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Home » Property Management » The Impact of Construction on Property Values: 5 Ways to Mitigate the Challenges

Many real estate investors fear new developments, as most of them have the potential to lower property values. In this discussion, we’ll explore the impact of construction on property values and unveil five effective strategies to counter these potential setbacks. By adapting to your property’s circumstances, you can protect your investment and ensure it succeeds.

Why does your investment property’s value matter?

Increasing the value of your property—even if you don’t intend to live in it–is a critical aspect of real estate management. High-value properties generally attract better tenants, committed to taking care of the property as if it were their own.

Additionally, a property with a high value allows you to set a more competitive rental rate. Tenants are typically willing to pay more for properties that meet their requirements or promise a good quality of life. This not only results in increased rental income but also enables you to maximize your ROI.

How do new developments negatively impact property values?

It can often be hard to control the factors that affect your property’s value. Commercial construction, in particular, often carries negative effects on residential areas, primarily due to two factors:



Commercial properties generally come with more foot traffic and, in turn, more congestion. This can reduce the appeal and value of residential properties, as most homeowners prefer a peaceful living environment. Additionally, the constant traffic can pose challenges for homeowners in getting to and from their properties, making such areas less appealing.

However, exceptions exist, especially in the city. The introduction of new commercial spaces, restaurants, shops, and similar amenities can actually elevate the property values of nearby residential buildings.


Commercial properties can be very disruptive due to the constant noise pollution it creates. These projects can last months, and in some cases, even years to complete. Throughout this period, residents in these neighborhoods must deal with the noise of machinery. This can quickly take a toll on their quality of life. It’s no surprise that the idea of residing in a noisy neighborhood deters many tenants.

How to increase your property’s value if it’s in a poor location

You can’t always control your property’s surroundings. If you’ve already invested in a Florida home in a less-than-ideal location, don’t worry. There are several strategies you can take to offset the not-so-great effects and increase its value, including:

1. Boost its curb appeal

Boost its curb appeal

Spruce up your property with cosmetic improvements, such as repainting the exterior walls, replacing the front door, and switching out the fixtures. These changes may seem minor, but they can boost your home’s curb appeal, making it look more neat and well-maintained. The goal is to leave a lasting impression on potential tenants the moment they lay their eyes on your property.

2. Invest in home improvements

Certain home improvements have been proven to elevate the value of your property. The best part is that they don’t need to break the bank. For example, the addition of a patio can make your property more appealing to tenants. This applies even if it’s in a less-than-ideal location. Expanding the space, such as adding an extra room in the basement, can also be appealing to buyers and renters.

If you’re worried about the cost, consider collaborating with a reputable property management company. They can connect you with trusted vendors who offer their services at competitive rates, allowing you to implement these strategies more cost-effectively.

3. Set your property apart

Consider features that can set your property apart from its competition. This could be smart systems (e.g., smart thermostats, security systems, etc.), a privacy fence (perfect for areas where safety is a concern), or a brand-new bathroom. Identify what other rental owners can’t offer and fill that gap through your own home.

A property management company can assist in market research to pinpoint the optimal enhancements that will make your property stand out.

4. Consider energy-efficient upgrades

Consider energy-efficient upgrades

Today’s tenants, particularly the younger generation, seek properties with energy-efficient amenities. This can include appliances with the Energy Star rating, LED lighting, smart integrations (which allow them to monitor their usage), and more. Providing various ways to reduce energy costs can be a compelling selling point, particularly for cost-conscious tenants.

5. Don’t overlook routine maintenance

Partner with a property maintenance company to keep it in pristine condition. Fix issues promptly and stay on top of necessary repairs to reduce the risk of deterioration and slow down the rate of depreciation.  A well-maintained home shows tenants that your home is free from problems, paving the way for a hassle-free living experience throughout their lease period.

Developments may elevate your property’s value

While new developments may seem inherently “bad”, some of them may boost the value of neighborhood homes. Here’s how:

Demand due to career opportunities

Commercial properties typically create more career opportunities in certain industries. When an area experiences economic growth, that translates to more move-ins, driving up property values. Being close to business centers can make your home more attractive to buyers or renters who work nearby.

Increased value due to resident-friendly facilities

Increased value due to resident-friendly facilities

Facilities that cater to families, such as good schools and safe playgrounds, can significantly boost property values, particularly in family-oriented residential areas. Additionally, developments that offer convenience can elevate property values. Examples are the proximity of properties to grocery stores, daycare centers, clinics, postal offices, etc. When residents have easy access to essential services and daily necessities, it simplifies their lives, adding to the desirability of the neighborhood.

If you’re still searching for a real estate investment, reaching out to a Florida property management firm can be a valuable step. They possess the resources and expertise to study prospective development plans, helping you ensure that these plans align with and support your goals.

Secure your property’s long-term value and success

Concerned about the potential impact of current—or future—construction and developments on your investment? At Luxury Property Care, we’re committed to carrying out all necessary strategies to preserve your property’s value. Count on us to navigate the many challenges, making sure your investment remains the top choice among tenants.

Call us at (561) 944 – 2992 or complete our contact form for more information.

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