In real estate, location is crucial. It shapes what developers can build, influences living costs for tenants, and drives value for investors. Unlike other factors, land can’t be relocated, and as a result location choice is a critical decision.
In real estate, location is crucial. It shapes what developers can build, influences living costs for tenants, and drives value for investors. Unlike other factors, land can’t be relocated, and as a result location choice is a critical decision.
Location isn’t just about where a property is-it’s about what’s around it. Nearby amenities or infrastructure can boost or reduce property value, known as “externalities.” Positive externalities, like parks, raise value for residential neighborhoods as demand for the service increases, while negative ones, like industrial noise, lower demand and consequently value.
Take a study in 2019 which showed that, for 1 bedroom flats in a neighborhood, proximity to High Voltage Overhead Transmission Lines (HVTOLs) led to a 31.58% value decrease compared to other apartments and attributed it to the HVTOLs constituting a safety risk and the risk of government demolition.
For investors, complementarity of neighboring land uses and forecasting the impact of present and future neighboring land uses on property are key to maximizing returns and value growth.
At UPDC, we’ve honed the skill of forecasting these impacts, ensuring timely acquisition, strong returns and value appreciation. Our recent development, The Hampshire in Sangotedo, Lagos, benefits from positive externalities like Novare Mall and the upcoming 4th Mainland Bridge, driving up property values and are expected to continue doing so.
It’s not just about your neighboring land uses-expert management is essential to staying aligned with evolving trends. Our successful projects, like Pinnock Beach Estate, demonstrate our ability to manage these dynamics and deliver exceptional value. So why not invest with us today?
Co-buying property can be a slog. There will be setbacks and obstacles. To get through the slog, you need to employ a good process and learn to love The Process
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