Real estate is an investment that usually increases in value over time. However, the value of real estate can change depending on various factors, so the decision to buy it should be carefully considered. In this article we will discuss what factors affect the value of real estate.

1. Market situation

One of the main factors affecting the value of real estate is the market situation. When there is a high demand for real estate in the market, prices tend to rise. This is due to the lack of supply of real estate, which leads to an increase in prices. On the other hand, when there is a lot of real estate on the market and few people interested in buying, prices tend to fall.

At present, real estate prices in the Polish market are expected to fall, due to rising interest rates and the difficulty of obtaining financing in the form of mortgages. In contrast, it can already be seen that the downward trend in real estate prices is unlikely to be experienced any time soon. Contributing to this is the fact that the number of construction starts for both apartments and houses in 2022 was more than 30% lower than in 2021 (data from the Central Statistical Office). What does this mean? It means that developers and investors have paused their investments, a large part of them have not been started. This will contribute to a shortage of products in the real estate market in the near term. On the one hand, the lack of housing, and on the other hand, help from the government with obtaining financing for the purchase, will increase demand, and this will translate into higher prices.

2. Property location

The location of a property is one of the most important factors affecting its value. A property located in an attractive location, near shopping centers, schools, public transportation stops, with good access to roads and highways, will cost much more than one located on the outskirts. It is worth paying attention to the development plans in the area, such as planned construction of highways, shopping malls or housing developments, which can affect the value of the property.

3. Technical condition of the property

The technical condition of a property is another important factor affecting its value. A property in good technical condition, with new installations, windows, doors, and well finished, will cost much more than a property that requires complete renovation. It is worth paying attention to the quality of materials used to finish the property, such as floors, tiles, and bathroom fixtures.

In conclusion, before buying a property, it is worth carefully analyzing its location, technical condition and the situation on the real estate market. It is also worth paying attention to the cost of maintaining the property, such as taxes, utility fees, the cost of maintaining the garden, or the amount of rent. This will avoid unpleasant surprises associated with owning a property.