This sponsored, biweekly Q&A column is written by Andrew Goodman, Associate Broker and top producing agent with Gallagher & Co. Real Estate, Inc. Based in Bethesda, Andrew serves clients in Maryland, D.C., and Northern Virginia. Please submit comments, questions, and opinions in the comments section or via email.
Question: What do you think all of the new construction going on in and around Bethesda will do to our property values? I’m worried the new construction will increase supply and the demand will not be there.
I believe the new construction will actually have a positive effect on Bethesda’s current real estate values.
The value of current homes should increase as more traffic comes to the area. When more people come to the area, more commercial property, businesses, attractions, etc. come too, which all increase demand. Plus, the new construction is mostly rental apartments, not condos, so the supply of real estate for sale will not be affected too much. Here are the developments going on in downtown Bethesda:
Hopefully, the Purple Line will help alleviate the extra traffic from these new developments and new developments in White Flint. The light rail will make Bethesda more convenient for shoppers and commuters.
All of the new construction going on in downtown Bethesda is high quality. Rooftop terraces, lounges and fitness centers are now becoming the norm with today’s highrise style of living.
Of course, this style of living does come at a premium and will likely drive households with higher incomes to the area. Though most of the developers are looking at the highrise option to provide more units, each building does provide ample retail space and parking. This will in turn make Bethesda more desirable than ever, which will encourage more businesses to open up, providing jobs, increasing demand, and increasing property values.
Rents will increase and remain high. This could push more people to purchase real estate instead of paying rent, which will ultimately again, increase real estate prices.
The Bethesda area is on the move and the property values are going to increase with it!