who wants to reside within it. A remote or deserted house is also more prone to security issues and property frauds due to being away from the general public eye.
Availability of Facilities:
A house cannot stand alone on its own. The residents are bound to the facilities and amenities provided to them to ensure a smooth flow of living in any location. Consider the example given above, a remote area with little to no development is not functional to live into. Primary the facilities of gas, electricity and water systems are not going to be available making the management of household tasks extremely tedious and on the other hand the daily expenses and needs that come with living, such as groceries and or other recreational facilities are also going to be absent.
In contrast to the above example, areas that are well developed and equipped with all sorts of amenities for the residents to avail are going to be bustling with estate investment. The proximity of these facilities also matters a great deal for investors. A house or a residential project that requires one to take long travels to basic groceries is not going to be ideal for living. On the other had considering an area like DHA Islamabad or Gulberg Islamabad that is packed with all the necessary as well as recreational commercial services are booming real estate hot spots in the capital.
The lack of commercial facilitation to people is also an issue for investors who put their money into newer developments. In case the development is abandoned due to legal issues or some other mishaps; the lone standing plots are not going to have any residents due to their being no practical commercial resources to avail.
All three of the factors of neighborhood, amenities and an area’s image are relatively interconnected. A safe a neighborhood that is placed in an important location that is equipped with safety, life’s facilities and provides the image of ideal living is going to be highly invested into. If we look at the chart topping societies and residential projects, names like Bahria Town and DHA are commonly found in Pakistan’s major cities. There is no difference opinion that these locations are placed in important parts of town, are highly regulated and secured as well as provide state of the art facilitation to the ones who invest. All these factors combined make a location ideal for estate investment.
Location, Location, Location is a well known saying amongst real estate professionals. This statement signifies the importance of location when it comes to location. It is not a subjective factor that is for the preference of an investor, but there are important objective factors that are needed to be taken into consideration when investing into homes. The neighborhood, facilitation and your proximate location to surroundings is all important to value of real estate.
All the most renowned, opulent and successful society projects follow the rule of choosing the best location that can attract investment from a wide audience as well as make the area a dream location for residents.