The most critical factor responsible for growth or Return on Investment in Real Estate - The Location. 
You will always find someone saying or must have come across in your reading at some point in time - Location.. Location.. Location. 

After dealing in Real Estate for seven-plus years now, I can attest to that. Location, by far, is the most important aspect which determines the growth and returns any Real Estate asset will offer during the course. Let's discuss one by one all of the factors why Location plays such a key role in the growth of Real Estate,
Accessibility - In terms of the Greater Toronto Area, the locations which are closer to highways and straight access lines to the City of Toronto and are more accessible are preferred and exhibit better growth in prices. The commute time (by driving) or the transit time via GO Train to downtown Toronto directly affects the appreciation. The smooth access to highways from a town helps reduce driving time to nearby destinations. With the excellent access the Location offers, the resident will spend less time in traffic and more time with the family due to the ease of commute, resulting in a better quality of day-to-day life. 

Economic Growth Prone Areas - Towns with a strong job market, an abundance of office premises, and commercial infrastructure are signs of economic growth-inclined areas. These are the areas where most appreciation and growth happen in Real Estate. By virtue of higher job opportunities and prospects, the market rents are always relatively higher, which works well for an investor for consistent cash flow. In addition, these towns will have lower vacancy rates which are plus for investments. 

In the Greater Toronto Area - the City of Toronto, Markham, Richmond Hill, Vaughan, Oakville and Mississauga are some of the examples of sought-after locations in this region. In this infographic, you can review the GTA municipalities and how they rank based on the median sold prices observed in January 2023. 
Appreciation - In terms of future appreciation, properties located in areas experiencing economic growth tend to hold their values better and exhibit growth. Properties in municipalities with limited growth opportunities are less likely to appreciate in value with time. They would appreciate it, but the increase will not match other desired locations. 

Stability - Better locations in terms of market fluctuations will have the least impact on property values. They will be the first ones to rebound when the market settles and corrects itself. They are more immune to fluctuations in the market and are less volatile. This stability in dealing with real estate cycles makes investments safer and more prudent to economic downturns.

Amenities - The public access to recreational facilities, shopping, dining, entertainment, parks and trails, etc., ?makes a location shine and increases the livability score for a place. A better location organically will have better amenities and infrastructure. The presence of good amenities has a direct bearing on higher rents and low tenant vacancy rates. 


School district - Properties located in areas w a New Listing comes up in better locations with good school districts. The properties are sold in minimal time with fair market value due to being present in a good school zone.
Future development - Properties located in areas with plans for future development, such as new transportation options, commercial developments, and residential subdivisions, are more likely to see increased demand and hence the inherent price growth.

In Real Estate investments, we have many other aspects to consider for the purchase - budget, property type, style, property age etc. But the most important one is Location as it has the most impact on the price growth and livability. Therefore, I urge you to do your due diligence and research when you set out to finalize a location for your living or investment. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta 
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]