Casanova Brooks
Casanova Brooks

Licensed Agent

Why Location Is Key to Valuable Real Estate


Table of Contents

You’ve heard it before, and you’ll hear it again. Location is key in real estate. Some say that the most valuable thing about your home isn’t the size or style of the property itself but, rather, where it’s located within its neighborhood and community. 

Location can spell the difference between whether or not your home is worth more than what you paid for it. Keeping this in mind will aid you in making more informed decisions about where to invest your hard-earned money.

You can read this article about finding the right neighborhood before sealing the deal. And, the rest of this article will tell you why location is the real deal-breaker when it comes to real estate investments. So, read on!

1. Potential Future Appreciation Of The Land

Property Value Why Location is Key to Real Estate

The location of the property directly affects the price of the land in the future. People want to settle in a place they know will have social amenities, good infrastructure, and higher demand.

Therefore, as a client, you should ask yourself the question, “Are there factors or government plans that’ll cause the land to appreciate over time?”  If your answer is no, it might be wise to reconsider your decision as it may mean you’re wasting your hard-earned cash and time.

As an investor, you should aim to purchase land with a guarantee of appreciation by a certain time. You’ll be able to know this by following the growth trend in land appreciation in that area to ascertain whether it has the potential or not.

You should always consider the potential for sale while purchasing land; therefore, look for those whose value is expected to appreciate with time.

2. Proximity To Infrastructure And Social Amenities

Infrastructure is an important factor when it comes to determining the value of the land. Services and facilities, such as sewerage systems, good roads, transport networks, electricity, and water availability, are just some of the amenities that determine how much you pay for your land. These infrastructures may come with a bigger price tag, but in most cases, they can be well worth it because they add value to your property.

Even though these infrastructures may come with a bigger price tag, the value you can gain from having a property in such places is immeasurable.

Accessibility to basic social amenities is also a factor in the value of a property. These factors can define how valuable property might cost in an area; clients want easy access to basic social amenities; hence, making the value of locations with such features higher. The quality of life in any area is affected by its proximity to these facilities or the lack thereof, determining its value and ultimately limiting who’d want to buy real estate there.

3. Security Of The Area

Security is one of the most significant determining factors in real estate. It’s an important factor for clients and residents alike, who want to live in a place where they feel safe from theft and crime. A neighborhood with high levels of crime is not only unsafe, but can negatively affect the normal functioning of society as a whole. 

There are many ways to determine whether or not an area is secure, but one thing that investors look for is proximity to a police post. If you’re considering investing in a property somewhere, make sure it has nearby access to law enforcement so that you don’t have to worry about any potential problems arising down the line.

Security of Area

4. Demand And Supply Function

The demand for land is a function of population growth, income, and economic activity. Income increases with significant demographic changes over time. The more people are added to an area, the more they need to be accommodated. 

This means there’s an increase in economic activities when the population of an area increases. This directly increases the demand for land and properties. The anticipation of high yields may also induce false scarcity of land, therefore, causing economic values of land to increase.

Therefore, when investing in real estate, you can try to predict how the demand for properties in a particular area will be in the future. A good tip is to look at the population trend in the area in the last 10 years.

If it increases steadily, the area will be a prime real estate location in the future. However, if people are moving out of the area, then you shouldn’t jump into investing in the location immediately.


When choosing sites for real estate development, it’s important to understand the surrounding neighborhood completely. If you’re looking for a place to invest in and make money, consider your property’s location before making a final decision. Your home location can affect many aspects of your life, including convenience and safety.

casanovabrooksCasanova Brooks is a real estate entrepreneur. With a background as a licensed realtor at Berkshire Hathaway and currently serving as a Change Agent at eXp Realty, Casanova brings a wealth of expertise and experience to the table. Beyond real estate transactions, Casanova is a seasoned motivational speaker, author, and podcast host. His book, “Real Estate: Play the Game Like the Winners,” reflects his commitment to sharing insights and strategies for success in the ever-evolving world of real estate. Join him on his journey as he continues to make waves in the world of real estate and beyond.

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