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:
- Bethesda and Woodmont Ave: The Darcy and The Flats provide a site containing an 88-unit condo building along with a 162-unit apartment building, 40,000 square feet of combined retail space and private and public underground parking. (Prices range from $700,000 to $3 million)
- 8300 Wisconsin Ave: A nine-story building with 300- 375 apartments and a Harris Teeter grocery store on the ground level.
- 4800 Auburn Ave: (The Gallery of Bethesda) A 17-story apartment building containing 234 units and 5,400 square feet of retail space on the ground floor. (Will be followed by construction of a second, 16-story, 221-unit building that is part of the project.)
- 7900 Wisconsin Ave: A 17-story, 475-unit apartment building with 20,000 square feet of retail space.
- 7770 Norfolk Ave: A 17-story building with 236 apartments, 7,000 square feet of retail and private underground parking.
- 7100 Wisconsin Ave: A proposed 12-story, 145-unit apartment building with 7,000 square feet of retail space.
- 7001 Arlington Rd: A five-story mixed-use building on the site of the old Post Office with 140 multi-family units, more than 15 percent of which will be moderately priced (MDPU’s) with 211 parking spaces and 7,000 square feet of retail space.
- 4915 Hampden Ln: A seven-story condo building containing 60 units and underground parking.
- 4990 Fairmont Ave: (The Fairmont) A 17-story condo building containing 70 condos.
- 4905 Hampden Ln: (The Lauren) A seven-story condo building containing 40 units. These will be top of the line condos with direct-access elevators and private roof terraces. (Prices are advertised at “the several millions”).
- 7340 Wisconsin Ave: A 14-story apartment building with up to 225 units.
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!