The Effect of Public Buildings on the Value of Nearby Apartments

If you are about to close a real estate deal, you have probably wondered more than once what factors can affect the value of an apartment. Does a nearby school raise or lower the price of the property, and what about a park, a hospital or a synagogue? Which public buildings affect the values of the apartments around them, and how, is the subject of the article before you.

A school reduces the value of a nearby apartment by about 5-7%

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Since noise is an environmental factor that disturbs residents, the value of an apartment located next to an elementary or high school is reduced by between 5% and 7%. An apartment facing classrooms will be affected less than a property next to the sports field or swimming pool, if there is one. In cases where schools include many additional elements besides the classrooms themselves, such as tennis, soccer and basketball courts used by local residents outside school hours, the reduction in the apartment's value may reach 10-12 percent.

A kindergarten does not affect the values of apartments around it

Since kindergartens operate during hours that are aligned with the working hours of most of the population, proximity to a kindergarten usually does not affect the price of the apartment. Since most kindergartens operate in low buildings, the disadvantage of noise is balanced by the advantage of the open view. In some cases, there may be a slight reduction of only 1-2% of the apartment's value.

A hospital reduces the values of apartments in its immediate surroundings by between 10% and 12%

Noise from ambulance activity, together with increased density in parking spaces and traffic loads, causes a 10-12% reduction in the prices of apartments located in the first ring around a large hospital building. By contrast, properties in the second and third rings around the medical center see their value rise by 5%-10%, thanks to increased demand from medical and nursing staff who want to live close to their workplace.

A police station causes a 10%-12% reduction in the value of nearby apartments

In the case of a police station, the reduction in apartment values extends beyond the first ring at the base of the public building, since the professional staff of police officers usually do not want to live next to their workplace. If you add the noise of police vehicle sirens, and the many incidents of violence and detainees who arrive at the site, you can understand the drop in prices, which stands at about 10%-12% in the first ring, 5% in the second ring and 2% in the third ring.

A health fund clinic causes a 10%-12% reduction in the value of adjacent apartments

Residents living next to health fund clinics are affected by the noise of ambulance sirens, causing a decrease of 10%-12% in the value of apartments located in the first ring, 5% in the second ring and 2% in the third ring around the building.

A small commercial center produces a 3%-5% reduction in the value of nearby properties

The drop in price of apartments located next to a small commercial center is mainly related to noise caused by businesses that are also open at night, such as cafes. Alongside a 3%-5% reduction in the values of apartments located in the first ring at the base of the commercial center, there is an increase of 3%-5% in property prices in the second ring and an addition of about 2% to values in the third ring.

A mall reduces the values of adjacent homes by 10%-15%

There is no doubt that a mall opposite your home is a significant nuisance in terms of traffic loads, parking density, noise and air pollution. In addition, the glass facades of the mall may emit radiation that creates a heating effect or may dazzle residents of the homes in the first row opposite. Prices of homes in the first ring around a mall may fall by about 10%-15%, the values of apartments in the second ring will fall by 5%, while the values of properties in the third and fourth rings will actually rise by between 5%-7%.

A public garden will lead to a reduction of about 5% in the value of properties near it

One of the factors that may lead to a drop in the value of apartments next to public gardens lies in the phenomenon of inappropriate use of the garden by teenagers at night. If teenagers tend to get drunk, shout and litter the garden after dark, this may lead to a drop of about 5% in the value of apartments overlooking the public garden, but properties located in the second and third rings will not be affected. In addition, if there is no phenomenon of teenagers creating a nuisance in the public garden, or if the garden is closed at night, apartment prices will not be affected, and may even rise by between 8%-10%.

The value of apartments whose windows face a cemetery will be reduced by 15%-20%

Of course, a view of graves and a cemetery from the windows of a home is a sight no one wants. Therefore, apartments and houses located in the first ring around a cemetery, especially if their windows face it, are affected by between 10%-20%. The prices of properties located on the route used for funerals will be affected by about 5%.

A theater does not affect the prices of apartments located nearby

The prestige of a theater or cultural hall balances the already minimal reduction that lies in the increased density in parking spaces during show times.

A synagogue raises the value of nearby properties by about 3%-5%, in a religious neighborhood

The nature of activity in a synagogue does not create environmental noise nuisances, and in religious or traditional neighborhoods, living near one is considered a blessing, bringing good influence and positive energy. As a result, an apartment located next to a synagogue may enjoy an increase of between 3% and 5% in its price.

A train station causes a 10% reduction in the price of nearby apartments

Train noise, busy transportation and increased commercial activity combine and cause a reduction ranging between 2%-10% in apartment values near the station, depending on the severity of the nuisances and the level of its activity.

A bus stop causes a 2%-3% reduction in the value of apartments built above it

The noise and air pollution produced by buses, combined with the crowding and noise of waiting passengers, cause a reduction ranging between 2%-3% in the value of apartments located right above it. However, properties built 100 meters or more from the stop, and located in the second and third rings around the bus stop, see an increase in value of 2%-3%, thanks to improved accessibility.

A green park raises the value of apartments near it by between 8%-10%

Green parks are known as a positive factor with regard to the air quality we breathe, the beauty of the view and the prestige of the residential area in which they are located. Therefore, apartments built next to a park are expected to enjoy a price increase ranging between 3%-15%, influenced by their physical closeness to the park and by having a direct view of the green areas.

The value of homes close to the seashore rises by about 30%-35%

A view of the blue sea from a home window is, without doubt, one of the factors that improves the value of a property more than any other. Thus, apartments located in the first ring to the sea enjoy price increases of 30%-35%, properties built in the second ring are improved by 15%-30%, while in the third ring it is an addition of 15%-20% to the value of the home. It is important to remember that beyond proximity to the shore in itself, having a direct view of the sea also has a great effect on the price of the property.

A public swimming pool causes a 5%-7% reduction in the prices of properties near it

Since a public swimming pool or a country club creates noise nuisances and traffic and parking loads, drops of 5%-7% have been observed in the values of properties adjacent to these buildings.

An academic institution raises the value of properties around it by between 10%-15%

Universities and colleges have a positive effect on the prestige of the neighborhoods in which they are located, and attract a higher-quality population to the area. In addition, rental potential rises, due to growing demand, which contributes to raising property prices. Therefore, the prices of apartments located next to institutions of higher education rise by 10%-15%.

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