Home Buying

Importance Of Location In Real Estate

2 FEB 2018

A real estate agent’s common rhetoric is always ‘location, location, and location’ when asked as to what a property should most importantly have. As far as India is concerned, the real estate market is a diverse one when compared to many other countries. To choose a location, any buyer is input with an overwhelming amount of information today, mainly because it is becoming more common to rely on technology for the purpose. In such cases, the capacity of the buyer to choose the best location lies in reading between the lines and understanding the information in depth.

Why is location important when buying a house?

Importance of location in real estate purchase always seems to be overestimated. The reason is that the location is what translates into profitability for the investment. Location, primarily, creates the desire for purchase and the desire, in turn, creates demand which causes a rise in price.

By the time a buyer is trying to identify the location for the purchase of residential or commercial property, it is obvious that he/she is ready to pay up a good amount of saved capital. So it is important that the buyers end up choosing the right location that makes the real estate purchase tick. Whichever be the country of residence, many a time a buyer makes a decision based on the home that they are going purchase and not the area that it is located in. Once the purchase is made, the area will never change. This mistake can cost the buyer a lot.

In case the buyer is looking for residential property, the common factors that are to be checked out are the status of the neighborhood, proximity to facilities and amenities, access to water, safety quotient of the location, views from the property, etc. Factors such as closeness to transport hubs, proximity to major highways, markets and warehouses, etc., have to be considered prior to purchase commercial property.

The price and the location of the property are both important factors. The location ultimately dictates everything else about the property. If the property is situated in a prime locality, it will command a better selling price. The same property in an area that is not so prime will command less price. Though the buyer may end up paying more for the property in a better locality, there are likely to be more profitable options in the times to come. However, if the buyer invests in neighborhoods that are worse off, though the cost may be a little lower, in the beginning, there will eventually be lack of demand, lower rents, and lower prices.

It is important to make a note of a few points about the location of the property. It is a good idea to find out if there are going to be major changes in that area or adjoining ones. This would help to save a lot of heartache in the future. It is good to evaluate the property from a mid- to a long-term view and how the locality is expected to evolve in the period. What may be a relatively peaceful free piece of land today may turn into a bustling multiplex in the next few years. A safe neighborhood may not be safe in the future, so do not place all your bets on one factor.

Any purchase of a home should be backed by a well-thought-of plan with regards to a location. It is a good idea to pay some attention to the fact as to who is likely to buy your home in the future. This makes selling easier. Also, if you buy a home at a location where the pool of buyers is large, it is always easy to sell that home in the future if required. It is also important to make the home purchase in an area that is attractive to the millennials. It has been observed that more of them buy homes instead of renting them.

The Importance of Location in Real Estate – Indian Scenario

In India, it is true that in many cities, speculation has played a role in hiking the prices beyond what most buyers can afford. However, there will come a time when the market has to go back to the basics. The government has put on offer many schemes which include low-interest rates and other incentives. This being the case, the excitement is back in the real estate market.

The real estate market here works on location viability. In the case of residential property, every major tier 1 city has corridors in which the investments are worthwhile. The main factors that drive real estate growth are the creation of infrastructure and the historic growth of price that the locality has seen.

Exponential growth in real estate inside cities such as Bengaluru and Mysuru in Karnataka and Kochi and other cities in Kerala has been unprecedented. Bengaluru in Karnataka attracts the highest prized investments because of its position as the IT hub of the country. The city has seen the rise in real estate investments as people have seen it as the route to the creation of wealth in the longer term. Kochi and other cities in Kerala are making a name as preferred real estate destinations because of their affordability and the massive size of the trained and educated workforce. The second factor is an important one as graduates from the top institutions are absorbed into the numerous IT companies that are present in cities Kochi and Trivandrum in Kerala. This directly increases demand in the housing sector across different price ranges. These cities have micro markets which make great locations for real estate investments. These can be the best investments if the size and location are chosen appropriately.

Now that there are fewer speculators in the residential real estate scene, price corrections have happened in some places. Therefore, if a specific location is in a growth mode, it still pays to invest in the location. Factors to be checked out to make the investment a viable one are the availability of infrastructure, proximity to workplaces, shopping malls, schools, and healthcare facilities.


If at all you are stuck at a point where it is difficult to evaluate a real estate property, the best thing for you would be is to go back to the basics. Take a deep look at the location. Most likely the problem will be solved right there.

Also if you are looking to buy a flat in Kerala, then do visit Confident Groups property locations in Kerala :

Author - Confident Group

As the most trusted real estate brand in the nation, we at Confident Group strive to create a positive, smooth and transparent medium for potential home buyers with anything and everything related to home purchase. We provide informative and engaging articles which cover useful details across many verticals from the real estate sector. Our 2-decade long expertise in building infrastructure projects across Kerala and abroad backed by the trust of over 10,000 customers earned us the reputation of being the best as a real estate brand in Asia. We hope that our blogs will help in translating our experience for the prospective buyers who are looking for their dream home.


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