INFLUENCE OF LOCATION ON PROPERTY VALUE AND CHOOSING THE RIGHT LOCATION

Learn why choosing the right location is crucial and get valuable tips for making an informed decision. The profitability of an investment property significantly affects the satisfaction of its owners. Although a property's value development depends on various factors, some of which are controllable, the location plays a particularly important role. An often underestimated advantage when buying is the flexibility you have in renting out your property in terms of location - use this advantage wisely to achieve the best possible return.

1. Different Locations

Marbella offers an impressive variety of locations that appeal to every type of buyer. The rich cultural heritage and diverse landscapes reflect the charm of this city as a place to live. Sierra Blanca, one of the most exclusive areas, boasts breathtaking views of the Mediterranean Sea and the surrounding landscape. The Golden Mile attracts attention with its glamour and chic, while Nueva Andalucia captures the multicultural essence of the region with its bustling streets and diverse culinary offerings. Benahavís invites you to delve into history and experience an authentic side of Marbella in a picturesque village. La Quinta, an oasis of tranquility, is surrounded by green golf courses and offers a relaxed atmosphere. Guadalmina entices with charming beaches and Mediterranean flair, while Marbella East exudes a carefree atmosphere with endless beaches and a laid-back lifestyle. La Zagaleta and El Madroñal offer an escape into nature, surrounded by pristine landscapes, unique privacy, and top-notch luxury. The New Golden Mile represents modern Marbella, with contemporary developments and a vibrant cultural life that fills the city with energy and vitality. These diverse locations offer a wealth of opportunities and lifestyles that captivate every visitor and invite them to discover the beauty and diversity of Marbella.

2. What makes a good Location? Can the value of a property be increased based on the Location?

A good location for a property is characterized by several factors that consider both the micro and macro location. The micro-location refers to the immediate surroundings of the property, including the neighborhood, availability of public transport, and shopping facilities. Both objective factors such as the distance to important facilities and subjective factors such as the atmosphere and character of the neighborhood play a role. The macro-location, on the other hand, looks at the larger environment, such as the city itself, job opportunities, and educational institutions in the region, as well as the rural or urban character. Here too, both objective and subjective factors play a role, with historical market data providing valuable information. These data provide insights into population trends, migration patterns, and the gross domestic product (GDP), which indicates the living costs that residents can afford in a particular location. In summary, a good location should offer a good balance between objective and subjective factors in both the micro and macro location. These factors can influence the quality of life, accessibility to important facilities, and the long-term value development of the property.

3. What to consider when choosing a Location?

When choosing a location for your investment, you should consider some important aspects. Here are three tips to help you make informed decisions:

3.1. Clearly define your investment goals:
Before deciding on a location, it is important to clearly define your investment goals. Do you want to achieve high returns quickly or generate wealth through long-term property value growth? It is difficult to achieve both simultaneously, so it is crucial to set clear goals from the outset and focus either on returns or value appreciation.

3.2. Assess the potential of the Location:
In an era characterized by mobility and digitization, the working world and people's living preferences are constantly changing. Therefore, consider how potential tenants want to live today and in the future. What opportunities does the chosen location offer for workers who increasingly work from home or seek more flexible working models? It is important to analyze the potential of the location for long-term housing needs, both on a micro and macro level. Feel free to seek professional support for this analysis.

3.3. Analyze the development of the Location:
Utilize all available information about the location, including historical market data, to identify trends. Look at population development, migration patterns, and the gross domestic product (GDP) to gain insights into the living costs and the attractiveness of the location for potential tenants. By answering these questions and carefully examining these aspects, you can choose a location that aligns with your investment goals and promises long-term success.

4. Conclusion

Overall, the location of a property is crucial for its value and attractiveness. A thorough analysis of the micro and macro location is essential to meet individual needs and ensure long-term success. With a clear understanding of the location factors, buyers can ensure that their investment aligns with their goals and offers long-term value appreciation.


For more information on the individual locations, feel free to visit our blog, where you will find a comprehensive guide to the various environments.


Image: Penthouse Belvederes, BHHS1174