How location affects property values and what buyers need to know

When it comes to buying property, the age-old mantra, "location, location, location", holds very true and in order to make the best possible investment, it's essential that buyers understand how this critical factor impacts a property's value.

- PROPERTY WRITER

This is according to Claude McKirby, Co-Principal for Lew Geffen Sotheby's International Realty, who adds: "While other factors such as a property's size, design and features certainly play a role in determining its value, location remains the single most influential aspect affecting a home's worth and investment potential.

"Whether you're buying a home to live in or an investment property, understanding how location impacts property value is crucial for making a smart financial decision and, as property markets vary significantly from one city to another and even between neighbouring suburbs, knowing what to look for in a location can mean the difference between a solid investment and a poor financial choice."

McKirby shares the following key location-related factors that buyers should take into consideration to ensure they make informed decisions that align with their financial and lifestyle goals:

1. Proximity to economic hubs and employment opportunities

One of the key drivers of property value is how close a home is to major economic centres. In cities like Johannesburg, Cape Town, and Durban properties near business districts such as Sandton, the Cape Town CBD, or Umhlanga tend to be highly sought after.

These areas attract professionals who want to live close to work, reducing their commuting time and transport costs and, as a result, property prices in these locations are generally higher and continue to appreciate over time.

Emerging economic hubs, such as Menlyn in Pretoria and Century City in Cape Town, are also seeing rising property values as businesses relocate to these areas, driving up demand for nearby housing.

2. Access to quality schools and Educational Institutions