How does infrastructures bring value appreciation in real estate?

Manila-North-Road Aerial shot

The fair market value of any real estate including various kinds of residential units like house and lot, and condominiums, is affected by a number of factors. To name some, there is the location of the property, and amenities available. Among all factors, one that has a great impact is public infrastructure. Through this article, learn about how these infrastructures possibly affect the value of a real estate property.

What are public infrastructures? 

As the Philippines continues to grow, the demand for affordable house and lot properties increases. With this in mind, it is important to consider the role of public infrastructures in driving the appreciation of real estate market value in the country. 

Public infrastructure refers to the services, facilities, and amenities that are provided by a governing body to its citizens. These include roads, bridges, airports, seaports, water storage facilities, and electricity transmission lines. 

From road networks and public transportation systems to healthcare facilities and schools, these infrastructures have a direct influence on the property market, making them a key factor in determining the worth of house and lot units.

The role of infrastructure in real estate

Infrastructures such as roads, bridges, power lines, and other utilities are often overlooked when it comes to the real estate market. But, the effect of infrastructure on real estate value is truly profound. A good infrastructure not only adds value to properties, but it also makes it easier to commute, making people more likely to buy an affordable house and lot.

For buyers, infrastructure also brings convenience, allowing them to access basic amenities and services faster and easier. It gives them access to markets, schools, entertainment centers, and public parks. This makes real estate investments more attractive and can significantly improve the quality of life in any community.

Homeseekers, who also consider themselves investors, are also increasingly considering the influence of infrastructure when looking for new properties. The presence of an efficient road system and other amenities increases their chances of getting higher returns on their investments. On the other hand, inadequate infrastructure can drag down real estate prices and decrease its marketability.

Overall, infrastructures are essential for the success of any real estate investment. They add value to a property, make it easier to access basic services and amenities, and ultimately increase its marketability. For this reason, it’s important for real estate investors to carefully consider the current state of infrastructure when evaluating properties for investment.

Read Also: Infrastructure developments to drive value appreciation in BRIA Homes

The impact of infrastructures on real estate market value

Infrastructures are vital components in any nation’s economic development. In the Philippines, infrastructures, such as transportation networks, roads, bridges, seaports, airports, and even public markets, are some of the essential elements that contribute to the growth of the real estate industry. 

The presence of these infrastructures increases accessibility to different locations in the country and makes it easier for people to find their homes and work of choice. When infrastructures are well-developed, it can result in a steady increase of real estate values. This phenomenon is known as “value appreciation” in the real estate industry.

For instance, when there is a new highway constructed in an area, it can cause the prices of nearby houses to increase significantly as access to the location becomes much easier for potential buyers. This will make it much easier for people to purchase an affordable house and lot and benefit from the value appreciation.

Moreover, when existing infrastructures such as roads and bridges are improved, it can also cause a surge in real estate market value. People would be more interested in investing in a house and lot in a particular area knowing that they can easily access various services and amenities through these infrastructures. 

Read Also: The Effect of New Infrastructures on the Economy and How Can It Provide Better Jobs for the Public

The types of infrastructures that affect real estate prices

The effect of infrastructures on real estate values should not be underestimated. Generally speaking, when a locality has good public infrastructures like highways, airports, transportation, utilities, and telecommunications, it can have a positive impact on the value of real estate in that region. 

Below are a few of the infrastructures that are highly sought after to increase the fair market value of any real estate.

1. Highways

Highways provide direct access to various points within a city or region, making it easier for people to travel. This can lead to an increase in the demand for real estate in that area as buyers are looking for easy access to highways.

Read Also: Major Road Infrastructures Set to Boost Demand for Bria Homes’ Developments | Binondo-Intramuros Bridge Now Open to the Public

2. Airports

Airports also help boost real estate values. When an airport is built in a city, it opens up the city to more international travelers and investors, which can result in higher demand and prices for local real estate.

Read Also: What to Expect from The New Bulacan International Airport?

3. Transportation

Good public transportation systems such as subways, trains, and buses are important factors in real estate values. Having access to efficient public transportation means that people will be able to get around easily, increasing their chances of finding a suitable property in an area.

4. Utilities

Public utilities such as electricity, gas, water, sewage, etc., are essential for the functioning of any city. By having reliable public utilities, buyers will feel more secure investing in the area as they know that these basic needs will be met.

5. Telecommunications

Finally, telecommunications play an important role in the value of real estate. Good internet and mobile network coverage can make a locality more attractive to potential buyers as it allows them to stay connected and do business online. With the current digital world we live in, this is becoming increasingly important when it comes to evaluating real estate values.

Read Also: What will happen if Public Transportation in the Philippines becomes Privatized? | Fare-Free Public Transit in the Metro: EDSA Bus Carousell and other Rail Lines

Infrastructures and Real Estate Value in the Philippines

The presence of public infrastructures can significantly influence the value of properties and houses in a given area. People will be more likely to invest in an affordable house and lot when they know that they can easily access important services and amenities through the local infrastructures. Infrastructure also improves property values by adding value to the land which increases its economic productivity and allows owners to achieve higher returns on their investments than they would have if there were no infrastructure.

The Philippine government is investing heavily in infrastructure projects across the country. These projects are aimed at improving connectivity and access to essential services, and they have the potential to have a positive effect on the market value of real estate in these areas. 

Investors should keep an eye out for developments such as these, as they could provide an excellent opportunity for long-term capital appreciation. Given this, it is high time now to look for and invest in real estate including residential units and soon harvest its value appreciation.

Are you looking for residential subdivisions that are strategically located in different ideal locations in the Philippines? BRIA Homes’ projects and developments are surely the one you are searching for! Interested? Contact our able agents and brokers or visit BRIA Homes’ Official Website and start your journey with us!