Factors affecting the value of property

The value of a property is not fixed; it depends on many factors.

1. Location: nearness to the city centre, market, roads, schools, hospitals and public transport raises value; a remote area gives lower value.
2. Demand and supply: a high demand and a short supply of land or houses increases value.
3. Utility and purpose: the usefulness of the property, the type of use (residential, commercial or industrial) and permitted land use.
4. Size, shape and orientation of the plot: a regular shape and frontage on a main road have a higher value.
5. Physical features: soil, topography, drainage, flood risk, view and environment.
6. Age, condition and life of the building: the remaining life, quality of construction, maintenance and the depreciation.
7. Income (rent): the net income that the property gives.
8. Legal factors: ownership and title, tenancy, restrictions, building bye-laws, FAR, setbacks and taxes.
9. Services and infrastructure: water, electricity, sewage, road access, telephone and internet.
10. Economic conditions: inflation, interest rates, availability of loans, and the general economy.
11. Political and social factors: law and order, development plans, neighbourhood, and future planning.
12. Disasters and risks: earthquake, flood, landslide.
13. Scarcity and fashion; amenities such as parking and garden.