Can New Roads Change How Much Your Property Is Worth?

Property value is a complicated topic that is affected by dozens of different factors, some of which can be difficult to predict. One of the biggest factors in increasing property value is the presence of new roads. Whether it’s an indirect effect by increasing the local population, increasing development in the area, or just bringing more visitors and customers to you if you’re a commercial business, there are tons of different effects roads can have, so keep reading to find out more. 

  1. Ease of access

The immediate and most obvious benefit of having new roads is that, in a car-centric commuting system, everything becomes far easier to reach, especially areas that are near your property. Suppose you’re operating a business that relies on customers. In that case, you’ll benefit from this directly, but if you own a property purely as an investment, you’ll benefit in a lot of indirect ways. Roads being built close by results in more people coming closer to you for work, settling nearby, and developing the area by adding businesses and entertainment districts, all of which raise the nearby property value and make your land far more desirable. 

  1. Less traffic

Traffic issues may not seem directly related to the value of your property, but they can have a major effect since a big chunk of your perceived value is based on how attractive your property is to live or work in and places that are near streets with traffic congestion around the clock aren’t great places to live near, because of the noise and air pollution, and the difficulty in getting around. New roads serve to alleviate this issue, as there are more ways to get around to wherever you need to go, and that increases the desirability of your area in the long term. 

  1. Development opportunities:

Development opportunities are tied to places that are easier to get to, especially for businesses and commercial interests. Many investors sense an opportunity wherever new roads are built because they always bring new traffic with them, and that means a big customer base without significant competition. 

Over time, you’ll observe more businesses of all kinds, including restaurants, hotels, movie theaters, and more, and this race to be the first to establish a business will create a huge demand for any property in the area, and you’ll be the first to benefit from that. Understanding how a new road affects property values is important for any property owner, investor, and  commercial real estate appraiser. It helps them make smart decisions about where to invest and how much properties are worth.

  1. Domain laws:

Domain laws are an unfortunate risk that many property owners have to take when roads are being built because these laws allow the government to seize lands and property if it’s in the way of the new roads that are being built. 

This introduces a level of risk to owning properties, which isn’t usually associated with owning real estate. As a result, you’ll be running the risk of losing or being forced to sell the property you’ve been trying to develop and sell for a profit, or, if you avoid that possibility, your property value may still decrease because the immediate area will be associated with a higher amount of risk of falling under the government’s domain.  

  1. Changes in property types:

The presence of new roads doesn’t just affect the value of property in the area, but it can change the type of property that arises entirely, which can be both good and bad in certain situations. 

For example, wherever new highways are built, virtually all property types are for hospitality, ranging from motels to bed and breakfasts, and there’s a real demand for investors who want to build these businesses. The bad news is that if you were planning on waiting before you sell your property or develop it into some other kind of building, you likely won’t be able to, and you’ll have to sell sooner rather than later. 


New roads are a great addition for virtually any business or property because the ease of access brings a lot of benefits with them, ranging from more foot traffic and visitors to more people settling nearby, increasing the presence of businesses and other development, all of which bolsters property value. Using the information in this article, you’ll be able to predict all of the effects roads will have on your property, and you’ll be able to adapt accordingly. 

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