Investing in property can be one of the most powerful ways to build long-term wealth - but only if you buy smart. The key is to find a high-growth property before the area becomes popular and prices skyrocket. These are the homes that deliver strong capital appreciation over time, often because they're located in areas on the brink of transformation.
So, how do you identify a high-growth investment property before the rest of the market catches on? Lew Geffen Sotheby’s International Realty shares expert advice about what to look for - and what to avoid.
What Is a High-Growth Property?
A high-growth property is one that increases in value faster than the average market over time. This type of property is attractive for both capital appreciation and strong rental returns.
Growth can be driven by urban development and infrastructure upgrades, population shifts, lifestyle trends and increased demand in a once-overlooked area.
This doesn’t mean buying in the trendiest neighbourhood today - it means buying in the right place at the right time, ideally before demand drives prices up.
1. Look for Up-and-Coming Suburbs
Every city has them: those once-overlooked areas now gaining popularity due to affordability, location or lifestyle improvements. Think Woodstock in Cape Town, Maboneng in Joburg, or parts of Gqeberha seeing new development.
What to Look For:
Red Flags:
Talk to local agents as they often know where the “next big thing” is before the stats reflect it.
2. Research Infrastructure and Development Plans
Public and private investment in infrastructure is one of the biggest indicators of future growth. Government upgrades and private developments (like shopping centres, transport hubs, or office parks) can drive demand and push up property values.
What to Investigate:
You can often find these details on local municipality websites or in town planning documents.
Red Flags:
Properties in good school zones and close to desirable amenities (parks, beaches or vibey restaurant precincts) tend to perform better over time, especially when it comes to attracting families or professionals as long-term tenants.
Ideal Proximity:
If the suburb offers a balanced lifestyle - convenience, safety and community appeal - it’s more likely to attract upwardly mobile residents and grow in value.
4. Spot Value-Add Opportunities
Sometimes, the best investment isn't just in location - it’s in potential. A “fixer-upper” in a good area or a property with zoning for a second dwelling or flatlet can significantly increase in value after renovation or expansion.
What to Check:
Caution:
When evaluating potential investment properties, use a consistent checklist to avoid emotional decisions. Below are examples of pertinent points to include:
Once you’ve narrowed down the areas in which you’re interested, use property platforms (like Property24 or Private Property), Lightstone reports, or even FNB/ABSA property barometers to track:
Understanding the local market ensures you’re not overpaying and helps you project future returns.
7. Consult Local Experts
Talk to:
Their insights can reveal things you won’t find in Google searches, like rezoning rumours or where bulk buyers are scooping up plots.
8. Red Flags to Avoid
Even if everything looks good on paper, beware of these deal-breakers:
A well-chosen investment property doesn’t just pay for itself; it appreciates, creates equity and opens doors to future wealth-building opportunities.
Don’t fall in love with the first trendy suburb you see. Instead, dig deeper, do your research, and focus on location, potential, and data. The best investors spot opportunities early, while others are still chasing yesterday’s hotspots.
Your goal isn’t just to buy property - it’s to buy wisely, before the market catches on.
Comments