Location is still the most important factor for real estate investment

Why location is the single most important factor?

And the location is the single most important factor that can differentiate between the values of two properties, bought at the same price. A few investors do make real estate investment decisions based on the condition of the property and not the location, which is a mistake. The condition of the property can be changed anytime and even in some scenarios, the size of the home can also be changed (especially, when you buy villas in Dubai), which can affect the price of the property.

However, the one thing that you cannot change is the property’s location. On the contrary, a great location can change the entire neighbourhood such as Downtown Dubai or Dubai Marina.

Note: An attractive location creates desirability and desirability creates demand, which determines the supply and eventually increases the real estate prices.

The real estate agents and experts understand this principle but a layman who does not know how the dynamics of the real estate industry work, can even suggest you buy property at a good location.

What makes one location more valuable than others?

When it comes to finding an average price of a one bedroom apartment in Dubai, you will see that prices vary from one place to another and so are the rental prices. Several factors determine the value of properties but it all comes down to supply and demand.

Connectivity…

Connectivity is the commute to work, schools, parks, healthcare facilities, and other key locations in the city and the commute time factors the most, when it comes to choosing a location. If you use public transport, well-kept roads and distance to the public transport make life easier, which eventually increase the value of your property.

Moreover, if you buy a property, where the government has announced to make a new public transport stop, you will see instant appreciation in the value of properties. Moreover, new properties and new transport connections bring new residents in the community, which leads to the increase in other amenities such as grocery stores, parks, restaurants, cafes, and hospitals.

Local amenities…

The quality and availability of local amenities have a direct impact on property prices. It is not wrong to state that easy access to nearby amenities is what makes a location, more desirable and more valuable. Availability of mega grocery stores, restaurants, shopping avenues, and entertainment options are some of the top amenities that people consider, while investing in Dubai properties.

Potential buyers consider all these features seriously because easy access to these amenities can increase the property prices.