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Location of the property: a decisive factor in the purchase

Anyone looking for a new property is quickly faced with the question: should it be located in a residential area on the outskirts of the city, in the city center or in a rural area? The location of the property is a decisive factor for its price. The better it is, the higher the value of the land and the house . But what does the location of the property actually depend on?

The location of the property determines its value

Location of the real estate is crucial for purchase

Although various factors have an influence on property valuation, its location is a particularly central aspect. In Brandenburg an der Havel, for example, the decisive factor is whether the property is located near water or in a more rural area. The influence on the price should not be underestimated here, and in this case it is advisable to consult a real estate agent from Brandenburg.
In addition, such experts take into account the condition as well as the equipment of the property. Nevertheless, the following applies: A poor interior finish in a better location is always preferred.

Macro or micro location: That is the difference

Macro location of the property in which district it is located

Two factors are particularly important in real estate valuation. One is the micro-location, the other the macro-location. In combination, they determine an important part of the value of the property.

Macro location refers to the location (region, city, neighborhood) of a house. Also important is whether the location is central or whether the property is on the outskirts of town.

The micro-location, on the other hand, evaluates the neighborhood. Are there green spaces nearby? Are important points of contact within easy reach? The surrounding buildings also count as part of the property’s microlocation.

Residential location: These categories exist

Residential location various categories neighborhoods with houses

After the evaluation of the house or apartment location, the property is categorized. There are the following four categories:
– Simple location
– Average location
– Good location
– Best location

For commercial real estate, on the other hand, it is categorized between 1A and 2B, with further subdivision possible.

These factors influence the value of the location

Value real estate purchase important factors such as infrastructure


A well-kept environment, a popular residential area and a good infrastructure characterize an excellent real estate location. This includes different criteria.

– A good local infrastructure.
– The local or national importance of the location.
– The image factor of the area.
– The local security with regard to natural disasters.

Since all these points have a significant impact on the value of the property, the location is in most cases more important than the building itself. If the location is poor, the property on the site determines the price that can be achieved.

Rental prices, standard land value and market value

micro location of a real estate parks and development in big cities

Important sources of information for assessing real estate are the rental price index, the standard land value and the market value. These values refer to both the micro and macro location.

– Rental price index: The rental price in popular districts is significantly higher than elsewhere. It provides information about the value of the property in relation to its micro-location.
– Standard land value: This standard value represents the price of land and is a further indication of the location value. Since it is updated regularly, it can constantly evolve.
– Market value: This describes the price that can probably be achieved on the market. It combines the micro and macro location as well as the condition of the property.

What is a poor property location?

bad property location how determined tips


A simple or poor property location is primarily indicated by external features. This includes, for example, an unkempt streetscape, inadequate infrastructure and dilapidated buildings. But also when the construction constricts its inhabitants or there are environmental pollutants that are hazardous to health, we speak of a bad location.

Investing in real estate: Here, too, location counts

Houses and dwellings are interesting not only as housing possibility, but likewise as investment. In both cases, the assessment of the location is an important principle of the general evaluation. Anyone aiming for a long-term investment should therefore pay attention to an ideal location value. Both the micro and the macro location of the property must be taken into account.