Whatever type of real estate, whatever part of the world and whatever investment timescale you have there are more than enough options in the world of real estate. There is quite literally something to suit every investment strategy and every real estate taste. However, have you ever sat back and wondered what really makes a property market? What adds to the longevity of investing in real estate in a particular area of the world?
A vibrant employment market is the key to any local economy which is also the key to any local real estate market. The ability to attract a workforce which will spend money in the local area, a need for accommodation and investors able to provide private rental accommodation add to the longevity of a property market. While there are some exceptions, such as holiday homes and student accommodation, the majority of growing real estate markets are centred round a growing business community.
One of the vital elements of the property market jigsaw is local services which include transport links and as well as business services. The easier it is to access a specific area the more opportunity for businesses to grow which will attract new employers, new employees and demand for property. This is why projects such as the planned high-speed rail link could potentially be a game changer for those along the route. Many people underestimate the attractions of local services for businesses and property investors but they are as much a vital element as employment.
The right property mix
Each and every one of us is very different, we have different tastes, different likes and dislikes and this is reflected in our choice of property. This is why it is essential to have a mix of property available in vibrant employment areas to catch as many people as possible and to attract as many investors as possible. How boring would the world of property be if we all liked the same type of property, all had the same level of funds available and took away any creative thoughts we had?
Support of local authorities
Local authorities have a direct link to investment in local services as well as the ability to attract new employers and new employees to an area. Many local authorities will use tools such as tax breaks, government grants and other similar funding options to attract new business which hopefully kickstart the local economy to grow naturally. There is also the issue of planning permission because not all local authorities are “investor friendly” when it comes to the world of property development. It is therefore vital that local authorities acknowledge their role in the real estate market, employment sector and in attracting new investment to their region.
It is very easy to forget what actually makes a property market because location, location, location is mentioned time and time again. There are other elements such as employment markets, local services, the right mix of property and the support of the local authorities. Each of these is part of the backbone to a successful local property market and when one element falters and fails this can have dramatic consequences.