What are the Main Factors That Affect Property Value?
In today’s property market it’s more important than ever to know what are the factors that determine property value. Though a truly accurate valuation takes time and the right expertise to get it right and arrive at an accurate figure, some knowledge on what factors affect the price of property are good to know, particularly if you’re planning to buy or sell real estate in the near future.
1. Location: “Location, location, location”. It’s not for nothing that that phrase is part of real estate conventional wisdom. The location of your property, from the city down to the specific neighbourhood which it is located in is the single biggest determiner of your property’s value. The price of property varies depending on the demand and supply in a given area. Generally speaking, a property located in the core districts command a higher price than similar properties located further away. For example, a studio in Downtown Dubai will be more expensive than a similar one located in International City.
2. Size: The size of your property is the next most important factor when it comes to determining the value of your property. This does not have as much of an effect on the value as the location does. In general, a larger unit can be a bit more expensive, but an increased square footage does not always translate into a premium asking price.
3. Number of Rooms: The number of rooms in a unit does play a big part in the value of a property. It is common knowledge that the more rooms a unit has, the higher the price. However, not all rooms are created equal and it’s important to take into account the size of the individual rooms when ascertaining its value. The number of bathrooms also plays a part in the value of a property, with full bathrooms being regarded as more desirable than half bathrooms.
4. Amenities: When it comes to determining the value of a property, the physical property only makes a part of the final value. Convenience and local amenities are also a factor in setting the final price. For example, apartments in a building with a pool are generally more valuable than a building without one. Facilities such as a building gym, reserved parking; utilities such as laundry services etc. help differentiate your property from similar units and ought to be included in the valuation. However, appraisal is not an exact science and depends on many additional factors such as the type of facilities, extent and overall quality of said facilities.
Looking to buy or sell property? Need to have it properly assessed and valued? Land Sterling’s team of experienced property consultants has nearly a decade of experience in the Middle East real estate market and we’re always happy to help. Send us an email at firstname.lastname@example.org or call us on +971 43 808 707 to get an accurate and timely valuation.