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Whenever new residential developments are built, many locals fear that their property values, quality of life, and nearby amenities may be diminished or driven down. But do the statistics back up this point of view? What relationship, if any, exists between residential developments and local property prices? Below, these concepts are explored in more detail by discussing three things to know about property developments and their impact on local prices.

3 Things to Know About the Relationship Between Residential Developments & Property Values

1. There Is No Evidence of Long-Term Property Devaluation

Those who live in neighborhoods that have recently erected residential developments have no need to worry. In 2015, a British company performed a comprehensive study on whether new developments pushed down other property values, and they found that, in the long-run, prices are not impacted in any significant way. While some minor devaluation was noted in a few of the cases studied, it was all in the short-term, and property values continued upward growth trends in the ensuing years.

2. Residential Development Can Have a Positive Impact

The findings of the research also found that, contrary to the idea of long-term devaluation, many developments actually contributed positively to the neighborhoods they were in and the property values of the nearby area. Over time, these developments have integrated into the fabric of the community and become selling points for prospective buyers. In a few cases, researchers found that those opposed to such developments ended up purchasing some of the newly constructed homes.

3. Proper Engineering & Planning Are Essential to Building New Developments

residential developmentThe 2015 study also confirmed the importance of proper engineering and planning in home development. Engineers and property planners take both a macro and micro view of development. Yes, they find ways to construct homes that meet the needs of potential homeowners—but they also take into account the social and cultural makeup of a given neighborhood, the amenities it provides, and the opportunities for growth that are present.

 

If you're considering a residential development project, start exploring your options with the civil engineering professionals at Abercrombie & Associates, Inc. Since 1976, they have been serving clients throughout the Cincinnati, OH, area. Call (513) 385-5757, visit them online, or send them a message on Google+ to discuss your plans today.

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