How does Social Infrastructure Contribute to Capital Growth?

Social Infrastructure, A Fundamental Aspect

Social infrastructure is a fundamental aspect to analyse before diving into a property purchase because quality amenities within a considerable distance will influence the value of a property. To help illustrate the importance of social infrastructure, let us dissect two scenarios: first and foremost, if you choose to purchase a property in an area decked with vacant stores, dilapidated streets and away from public transport, it is unlikely that the property will increase in value, unless a large-scale project is underway to uplift the area: on the other hand, if you purchase a home close to a run-down zone, with plans to be transformed by the council, there may be hope, as set schemes, funded by a significant amount of private and public investment could revitalise the area.

There are multiple reasons why a property’s value will improve. These factors may correlate directly to the property: the number of bedrooms or bathrooms; an additional lounge; garage; driveway; or garden to the front or back of the property. In addition, alterations such as loft conversions or property extensions will add significant value to a property.

Enhancements to social infrastructure will inevitably cause the value of a property to increase, but what exactly does social infrastructure cover? The social structure includes facilities ranging from schools, doctor surgeries or hospitals, gyms, transportation and more. Selecting the perfect location comes down to personal requirements.

4 | Green Spaces

Throughout the pandemic and as people spent more time at home, they started to reconsider and re-analyse what they require from a space. As a result, people began to race for additional space. Research also shows that more buyers are looking for homes with access to walking trails and open fields.

Properties close to parks tend to experience higher growth in price, particularly those less than half a mile away. Studies show that homes close to a park have the potential to increase by 8-20%. Properties within a 500m radius of a park in Greater Manchester had the potential to grow in value by £2,158, according to data by USwitch. Similarly, properties within the same distance in London experienced growth of £1,586 on average due to the increasing demand for green areas in London.

But how exactly does a park influence price? Let me explain. 

Homes close to parks come with the perks of having beautiful scenery right on the doorstep. Imagine a property near a noisy industrial estate. Now envision one near a blossoming green space. What would you prefer to see outside your window? Likewise, neighbourhoods near parks are well-lit for the comfort of strollers. In addition, the council will ensure the district is clean, sidewalks are maintained, and any pedestrianised routes are improved when necessary.

Whether you are out for a jog, want to take a leisurely walk, wish to socialise in the open community spaces, or take the children to explore the playground – there is something for everyone. Subsequently, this will improve the quality of life of residents. Heading out into nature reduces stress, thus positively affecting mental health. Therefore, enhancing desirability in the area and boosting competition and housing demand.  All these factors contribute to strong capital growth.