Models for predicting property values continue to evolve
With the exception of the property itself, location has always been the most important factor when determining a property’s value. However the models of what constitutes 'desireable' continue to evolve.
The traditional model predicts that land closest to the city centre has the highest value. As with Edinburgh, cities developed around a central port or railhead, and land values grew as demand outpaced supply. Business and residential users competed for the limited central space, and hence bid up central land prices.
More recently however, central city congestion and crime have increased residential movement to the suburbs. Today, shopping, restaurants and entertainment can all be found in the suburbs, and now, with ample facilities and new shopping outlets many people commute to the centre only to work.
Many businesses have moved their operations out of town shopping concepts such as Livingston Designer outlet or the Gyle to take advantage of lower land values. Contrary to this argument is of course the regeneration of our inner cities and the unique status of Edinburgh's New Town.If location is the biggest influence in property values then what is it that makes one area more appealing than another?
Finding out what your neighbour sold for is becoming a popular guide
In the absence of a systematic way to value location, property solicitors have resorted to the market sales approach comparing a property to a similar one which has recently sold on the market. This practice raises questions about whether trends in higher property values for various areas will continue beyond current speculative cycles. (For example, trendy locations such as Forth harbour may peak in value and then decline as a new area catches attention). To find out how much your neighbour sold for visit How much did it sell for?
Location, location, location
There are a number of factors which influence property prices. 'Desireability' is crucial yet hard to define, so here we list a number of the key motivations for buying into a popular location.
Factors which make a location desireable
- Reputation
- Possibility of becoming a hotspot
- Executive accommodation
- School catchment area
- Transportation links
- Vibrance and its relation to the economy
- Character, design and degree of planning
- Facilities - shops, restuarants, wine bars
- Sports & Leisure clubs
- Hospitals
Factors which lessen desireability
- Run down or derelict buildings
- Perception
- Crime rates
- Underperforming schools
- Late licence or takeaway venues
- Flight paths
- High unemployment levels and dubious neighbours
- Busy roads and rail lines
- Mobile phone masts
If you are unfamiliar with East Central Scotland then seek advice through our ESPC solicitor network. With local knowledge they will quickly brief you on the reputation of your preferred location.
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