Location Real estate valuation 2025: Location is the key factor in real estate valuation - this is reflected not only in market analyses, but also in valuation models used in the professional environment. But what exactly constitutes a location? How do A, B, C and D locations differ - and how do micro-location, infrastructure or noise influence the valuation in concrete terms? In this article, we take a look at the most important location factors - as they are also used in professional real estate valuation in practice.
Location classes: From A to D
A common method for assessing the situation is to divide it into four main classes. This is based on numerous factors that have proven themselves in practice:
A-location
- Top location with excellent infrastructure and high demand
- z.e.g. residential areas close to the city center, city villas, very good connections
- Very high price levels, often above-average appreciation potential
🟢 B-location
- Good to very good residential area, slightly below A-position
- Well-developed infrastructure, good transport connections
- Moderately priced below A-locations, yet solid demand
🟡 C position
- Average residential location
- Infrastructure mostly sufficient, but with limitations (e.g. less greenery, poorer connections)
- Lower purchase prices, partly stagnating development
🔴 D position
- Simpler or loaded position
- Often poorly connected, high noise level, poor infrastructure
- Low price level, increased investment risk
In practice, classification is based on a valuation model that takes into account factors such as Traffic connections, noise pollution, image, social environment, infrastructure, building density and condition of the residential environment taken into account - as shown graphically in your internal valuation practice.
Read more: Salzburg real estate market 2025 and Vienna real estate market 2025
Official info: on the real estate market in Austria can also be found at the Statistics Austria
What influences the situation assessment?
The internal graphic from your presentation clearly shows that the Location is a key factor in real estate valuation. non-changeable factorwhich is given the highest weighting in the overall assessment. It stands equivalent in terms of condition, fittings, construction and age - but, in contrast to these categories, influences the long-term market value significantly stronger.
The following location factors are included according to your document:
- Noise sources (road, rail, airport)
- Surroundings (maintained vs. neglected)
- Development forecast (e.g. up-and-coming areas)
- Infrastructure (transport, supply, education)
- Light and view situation
- Neighborhood and image
These factors are combined to classify the property in one of the location classes A-D.
Tip: You can find official information on the situation assessment on the following pages, for example:
Why location matters so much
The reason why location plays such an important role in real estate valuation is its Immutability. While the condition of a property can be improved through renovation, the location - including the surroundings, view or background noise - remains the same.
It is therefore hardly surprising that Investors, buyers:inside and experts:inside location is so important - and that price differences of several thousand euros per square meter can be explained by location alone.
Here: you will find further information on real estate valuation
Location checklist for buyers & sellers
Would you like to check for yourself how good the location of your property is? This table will help you make a quick assessment - rate each point from 1 (very poor) to 5 (very good):
| Criterion | Description | Rating (1-5) |
| Transport links | Close to public transportation, highway, streetcar | |
| Infrastructure | Shopping, doctors, school, kindergarten | |
| Noise pollution | Road noise, trains, airplanes | |
| View & exposure | Unobstructed view, good sunlight | |
| Neighborhood & Image | Reputation of the neighborhood, social structure | |
| Green spaces & local recreation | Parks, playgrounds, access to nature | |
| Development potential | Future upgrading through projects or demand | |
| Building density & building condition | Condition of neighboring houses, distances, building quality | |
| Safety & cleanliness | Crime rate, state of maintenance of public areas |
Tip: Calculate total points (max. 45 points) - the higher the score, the better the location quality!
Key Takeaways - Location Real Estate Valuation 2025
- The division into A, B, C and D layers is a tried and tested model
- The micro-location has a significant influence on the valuation: noise, view, image
- Location is - unlike condition or equipment not changeable
- The impact on property value is therefore particularly high
- Classification is based on fixed criteria as described in valuation practice and internal models
Would you like to know how much your property is really worth?
Location is crucial - but not everything. We at Kroy Real Estate value your property sound, transparent and in line with the market - with personal advice, professional tools and a deep understanding of your region.
Request a free initial assessment now
FAQ - Location Real Estate Valuation 2025
What does A, B, C or D location mean for real estate?
This classification describes the quality of a property's location. A-locations are particularly sought-after, central and well connected. D locations, on the other hand, are considered basic or structurally weak. The classification is based on factors such as infrastructure, noise, image and neighborhood.
Why is location so important in real estate valuation?
Location is the only factor that not changeable is. While the facilities or condition can be improved, the surroundings remain unchanged. It therefore has a major influence on the property value and long-term development potential.
How can I assess the location of my property myself?
With a simple checklist: Check criteria such as transport links, infrastructure, noise pollution, views, neighborhood, security and development potential. The better these factors, the higher the quality of the location.
What role does the microlocation play?
The micro-location describes the direct living environment of a property - e.g. noise pollution, view, condition of neighboring buildings, image of the neighborhood. Even within a city, the micro-location can strongly influence the value.
What is the difference between macro location and micro location?
The Macro position refers to the region, city or municipality in which the property is located. The Micro location concerns the immediate living environment - i.e. the street, neighborhood, view and infrastructure in the immediate vicinity.
