While the urbanization process and infrastructure projects create a continuous transformation in big cities and developing regions, the effects of these changes on the real estate market are also remarkable. As of 2024, infrastructure and transportation projects implemented in many developed and developing regions will significantly affect the real estate values in the surrounding area. In this article, we will take an up-to-date review of the effects of urbanization and infrastructure projects on property values.
Effect of Infrastructure Projects on Real Estate Values
Infrastructure projects take various forms, such as expanding transportation networks, improving public transport systems and increasing the accessibility of basic services. Implementation of such projects will positively affect real estate values in the regions in question. As a matter of fact, improving transportation facilities facilitates access to the region and therefore increases the demand for real estate there. In addition, infrastructure projects increase the attractiveness of the region with factors such as landscaping and increase in social reinforcement areas.
Contribution of the Urbanization Process to Real Estate Values
The urbanization process is another important factor that affects real estate values by changing the balance of supply and demand, especially in developing regions. Population growth and urban transformation projects increase the demand for residential and commercial areas in the region. This process, especially when managed in a planned manner, causes real estate values in the region to increase. Urban transformation projects support value increase by renewing old buildings and improving the socio-economic structure of the region.
Projects and Impacts from 2024 Perspective
In 2024, many new infrastructure and transportation projects have been implemented around the world and in Turkiye. For example, expansion of metro lines in big cities, high-speed train projects and smart city applications are among the most prominent examples of these projects. Such projects both provide ease of transportation and encourage regional development. As a result, there is a noticeable increase in real estate values in the regions where these projects are concentrated.
Recommendations for Investors
Investors can make strategic investment decisions by taking into account the effects of infrastructure and urbanization projects on real estate values. Investing early in regions expected to gain value in the future can offer high returns in the long term. In this context, the following suggestions can be made to investors:
- Monitor Future Projects: Follow the regions where new infrastructure and transportation projects are planned. Announcement of these projects may cause an increase in real estate values in these areas.
- Consider Regional Developments: In addition to infrastructure developments, also consider regional urban transformation projects and economic developments. Such developments could significantly impact the future value of the area.
- Think Long Term: Infrastructure and urbanization projects are usually carried out within long-term plans. It may take time for these projects to be completed and their positive effects to be seen. Therefore, consider your investment decisions with a long-term perspective.
- Focus on Risk-Free Areas: Infrastructure projects may sometimes not progress as planned or have the expected impact. Therefore, investing in regions that already have developed infrastructure or where projects have a high chance of success carries less risk.
- Pay Attention to Environmental and Social Impacts: Environmental and social impacts of projects can affect the long-term value of the area. Sustainable and environmentally friendly projects have the potential to become more valuable in the future.
Conclusion
The effects of urbanization and infrastructure projects on real estate values in 2024 offer significant opportunities for investors and residents. The innovations and improvements brought by these projects revitalize the regional real estate market and trigger value increase. It is possible for investors to make the most of this process by understanding these dynamics and making wise investment decisions for the future. Therefore, infrastructure and urbanization projects are likely to continue to offer valuable development opportunities for both individual investors and society at large.
Source: Emlakdergisi / Prepared by Irem Yildiz