5 Factors that devalue a property

In the real estate market, several factors can influence the value of a property. In addition to aspects that naturally increase its value, there are also elements that can have a negative impact on its sale price. Understanding these factors is essential if owners and investors are to make more informed decisions and keep their properties valued.

Below we list five factors that devalue a property and which should be carefully observed:
 

1. Unfavorable location

Location is undoubtedly one of the main factors in a property´s appreciation or devaluation. If the property is located in an area with high crime rates, poor access to services such as public transport, schools and hospitals, or in regions with little infrastructure, its value can drop dramatically. Similarly, properties near noisy or polluted industrial zones also tend to be less attractive.
 

2. The property´s state of repair

A property that shows obvious signs of wear and tear, such as leaks, peeling paint, cracks in the walls or structural problems, automatically loses value on the market. Buyers are looking for well-maintained spaces where the cost of maintenance is not high. A property that needs a lot of renovation can be seen as a problem, resulting in a significant devaluation.
 

3. Poor distribution of space 

The functionality of a property is directly related to its value. Poorly distributed floor plans, with small or uncomfortable rooms, long and unnecessary corridors, or a lack of natural light, can compromise the experience of future residents. The lack of practicality and fluidity in the layout of spaces devalues the property, as buyers prefer properties that offer comfort and space optimization.
 

4. Excessive noise

The quality of life in a property is also directly linked to the noise level in the area. Properties near busy roads, airports, factories or night-time entertainment areas (bars, clubs, etc.) tend to fall in value due to the constant noise nuisance. Poor acoustic insulation also contributes to the property being considered less attractive, negatively impacting its value.
 

5. Poorly executed alterations and refurbishments

Although refurbishments can often increase the value of a property, badly planned or poor quality alterations can have the opposite effect. Low-quality materials, poor finishes or renovations that are not in keeping with the style of the original construction can devalue the property. What´s more, renovations that don´t comply with technical standards or don´t have the approval of the relevant bodies can also pose a problem when it comes to selling.
 

Conclusion

Keeping a property valued requires attention to various details, both structural and legal. Location, state of repair, the quality of the renovations and the functionality of the spaces are all factors that can increase or decrease the value of a property on the market. Anyone wishing to sell a property should always consider these elements and, if necessary, make improvements to avoid a devaluation.

If you have any doubts about how to maintain or increase the value of your property, our team of experts is on hand to provide advice and support at every stage of the real estate brokerage process.