There are many different aspects to take into consideration when investing in real estate, but one of the most important is infrastructure. The ability to attract people to a specific destination and give them suitable transport links can not only change the prospects for real estate investment but the whole region as well. So, what should you look out for when considering real estate investment?
Transport links between some of the U.K.’s largest cities and surrounding towns and villages can vary in quality. What you tend to find is that once the property in the centre of a major city becomes too expensive for the mass market, they will then begin to look on the outskirts where in theory prices should be lower. This leads to the expansion of city centres which can often overlap with surrounding towns and villages therefore placing pressure on the local authorities to put in place suitable transport links.
If you sit back and think about it, if people are working in city centres then they will need transport links to accommodation on the outskirts. Without these transport links this could weaken employment prospects and the whole prosperity of the region.
Where there are people willing to spend money you will see an array of local services emerging. Shops, restaurants, bars and numerous other popular destinations will evolve naturally where there is money to be spent. If potential tenants and property buyers have sufficient quality local services on their doorstep then this will certainly encourage them to stay in the area and spend their money. This then leads to natural expansion of the area, more demand for property and hopefully an increase in property prices.
Transport links in some of the more populous areas of the UK have increased dramatically over the years and if we take Central Scotland for example, the likes of Stirling is just 30 minutes from Glasgow, 30 minutes from Edinburgh and 30 minutes from Perth. The amount of ground you can cover across central Scotland within 30 minutes of Stirling will astound you. So, with trains, buses and airports to hand, commuters feel comfortable living in the central belt with access to the major cities and towns.
It stands to reason that growth in population in a specific region will lead to increased demand for property thereby in theory increasing the value of existing property. This may be houses, offices or business premises put the key to any successful property market is population growth and increased demand. At this moment in time many first-time buys are struggling to climb aboard the property ladder therefore it is perhaps more skewed towards demand for rental properties.
While it is difficult to forecast population growth in a specific area with any real confidence, it is very easy to judge the quality of local transport links, local services and how these might impact demand for property going forward. The simple fact is that employment opportunities will attract people, whether directly on your doorstep or within commuting distance of your home, and more employment brings greater spending which attracts more business which can easily become something of a self-fulfilling prophecy. Local authorities will play a major role in many of these elements investing taxpayer’s money on a long-term basis but with a perceived return for the local community.
It may sound difficult to pinpoint an area where there may be future population growth but if you split this down into different elements and review those individually, it is not so difficult.