The following are the leading indicators used to determine the value of a piece of real estate:
Demand. If the market shows a clear and demonstrable increase in "demand" for a specific type of property, its value is likely to rise.
Scarcity. Scarcity refers to a low level of availability. If a particular type of desired property is in short supply, potential buyers will likely be willing to pay more to secure it for themselves.
Transferability. If the ownership of a property can be easily transferred from one individual or organization to another, it will most likely command a higher price. This is because the transaction may be considered low-risk – and will not necessitate a significant amount of time and effort. It usually means less paperwork and a lower likelihood of future legal disputes.
Utility. The phrase "utility," perhaps the most obvious of all value indicators, refers to the extent to which a specific property may meet all of a potential buyer's criteria and preferences.