There are multiple factors contributing to a property’s value. In Arizona, zoning regulations could significantly impact the price of a property. Knowing how location and zoning laws affect a property’s worth would be valuable if you plan to buy a property for residential or commercial purposes.
What are zoning regulations?
Zoning shapes the overall image and utility of the land in a city, municipality or state. The local government uses these regulations to provide its residents with a safe, healthy and thriving community.
Depending on the land quality or the government’s plan, zoning regulations allocate residential, commercial, industrial or agricultural areas. The government could also designate zones for the community’s overall vitality, such as schools, historical, cultural and hospitals. Specifically, zoning regulations could dictate limitations on lot sizes, building height, building structure, community density and allowed activities in a zone.
One of the main reasons for zoning regulations is to separate residential and commercial property use.
How do zoning regulations impact a residential property’s value?
Properties in residential zones are only for housing. Often, these are in areas with easy access to transportation hubs and amenities. The property’s proximity to amenities, such as schools, malls, parks or airports, could determine its value. Restrictions within the property’s zone could also influence its marketability. Moreover, future developments within the property’s location would also affect its value, such as when a residential zone is transitioning to a mixed-use zone.
How do zoning regulations impact a commercial property’s value?
Commercial zones are for businesses. Properties in commercial zones have higher value due to their profitability. Nonetheless, there could be varied impacts on a property’s value, including its accessibility. When a commercial property is near a busy street, it warrants more foot traffic for a business. Thus, properties within such areas could have higher values. Restrictions on building height, structure and allowed business within the zone could either enhance or constrain a property’s value.
It is beneficial for property owners, developers or investors to understand zoning regulations and their implications on a property’s value. Zoning regulations are vital to real estate development and must be considered thoroughly before engaging in a transaction. It is crucial to seek the assistance of legal professionals experienced in real estate laws when navigating through the complexities of the real estate market.