select
|

Foreign interest in SA property on the rise

SA home sellers can now expect to see more foreign buyers in the market once again – although this time around most will probably be looking for permanent residences close to business centres rather than holiday homes.

“In addition,” says Lew Geffen, chairman of Sotheby’s International Realty in SA, “most will probably not hail from the countries we traditionally associate most with foreign buyers, such as England and Germany, but rather from South America, Eastern Europe, other African countries and, of course, India and China.”

As a member of the BRICS grouping, he notes, SA is already acknowledged as one of the most important developing countries in the world, which are expected to exhibit twice as much economic growth as developed countries over the next 15 years.

“This of course makes it attractive to investors from developed countries, but at the same time, as the World Bank recently noted, companies and investors in the emerging markets themselves are currently playing a huge role in reshaping the global economy. And especially notable is the increase in South-South trade and investment – between SA and fellow BRICS members Brazil and India, for example.

“What is more, Africa with its wealth of commodities has gone from being the poorest region in the world 10 years ago to the second-fastest growing region in the world currently, and this year, the International Monetary Fund predicts, it will show economic growth of about 6%, the same as Asia. In the wake of this, SA is not only increasingly seen by overseas investors as the gateway to the huge African market, but is also benefiting from stronger ties with other Africa countries and the interest of the growing number of newly-wealthy African entrepreneurs.”

As a result of these shifts in economic activity, Geffen says, Sotheby’s International Realty has noted a slow but steady rise in the number of foreign entrepreneurs and executives taking up residence in SA over the past two years, “in keeping with the findings of the latest FNB Property Barometer, which shows that the percentage of total sales made to non-South African citizens has doubled since the second half of 2010”.

At the moment foreign buying still only accounts for between 4 and 5% of all home purchasing, he estimates, “but we expect it to increase substantially as the new world economic order takes shape, driven not so much as it was before by the weakness of the rand against major currencies such as a the pound and the euro, but by the exciting business and trade opportunities opening up in SA and Africa.”

As for what type of properties the new wave of foreign buyers are likely to favour, Geffen says: “Probably mostly upmarket cluster homes in small complexes, and the full range of homes available in gated estates, from luxury lock-up-and-go apartments right through to grand mansions, as long as the estate has excellent security and preferably a good school, shops and an office park close by.

“Proximity to an international airport and a major business or export centre will also be key, which points to an expansion of foreign investment beyond Cape Town and into Johannesburg, Durban, Port Elizabeth, East London and even smaller centres such as Richards Bay, Nelspruit and Polokwane.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK