Why are properties situated close to the water edge more expensive?
Ostatnio podczas spaceru po bulwarach wiślanych zastanawiałem się, dlaczego Warszawa tak długo odwracała się plecami do rzeki. Wszak na całym świecie bliskość rzeki jest niezaprzeczalnym atutem zarówno samego miasta, jak i położonych w jej pobliżu nieruchomości.
I have been living in Warsaw for many years now and, in fact, I have always wondered why the city had turned its back on the river for so many years. What does this mean? Warsaw had simply not been treating its river as an amazing resource. While it is true that one of its banks (the left one) was developed and managed and both parts of the city were connected by bridges, yet the potential of the river was not realized. It was not until recently that things have changed: many popular bars were set up on the Vistula bank and the city invested in the construction of boulevards.
It seems that finally also real property developers began to appreciate the proximity of the riveras a result of which a few interesting properties have been developed on the Vistula bank. The prices of these properties are usually higher than in other parts of the city. Why is this so?
Reason no. 1: The view
People like living next to water reservoirs. Perhaps the reason why is that water prevents the possibility of the erection of another building or the development of a busy road. And so, the lucky owners of apartments near waterways can enjoy an unobstructed, relaxing view of the flowing river.
Reason no. 2: The cost of development
Land in the proximity of water reservoirs is usually floodplain. Such conditions require the adoption of additional security measures both in the course of construction and once the building is developed – this is linked with the load bearing properties of the land and the risk of flooding. This means that the cost of development of a single square metre is higher for the real property developer than in the case of other properties. In addition, the proximity of water may also be connected with the necessity of obtaining relevant permits and environmental decisions, and meeting additional requirements.
Reason no. 3: Demand
The length of the river bank in cities is limited. As such, real property developers only have a few kilometres of space to take advantage of and the number of apartment buildings offering a view of the river will always be relatively low. This in turn translates into a certain degree of exclusivity.If someone wants a view of the Vistula, they have to be aware of the fact that such premium locations are costly.
