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How Schools Affect The Price Of A Property?

How Schools Affect The Price Of A Property?

How Schools Affect The Price Of A Property?
(Images Bazaar)

Wondering what was primarily driven by location, demand and supply can get impacted by the presence of schools and colleges in the vicinity? If not an exaggeration, take the example of Ireland where the population pays 2.6 per cent more to live close to schools, taking the national average to €5,600. Similarly, a survey indicated that 91 per cent of the population in the United States of America is ready to pay an extra premium for living close to schools, even if they had to settle for a smaller home. Similarly, in India, the story remains same. However, the dynamics are a little different. Check out how schools near your home are price boosters.

Similarly, in India, the story remains same. However, the dynamics are a little different. Check out how schools near your home are price boosters.

They garner attractive rental yields

The proximity to schools makes property desirable. Those migrating from nearby cities look for properties which are closer to educational institutions. In fact, the demand for paying guest accommodations remains high in such areas. Some of these accommodations carry an extra premium, owing to the facilities and provisions offered here. However, not every landlord prefers to keep student population as a renter as the property maintenance becomes a challenge. Not just the school and college going crowd, renting properties close to school is a popular trend in nuclear families as well. Parents prefer to shift close to schools as the surrounding areas offer other types of amenities as well such as crèche and activity classes.

Not just the school and college going crowd, renting properties close to school is a popular trend in nuclear families as well. Parents prefer to shift close to schools as the surrounding areas offer other types of amenities as well such as crèche and activity classes. “Homes close to schools and colleges can fetch up to 20 per cent of more rental income. If the area is high-neighborhood, it can go up to 30 per cent as landlords prefer families over bachelors because they ensure the upkeep of the property unlike PG accommodation,” says Faruq Ali, one of the property consultants in Mumbai.

“Homes close to schools and colleges can fetch up to 20 per cent of more rental income. If the area is high-neighborhood, it can go up to 30 per cent as landlords prefer families over bachelors because they ensure the upkeep of the property unlike PG accommodation,” says Faruq Ali, one of the property consultants in Mumbai.

Have comparatively better infrastructure and amenities

Most of the schools are in an affluent neighbourhood where infrastructure is already settled and operational. Open areas, greenery, parks, crèche, hobby classes, sports courts etc. are some of the amenities that make environment child-friendly. Pune is one of the cities which has 'child-centric' homes to offer. There are townships offering specialised coaching classes, managed by celebrity sportsperson, resident granny, and carpool planning, child-friendly interiors and so on. While these societies do carry a minimal premium, young couples and nuclear families are finding these kinds of homes worth spending. What makes them more desirable is their proximity to schools and colleges that can save their time and money in commuting.

Pune is one of the cities which has 'child-centric' homes to offer. There are townships offering specialised coaching classes, managed by celebrity sportsperson, resident granny, and carpool planning, child-friendly interiors and so on. While these societies do carry a minimal premium, young couples and nuclear families are finding these kinds of homes worth spending. What makes them more desirable is their proximity to schools and colleges that can save their time and money in commuting.

Ideal for young couples and nuclear families

Not just the families but even newly married couples look for property options which are close to a well-settled neighbourhood with a good school in the vicinity as it adds to their convenience once they plan their family. Since the frequent upgrade is not an option in Mumbai, working couples plan their home first, keeping in mind their future needs which obviously includes a healthy neighbourhood and proximity to a reputed school.

What to watch out for

Considering buying a property close to school is a wise decision, but the price rise is subjected to several permutations and combinations. For instance, not every locality with the school is affluent or desirable as parking can create congestion during morning hours. If you are renting your property as a paying guest accommodation, it is advisable to arrange for maintenance staff as well to keep your property in a good condition.

Last Updated: Tue Nov 15 2016

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