Real Estate Investor Magazine South Africa May/June 2015 | Page 50

INVESTOR INTELLIGENCE

Transport Trends

Tap Into The Impact On Property Values
BY MONIQUE TERRAZAS

S

mart investors keep a close eye on transport
trends and developments, understanding the
significant impact it has on the value of their
property investments.
Almost every major land use study has come to
the conclusion that transportation improvements
positively affect the value of nearby property. Buyers
and tenants place a premium on easy access to a
convenient transportation network.
Classical economic theory suggests that when a
highway or railway is initially built, large parcels of
land that previously had poor accessibility – or none
at all – are suddenly underpriced. The ma