Designing a difference: What is the role of design and architecture in influencing property value? By Mr. Anmoll D Shroff, Founder & CEO, Graanth Realty

In contemporary built environments, design no longer remains an aesthetic consideration; quite to the contrary, design is a fundamental component underpinning the real estate industry, given its ability to influence the manner in which existing and potential clients perceive and interact with a space. In doing so, it makes a significant impact on the overall value of the property. Up until recently, the impact of design on real estate valuation was understood but never quantified, which often affected the design process and the resultant economic outcomes.

This is changing with studies such as the Real Estate Innovation Lab’s The Value of Design in Real Estate Asset Pricing report, which measures for specific design elements and plots their impacts – the report found that features such as diagonality and podiums have a positive pricing differential of 12.4 and 9.7 per cent more than rectilinear buildings respectively, while structures with setbacks have a negative pricing differential of 10 per cent. Additionally, research by prominent architects Ann Sussman and Janice M Ward has found that people’s gaze lands on structures in very specific ways: for instance, while blank facades are largely ignored, buildings with punched windows and areas of high contrast draw far more attention. Such data can go a long way in changing the way structures are built, perceived and purchased.

When considering design, there are several key parameters that have a tangible impact on the value of the property.

Aesthetics and perceived value

Unique and well-designed structures can immediately make a property stand out, especially in a densely populated real estate landscape. An attractive and statement design can add a sense of distinctiveness and have a directly proportional influence on the property’s perception and value. Similarly, the external appearance (or the curb value) of a property can make a lasting first impression – factors such as a well-maintained exterior, appealing architectural styles such as Colonial, Victorian or Modern, can make a property more marketable. The aesthetics of a structure include several factors, including the design of the facade, the building materials, the quality of landscaping, and the overall visual harmony. The curb value of a structure is particularly important when it comes to purchase decisions, as buyers form their opinions within the first few minutes of observing a structure.

Details and nuances

In the case of luxury properties, buyers are perceptive to subtleties that express attention to detail – from aesthetic considerations such as custom woodwork and exquisite tiling, to practical conveniences such as custom cabinetry and storage solutions enhance the appeal of a space. For discerning buyers, such details communicate a higher level of craftsmanship, which they are willing to pay a premium for. In urban spaces, buyers are especially drawn to design elements that combine form with function, enhancing the user experience and practicality of occupying the structure. An appealing layout that emphasises versatility with an open floor plan, while also featuring high ceiling heights, contemporary finishes and ample natural light also adds to a space’s desirability.

An eye for sustainability

With buyers becoming increasingly conscious about their carbon footprint, properties that intentionally incorporate green building principles, energy-efficient design and sustainable building materials are gaining in popularity. Additions such as energy-efficient HVAC systems, solar panels, recycled materials and water-saving fixtures immediately enhance the appeal of a property to buyers who aspire for a more sustainable way of life. This can be further accentuated with smart home technologies that optimise energy consumption and offer enhanced convenience.

It is worth noting that while incorporating innovative, sustainable or detailed design elements in a structure may require a higher initial investment, and an additional input of time and efforts, these inclusions can substantially enhance the perceived value and desirability of the property. By being mindful of evolving buyers’ preferences, real estate developers essay a crucial role in upholding and elevating the design standards of local markets, while also distinguishing themselves by combining innovation with regional trends and nuances.