The property market has always been a solid form of investment, with domestic developments guaranteed to increase in value over time. But there is much more to the makings of a successful property development than the establishment of the buildings themselves. Indeed, one of the most important factors in long-term success for property projects is location – but why exactly?
What Makes a Good Location?
Good locations are defined by a number of different characteristics. Naturally, the exact location of a new development needs to suit the requirements of the build itself, but on a wider level your choice of location needs to reflect the wants and needs of your chosen buyer demographic. For family homes, suburban locations with strong transport links and a local school will naturally perform better than inner-city developments in areas with potentially higher crime rates.
Choosing a viable location for your next construction project is not just about creating interest and demand in the short term, though. There are also longer-term impacts associated with location choice that can positively or negatively affect sellers and buyers alike.
For one, all properties enjoy appreciation in value over time – but not all properties appreciate equally, and location is a key factor in this. Larger-scale developments see a wide spectrum of buyers, from individual households looking for a home to high-value investors practicing long-term wealth management strategies. The latter buyers will be looking for significant returns on investment in the long term, which requires some due diligence on regional property value movements.
The difference in value growth is well illustrated by the ONS’ House Price Index, which logs different rates of change between regions of England, let alone between the four nations. According to the March 2022 index, London’s house prices were the slowest to grow, with the East Midlands conversely enjoying growth well above average.
Location as Factor
While location is very much an important factor in the planning stages for a new project or build, it is important to remember that it is not the only factor. Location should absolutely take precedence as a consideration early on but should not be the sole factor guiding the future value of the development.
Building design is always going to be crucial to success in property construction and development, and not solely due to other aspects of buyer demand. The number of bedrooms and the shape of living spaces are of course going to factor into decisions to buy, but building design also takes on another function in today’s economic and environmental climate.
Energy efficiency measures start with construction, and with closer scrutiny on the energy bill costs and pollution alike, new build projects need to meet this scrutiny with effective design. Properly utilising architecture to maximise heat capture and insulation improves the energy efficiency of the finished product, increasing demand while meeting new challenges in the process.