Urban Planning and Its Influence on the Real Estate Markets

Local government not only organizes public services, like garbage collection. Often, it also determines the failure or success of real estate investments. Because urban planning and the success of construction projects can significantly and measurably influence house prices – in both directions.

Urban planning deals with a variety of subject areas, from the ground plan of the city to infrastructure and traffic to public facilities. It decides on the use and development of the individual districts. Anyone living in homes in Dubai is thus directly affected by the decisions of the city planners. This is also noticeable in regards to the price development and attractiveness of the living space there.

We will show you some aspects of urban planning and real estate development that you should look out for when investing in a property. We explain how city planning and successful investing in real estate are related.

Road Access

Connecting to nearby business districts or other major cities can increase the desirability of an object. This is particularly the case in rural or suburban estates offering fast access to jobs and leisure facilities in urban areas. Spain scores in this regard with the longest high-speed rail network in Europe called AVE (Alta Velocidad EspaƱola), which is steadily growing. This opens up new investment opportunities; clever buyers are now investing in picturesque locations along the coast, which will soon be connected to the rail network.

Green Areas

In urban areas, especially in the city center, green spaces are often in short supply. A study from Helsinki revealed that real estate near the inner city parks, therefore, is traded up to six percent more expensive. However, objects on the outskirts hardly benefit from it. Only the properties in the immediate vicinity of the green oases in the heart of the city are affected by the value-enhancing effect.

Sift Through Plans

Before investing in real estate, we advise you to consult the construction and development plans of the respective city administration. Are potential risks, such as floods, considered? Will green spaces be created in addition to the new apartments? Is the transport connection adequately expanded or optimized? Always question which target group the location in question would be ideal for and why.