Which factor is crucial for determining property value?

Location and zoning regulations play a critical role in determining property value because they directly influence the desirability and potential uses of a property. A property's location affects its accessibility, proximity to amenities like schools, shopping, and transportation, and the overall appeal of the neighborhood. Properties in desirable areas often command higher prices, reflecting the demand from buyers and investors.

Zoning regulations also significantly impact value by dictating what types of development or activities can occur on the property. Zoning can limit or promote certain uses, affecting the potential for property appreciation or income generation. For instance, a parcel of land zoned for commercial use in a growing area may have a much higher value than one zoned for residential use in a less favorable location. Together, these factors establish a property's utility and attractiveness, which are fundamental aspects of its market value.