5 Ways To Spot Up-and-Coming Investment Areas
What is the most crucial aspect of property investments?
Every real estate professional will tell you, it’s “location, location, location.” Believe it or not, location is the most important aspect to think about when investing in real estate.
While there’s no simple & defined method to choose a location or area where there is potential to find house price growth and high yields, there are a few indicators and patterns that might help you assess whether a location is on the rise.
Here are the top five things you should watch out for to identify an up-and-coming property region.
Youth & Property Hotspots
A large influx of young people is one of the earliest indicators of a region’s resurgence. Young professionals in their twenties and thirties generally set the trend when it comes to the next great real estate investment locations.
This tendency has already been observed in some of London’s popular neighbourhoods. Also, Birmingham and Bristol, which evolved swiftly to become one of the most desired cities to reside in the UK. And northern cities such as Sheffield, Leeds, and Manchester as a result of youth migration from London.
Young people have smaller budgets but yet desire a good quality of life, and they gravitate toward locations that are on the verge of development. Services and amenities, such as coffee shops, supermarkets, bars, and restaurants, tend to develop around new residents as they move in. As a neighbourhood’s popularity rises, rents and home values increase.
Seeking the next great location to invest in real estate? Follow the young folks to the next trendy property market.
A Surge Of Businesses & Property Values
When medium to large employers migrate or relocate to a region or city, this is an indication that property values may grow and the region is on the rise. Businesses are likely to hire or relocate employees, resulting in a rise in demand for housing, which drives up property prices.
As a result, more people are likely to contemplate relocating to the area, which will continue to increase housing demand. One example is the BBC’s development within Manchester MediaCityUK, which continues to increase demand for local and regional real estate, particularly in the Salford region.
“More people are likely to contemplate relocating to the area, which will continue to increase housing demand.”
Redevelopment & New Investment Areas
Infrastructure and amenity investments are a strong indicator of a region’s potential for growth. In London, for instance, investments are reshaping multiple neighbourhoods.
The City is investing $190 million in projects that will increase London’s desirability as a place to live, resulting in an influx of new residents and a rise in property values.
Most councils publish area regeneration plans, it is worth keeping an eye on. Improvement work typically focuses on housing, sustainable transport and high streets.
There are long-term plans that help revamp the city and attract locals and tourists.
Prospective Property Locations & Amenities
Areas that are well-served by facilities, such as stores, schools, and supermarkets, may be indicative of a neighbourhood’s desirability. A neighbourhood’s desirability to renters and those searching for a buy-to-let property is likely to increase if its amenities are within walking distance.
Cities and towns as a whole are experiencing a similar pattern with regard to public amenities. If there are convenient amenities nearby, such as a transport hub or a new retail sector, the location is likely to become a residential hub.
A further indicator is the amount of property investment agencies in the vicinity.
If there are a few running in the region, this indicates that property price growth is expected in the near future.
Transportation & Real Estate Locations
A growing number of connections or expanding transport links is another technique to identify locations with rising property values. For instance, if you’re looking for a home or property in London, it’s a good idea to examine important transport links and trace them to more distant neighbourhoods. A few stops from major transportation hubs or stations is an area where real estate prices are likely to increase.
In the next few years, property values are anticipated to rise a few stops further out, whether on a tram or bus route. Especially as individuals migrate to less-priced places that nevertheless offer convenience.
“In the next few years, property values are anticipated to rise a few stops further out, whether on a tram or bus route.”
How Do You Locate A Property With Potential?
An investor must be confident that any given property has the potential to grow. Here are some key factors you must consider:
Location of the Property
Location is one of the most crucial elements to take into account when house-hunting. Consider the proximity of public transportation, conveniences, business centres, and schools. All of these indicate that the property’s location has a high potential for price appreciation.
Type of Property
Focus on the property structure. Ensure that the structure has the proper skeleton, even if the appearance is imperfect. This may be made into an ideal investment or buy-to-let home with minimal effort.
You have the choice between apartments and houses and what size is suitable. When it comes to apartments, 1 bedroom apartments are preferred by couples. Whereas, young individuals and families usually choose to go for 2-bedroom or 3-bedroom apartments.
1-2 bedroom flats are usually closer to the city centre and houses are located in more residential suburbs.
Outdoor & Storage Spaces
Demand for outdoor space is higher than ever. Consider gardens with high levels of seclusion. Perhaps a garage or additional living space might be added to the property.
There are no guarantees when it comes to identifying an up-and-coming property investment area. However, patterns and trends might serve as useful indicators. Whether monitoring incoming investment, observing where young professionals are migrating, or taking amenities and transportation into account. These subtle and not-so-subtle hints will assist you in narrowing your search. To learn more about emerging property investment areas, please get in touch with our team.