Location factor offers resistance to house price pressure

The quality of a neighborhood, which depends on factors such as proximity to squares, parks and urban woodlands, can raise the price of a residence by up to 34 percent above the average rate, according to a study by the Bank of Greece regarding the impact of green spaces on housing rates. The second-most important factor in price determination is the quality of the natural environment, which can result in an increase of up to 12 percent on the going rate. The research was aimed at recording how significant location is in the determination of a residence’s price. On the other hand, in an exception to the market’s general rule, access to public transport does not push prices up by any significant degree in the capital. Buyers appreciate the surroundings of a property more than proximity to public transport. The survey found that the above factors account for two-thirds (67 percent) of the formation of house prices, with the remaining 33 percent concerning the particular features of a house, quality of structure and energy efficiency. Therefore houses with a favorable environment are more resistant to pressure in times of crises than properties in other areas.

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