Location is arguably the most important factor for homebuyers looking to purchase a condo. It is what brings value to a property and creates desirability among potential buyers. According to the Pennsylvania Association of Realtors, 34% of new homebuyers chose their home based on location alone. Unlike the interior of a condo, a prime location is something that cannot be changed. It is a long term investment that many buyers are willing to pay more to get. The question is, how do developers and builders determine the right spot for their next condo project? It comes down to two major considerations: neighborhood and convenience.
Vibrant communities appeal to buyers
Finding the right neighborhood is a priority for condo buyers. They are looking for a location that fits their current and future needs. Young families are looking to be in safe and secure neighborhoods with low crime rates that are also in good school districts. The better the school district, the higher the value and potential resale. Buyers of all ages want to spend time outdoors and interact with neighbors. Therefore neighborhoods offering a variety of amenities including recreation, nightlife and entertainment are highly sought after. When constructing a condo project, developers and builders should emphasize the proximity of local social landmarks to help attract and retain potential buyers.
The power of convenience and walkability
Convenience and walkability are key factors for buyers when evaluating a suitable neighborhood. Condo buyers, especially those moving from the suburbs to the city, are looking to be in walkable communities where they can live, work and play. Properties that are near the best retail districts, public transportation, dry cleaners, hair salons and trendy restaurants and bars are in high demand. A 2017 report from the National Association of Realtors found 53% of potential homebuyers were satisfied living in neighborhoods with smaller properties if it meant they could walk, rather than drive, to stores and restaurants. Of the residents polled, those in walkable communities reported being happier with their overall quality of life. Major U.S. cities such as New York, San Francisco, Boston, Chicago and Philadelphia are ranked as the top five most walkable cities, a stat local developers can leverage during the sales process. By choosing locations that offer convenience and walkability, developers and builders can exceed condo buyers’ expectations and command higher prices.
Location red flags to avoid
Across the board, there are a few key characteristics that deter potential buyers. These are location red flags that developers and builders should recognize and avoid.
- Steer clear of high-crime locations. Residents want to feel secure in their homes and do not want to live in fear.
- Condo properties situated near railroad tracks can also decrease desirability. These locations often come with excessive noise which may frustrate residents.
- Economically depressed areas can also drive buyers away. If neighboring properties aren’t well maintained or local storefronts are vacant, buyers may think twice about moving in.
Before committing to a location, it is important that developers and builders become experts in the prospective area and its surroundings. They should exercise due diligence by talking with local businesses, studying the land, and researching the neighborhood, its demographics and its amenities to ensure the location fits the target buyer. Confirm the property is centrally located and within walking distance to points of interest. Check out the property during various times of the day to get a feel for the energy of the neighborhood.
Remember, a location sets the tone for the entire project and determines its success or failure, so it is crucial that it checks off all the boxes. Once developers and builders find an ideal property, the real work begins. Be true to the neighborhood’s aesthetic, ask for local residents’ input and create a condo project that not only fulfills a need but adds value to the community.
