Does proximity to the new underground station really increase the value of your property by 15%? A well-informed infrastructure assessment is crucial for sales success and investment decisions. Discover which factors significantly shape property value and how to use them to your advantage.
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The topic briefly and concisely
A comprehensive infrastructure assessment considers macro and micro location, transport links, social as well as technical and digital infrastructure, and can influence the property value by 10-20%.
Good transport connections (public transport, roads) can increase property values by 5-10%, while high-quality social infrastructure (schools, doctors, shopping) can increase the value by an additional 5-8%.
Digital infrastructure, especially fast internet, is an increasingly important value factor, with its absence potentially leading to deductions of up to 5%, while positive infrastructure projects can boost the value by over 10% in the medium term.
Wondering how the surrounding infrastructure specifically affects the value of your property? The answer is complex but crucial. A thorough infrastructure assessment reveals how transport links, local amenities, educational and recreational facilities, and digital infrastructure can enhance or reduce the market value by up to 20%. [11] This article guides you through the key factors of a professional infrastructure assessment, showing you how to fully maximise your property's potential and make data-driven decisions for sale or investment. With the right information, you can turn location factors into tangible value propositions.
Basics of Infrastructure Assessment: More Than Just the Address
The evaluation of the infrastructure goes far beyond the postal code. It includes a detailed analysis of all external factors that affect the utility and thus the market value of a property. Good infrastructure can increase the property value by an average of 10-15%. [5] The key aspects include the macro and micro location. [4] The macro location looks at the region or city, its economic strength and demographic development. [4] The micro location, on the other hand, focuses on the immediate surroundings: neighbourhood, street appearance, and accessibility to everyday destinations. [1] A precise infrastructure analysis is therefore essential. This initial assessment forms the basis for any further detailed examination.
Transport connections as value drivers: Accessibility pays off
An excellent transportation connection is a significant factor in infrastructure assessment. Studies show that properties near train stations or public transport stops often achieve prices 5-10% higher. [10] This includes not only public transport connections but also proximity to motorways and well-developed road networks. [8] For commuters, saving just 15 minutes a day can already be a decisive factor. Reducing commute time by 10% can increase property value by up to 3%. The quality of the connection, such as frequency and direct connections, also plays a role. A good transport infrastructure assessment takes these details into account. Therefore, the analysis of transport routes is a central component of any property valuation.
Social infrastructure: Quality of life that determines the price
The social infrastructure includes all facilities that contribute to the quality of life and is an important factor in infrastructure assessment. This includes educational institutions such as schools and kindergartens, medical care from doctors and hospitals, as well as shopping and leisure opportunities. [2] Families, for instance, place great importance on the accessibility of schools; a good school nearby can increase the value of a family property by up to 7%. [6] The availability of parks and green spaces further enhances attractiveness. [7] The following aspects are particularly relevant:
Availability and quality of childcare facilities and schools.
Density and accessibility of doctors, pharmacies, and clinics.
Local supply options for daily needs (supermarkets, bakeries).
Cultural and leisure activities (theatres, sports facilities, restaurants). [8]
Feeling of safety and crime rate in the area. [1]
Comprehensive social infrastructure can positively influence property values by 5-8%. A detailed analysis of the social environment is therefore essential for a realistic assessment. These factors directly affect demand and thus the achievable price.
Technical and Digital Infrastructure: The Invisible Value Factors
Besides the classic factors, technical and digital infrastructure is becoming increasingly important in infrastructure valuation. A fast and stable internet connection is now essential for many; properties without fibre-optic connections or with slow connections can suffer a value reduction of up to 5%. [14] Technical infrastructure also includes the security of supply and disposal (water, electricity, wastewater). [8] Modern digital infrastructure can increase property value by 3-5%. [13] Especially in view of home office and smart home applications, this is a crucial point. A forward-thinking assessment of digital connectivity is therefore indispensable. The availability of modern networks is increasingly expected to become the standard.
Influence of Infrastructure Projects: Weighing Opportunities and Risks
Planned or ongoing infrastructure projects can significantly influence infrastructure evaluations and thus property values - both positively and negatively. The construction of a new underground line can increase prices in the adjacent districts by 10-15%. [9] Conversely, large construction sites or the building of noisy transport routes can temporarily or permanently reduce value. [7] It is crucial to inform yourself early about municipal development plans. [1] You should examine the following points:
Type of project (e.g. transport, supply, commercial area).
Timeframe and duration of construction measures.
Expected impact on noise, traffic, and environment.
Potential long-term increase in value vs. short-term disruptions.
Possible compensations or mitigation measures.
Positive infrastructure projects can increase value by over 10% in the medium term. A proactive analysis of planned projects protects against nasty surprises. This way you can identify opportunities and minimize risks.
