When talking about real estate, the market has experienced a lot of ups and downs with housing and landing prices being up one second and plummeting another second. This is as a result of the market being susceptible to the changes in various aspects of the economy. Such an instance is obvious when it comes to structures and locations surrounding the real estate in question.
Although there have not been a lot of studies in the effect of golf course location on the property market, there have been indications that building properties close to a golf course adds about 7 to 8 percent of value to the property. On the other hand, it has also been discovered that building a private golf course on an island does not have a say on the price of the surrounding real estate so therefore the theory can only be refrained to more commercial locations.
The Real Estate Theory
If the theory is being adhered to for commercial locations, then a place like California that boasts of a lot of tourist attractions and golf courses is a place in which the theory can be tested. It should be considered highly likely that the golf courses in California adds significant value to the surrounding real estate but it is also possible that the view and overall planning of the area might detract from any benefit going to any real estate positioned close to a golf course.
Going as far back as 1988, the United States has had over 600,000 buildings committed to golf course communities. In the Santa Cruz and Los Angeles area of California alone there are more than 120 golf courses with several others undergoing development plans consisting of building lots and fairways, developers may find that there are other things apart from golf course location that have a more positive effect on lot values, and therefore may find it more profitable to protect and enhance natural areas.
Luxurious Neighborhoods & Golf Courses
Regardless of the constant closure and repurposing of the golf courses, there is no doubt that golf courses positively impact the real estate around them. A recent survey done by the National Association of Realtors showed that apart from public parks and recreational spaces, the 170,000 home sales within the 1,700 feet of golf courses like those found in The Los Angeles Country Club, The Bel-Air Country Club and Rancho Santa Fe boosted home values by $8,000. This result is only secondary to natural landmarks. Thus, you see a rising in price of the surrounding neighborhoods, thus Brentwood real estate agents often highly the proximity of Brentwood to the Bel-Air Country Club.
Owing to the fact that California is a prime location and has a lot of landmarks and is where the popular entertainment Hollywood industry can be found, unless further in-depth investigations can be carried out as to how definitive the presence of a golf course affects real estate prices then it alone cannot be awarded as the cause. In some cases, a golf course can also reduce the going price of real estate as a result of certain factors like too much congestion as a result of the comings and goings of the individuals in the golf course.