One element is a rich knowledge base. The more you know about different cultures, historical events, and scientific facts, the more material you have to draw from when creating a story. Creativity is obvious. It enables you to combine different elements in unique ways. For example, you might combine a medieval setting with futuristic technology. Another element is the ability to create conflict and resolution. A good story needs some sort of problem or struggle that the characters overcome, and an imagination that can come up with engaging conflicts and satisfying resolutions is key for telling a lovely story.
A vivid sense of imagery is crucial. Being able to clearly picture the settings, characters, and actions in your mind allows you to describe them well in a story. Empathy is also an element. Understanding different emotions and being able to put yourself in others' shoes helps create relatable characters. And a touch of whimsy, that ability to think of unexpected and delightful things, like a magical talking animal or a hidden world in a garden.