The Role of Infrastructure Assessment in Different Property Types
The weighting of individual infrastructure factors varies depending on the type of property. For commercial properties, transport connections for logistics and employees, as well as digital infrastructure, are often the focus; a prime location can enable rental prices up to 25% above the average. [8] For residential properties, social aspects such as schools and leisure facilities are often more crucial. [3] With investment properties, the long-term attractiveness of the location, influenced by all infrastructure components, is crucial for stable rental income and value development. [5] The right infrastructure can reduce the vacancy rate by up to 50%. A differentiated consideration according to type of use is therefore necessary. Only in this way can the full potential of a property be realised through precise infrastructure evaluation.
infrastructure-assessment
Are you facing a sales decision or want to understand the value of your property? A professional infrastructure assessment is complex and requires market expertise. Auctoa uses AI-powered analysis and extensive databases to accurately evaluate all relevant infrastructure factors. Our experts consider over 100 individual criteria for a sound assessment. With an Auctoa assessment, you receive a market-close price evaluation of up to 95% accuracy. Avoid misjudgments based on gut feeling. Get in touch now without obligation or chat for free with our ImmoGPT to receive an initial evaluation. A solid assessment is the first step to your success.
Conclusion: Infrastructure as the key to optimising the value of your property
What is meant by macro and micro location in infrastructure assessment?
The macro location refers to the broader region or city, including economic strength and population development. The micro location describes the immediate surroundings of the property, such as the neighbourhood, streetscape, and accessibility to local destinations. Both are crucial for infrastructure assessment. [1,4]
How do planned infrastructure projects affect property value?
Planned projects can positively (e.g. new underground line: +10-15%) or negatively (e.g. noisy expressway) impact value. Therefore, early awareness of municipal plans is important. [9]
What role does infrastructure assessment play for commercial properties?
For commercial properties, transport connections for logistics and employees as well as an efficient digital infrastructure are particularly important. A prime location can allow rental prices up to 25% above the average here. [8]
Can I increase the value of my property through infrastructure improvements myself?
Direct infrastructure improvements are mostly in public hands. However, you can optimise the value of your property in the context of existing infrastructure through renovations and modernisations that reflect current needs (e.g. suitability for home office through good internal networking). [11]
How does Auctoa assist with infrastructure assessment?
Auctoa uses AI-powered analyses and extensive databases to assess over 100 individual infrastructure criteria. This results in a market-oriented and data-driven price estimate for your property.
What types of infrastructure exist?
There is a main distinction between technical infrastructure (transport, energy, water, communication), social infrastructure (education, health, culture, leisure), and green infrastructure (parks, green spaces). [8,1]
Additional useful links
Statistisches Bundesamt provides comprehensive data and indexes on construction and real estate prices in Germany, relevant for infrastructure evaluation.
Statistisches Bundesamt offers detailed tables on the prices of houses and land, which are important indicators of property value.
Umweltbundesamt publishes relevant materials that illuminate environmental aspects and their impact on infrastructure and property evaluation.
KfW informs about funding programmes for environmentally friendly new construction of residential buildings, which can affect the attractiveness and value of properties.
DIW Berlin (German Institute for Economic Research) provides scientific publications on economic topics that also pertain to real estate and infrastructure development.
Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) publishes studies and data on urban development, spatial planning, and construction research, which are relevant for infrastructure evaluation.
Smart City Dialogue presents model projects and initiatives for the development of smart cities, showcasing future infrastructure trends.
FAQ
What is meant by macro and micro location in infrastructure evaluation?
The macro location refers to the broader region or city, including economic strength and population development. The micro location describes the immediate surroundings of the property, such as neighbourhood, streetscape, and accessibility to local destinations. Both are crucial for infrastructure assessment. [1,4]
How do planned infrastructure projects affect property value?
Planned projects can have a positive impact (e.g. new underground line: +10-15%) or a negative one (e.g. noisy highway). Therefore, it is important to be informed early about municipal plans. [9]
What role does infrastructure assessment play in commercial real estate?
For commercial properties, good transport links for logistics and employees, as well as an efficient digital infrastructure, are particularly important. A prime location can allow rental prices to be up to 25% above the average here. [8]
Can I increase the value of my property through infrastructure improvements myself?
Direct infrastructure improvements are usually publicly managed. However, they can enhance the value of your property within the context of existing infrastructure through renovations and modernisations that reflect current needs, such as home office suitability through good internal connectivity. [11]
How does Auctoa help with infrastructure assessment?
Auctoa uses AI-powered analyses and extensive databases to evaluate over 100 individual infrastructure criteria. This results in a market-oriented and data-driven price assessment of your property.
What types of infrastructure are there?
One primarily distinguishes between technical infrastructure (transport, energy, water, communication), social infrastructure (education, health, culture, leisure), and green infrastructure (parks, green spaces). [8,1]
