Feb 20, 20By Sam Morales

They say that in real estate, location matters when looking for a property to invest in. But how would one know if the location is the right one? Plenty would say that the location is right if the properties in the area are priced higher than the average market value in the city. 


If you are still in your property shopping phase, here’s how to evaluate a location’s potential to increase your future property’s market value:

1. There is a steady increase in property development.

New infrastructure and buildings in a neighborhood indicate that you are not the only one who has seen potential in the area. Moreover, the developers behind the new infrastructure and buildings also have the resources to research and plan their projects to return-of-investment realization.


But you don’t have to think about doing similar research. Just now that these new developments will help usher in new goods and services that are accessible.


TIP: It can be quite easy to spot new development if you are in the area. But if you cannot be physically in the area, you can always check out real estate news in the area. 

 

2. The location is turning into a major transportation hub.

One criterion of a centrally-located neighborhood is the number of public transportation options. If the location is accessible to jeepney and bus routes, that would be great. Plus points if the location is accessible to major commuter transport systems like the MRT and LRT.


On the other hand, you must also consider a location’s walkability as another mode of transport. Locations with great pedestrian infrastructure such as pedestrian crossings, wider pedestrian and/or bike paths are attractive to people who would like a home that they can make a short trip to and from their office or school.


3. The neighborhood is a local tourist hotspot.

What is a location that is not fun to go around in? This rings true to any other person who is looking to settle in the neighborhood. Fitness enthusiasts will welcome a nearby park or a gym that is five minutes away from where they live. Millennials would rather live near a central business district or a neighborhood that is accessible to urban conveniences such as a shopping mall or a foodie hotspot.


4. The neighborhood is on developable land.

It can be tricky to determine if the location you are eyeing is a “developable” land. The keyword here in finding one, however, is proximity. Locations are highly sought out, even those that have condos for sale or rent higher than the market average, because of their close proximity to major cities. This is because the properties in such locations will remain in demand even in a bad economy.


TIP: Choose a cul-de-sac location. Once seen as land with no prospective future value, they are now most favored by starter families. This is because they are areas in-between neighboring cities that will still provide exclusivity and privacy.

5. The neighbors are younger.

A neighborhood composed of a younger demographic helps keep the location in-demand in the real estate market. Newlyweds, starter to growing families, and yuppies crave physical engagement with the community and will influence the demand for goods and services in the area.

6. The location offers excellent public infrastructure and services.

This can be difficult to find online, but it does pay to check the location’s access to public infrastructure and services. They are, after all, an indicator of an efficiently-run local government.


7. If your home is a short walk to quality schools. 

Any homebuyer who has a growing family definitely wants a property that is close to quality schools. While there might be no available data to back up this claim, common sense will tell you that a property owned near at least a couple of educational institutions have more resale and lease demand.


Looking for a property that is accessible to schools or transport hubs? Choose a property at www.signetproperties.ph and explore the neighborhood using our interactive commute map feature!