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Importance Of Location In Real Estate

Importance Of Location In Real Estate

Importance Of Location In Real Estate

When planning to buy a house, what is the first thing anyone will notice or take into consideration? Location, price and the builder right. Yes. location is the first thing that most of us will consider, before buying any property. The location is the only element that never changes but all the other elements such as the building’s exterior interior or amenities and the structure can also be changed. Most of the time, finding a lovely home is not a problem. But finding a home you like in a good neighbourhood is very difficult. Suppose you don’t find a good house in a good locality and if you are planning to invest, it is never a good idea.

When compared to the real estate markets of many other nations, India’s is a diversified one. The Indian real estate market uses a lot of technology. Buyers today are loaded with information, just with a touch of a finger. Due to the excessive use of technology, making a final decision about the location or anything else is becoming very difficult. If you are in a dilemma about making a real estate investment or about the location, go through the post below.

Why Is Location So Important While Buying a House or Making a Real Estate Investment?

The real estate market has grown so much that the speculative price increases have caused the majority of buyers to think twice before investing. The viability of the location is key in the local real estate market.

Every city has a top residential gated community, where the investments are profitable. The profitability depends on the locality, neighbourhood, the appreciation in the last year, infrastructural development and many other factors.

In cities like Bengaluru and tier 1 cities, real estate has experienced unprecedented exponential growth. Amidst the covid 19, the country has seen rapid growth in real estate, especially Bengaluru, due to its status as the nation’s IT hub. Bengaluru draws the highest real estate investments. Bengaluru, in the Indian state of Karnataka, draws the highest-valued investments. As more people have come to realize that real estate investing is a sustainable route to wealth creation, property investments have grown in the city.

So, before investing, think about the following location factors if you’re planning to buy a home or make a real estate investment.


A secure Neighbourhood

Invest in a neighbourhood where you can see the future, not one that is good. Do your research on locality as well, but keep in mind that the majority of the best areas will require more expensive investments. You want a neighbourhood that is just behind the best for the best return on investment. Anyone who is not much experienced in the real estate market, says investing in a good locality. Many real estate agents will advise you to “buy in a safe locality,” and while this advice is sensible, it ignores the basics of real estate investing. Just because a neighbourhood is safe now doesn’t guarantee that it will remain so in five years. While it’s important to think about safe neighbourhoods, it’s also crucial to consider where this neighbourhood will be in five years.


For many home buyers, short commutes to work are the cherry on top. The commute time is a consideration when selecting a location, regardless of whether you plan to drive, bike, take public transportation, or even walk. If you purchase a home in a major city near a metro station,  you will experience immediate appreciation once that train is operational.  Additionally, a metro station will likely attract other neighbourhood amenities like grocers and eateries. Because time is the most valuable resource in the world, humans will always pay to save time. When choosing a home’s location, being close to work is essential. For this reason, areas near highways, trains, or other convenient modes of transportation always seem to appreciate more quickly than those somewhere further away.  People adore the thought of being able to stroll to work, the grocery store, dining establishments, and other nearby amenities. The closest to a major thoroughfare or public transportation is the best location for convenient transportation. Living downtown is typically a great place to be able to walk everywhere. Being close by and having quick access to public transportation are two qualities of a good location. Verify the availability of transportation options and the distance to train stations and airports before making real estate investments.  Property prices are also impacted by the distance to transportation hubs.


Future amenities are just as important as those that are available now. Plans for new civic infrastructure, including public transportation, schools, hospitals, and other facilities, can significantly raise local property values. Property values can also rise as a result of commercial development. If any new public, commercial, or residential developments are anticipated, try to learn about them before starting your search for a home and think about how they might affect the neighbourhood’s appeal.

Good Schools

Making the location of your home heavily influenced by the schools, especially since the much younger generation is buying homes to start families and care about the quality of the local schools. The accessibility of schools close to a family’s home is a factor that is very important to them. Additionally, the proximity of schools has a positive impact on property value growth.

Infrastructure & Amenities

Real estate costs in the area are directly influenced by neighbourhood amenities. Some of the top amenities people look for when buying a home include grocery stores, restaurants, shopping, and entertainment. Buyers prefer these amenities to be accessible within a 5–10 minute drive. The value of your property will go up if the house you’re buying is located a short distance from most of these amenities. Especially health care centres and convenience stores should be located within 10 min Distance.

How Do Values Change Based on Location?

Due to the influence, the location has on how desirable a home is, the location has the biggest impact on home values. Homes are conveniently located near places like the market area, the airport, shops, and more! Your location is better and your home is more likely to increase in value the closer you are to the convenient hot spots. One reason why the location has such a significant impact on home values is that they aren’t producing as much land as they once did. Because you’re looking for capital growth and rentability when buying real estate as an investment, location is always going to be your top priority. The easier it is to rent out the home and the more money you can make each month, while also enjoying great appreciation, the better the location. Catch the locality on its upswing early to gain the most appreciation from it.

If you are a first-time home buyer, deciding between the house and the location becomes difficult. But my opinion is, When it comes to property value, location is more crucial than the house. Don’t jump at a house that is outside of your preferred area, it often takes patience to find a home you will love in the right price range. The location cannot be updated, but a home can always be updated and improved. People are constantly motivated by their environment. When purchasing a home, make sure the location is your top concern. 


Going back to the fundamentals is the best course of action if you find yourself in a situation where it is challenging to evaluate a real estate property. Examine the surroundings carefully. Probably that’s where the issue will be resolved. If you have read the post, let me know in the comment section what is more important to you, your dream house or the location?

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