Nelspruit offers buyers ideal property investment options

Generally, demand for housing within the Nelspruit region has shown exponential growth due to the fact that many family buyers and executives have relocated to the area, says Maurice Lodewick, Broker/Owner of RE/MAX Lifestyle Estates.

Figures from Lightstone, a property information and statistics provider, reflect that the number of property transactions in the area increased by around 18% from 2011 to 2012.

He notes that as the capital of Mpumalanga and a key manufacturing and agricultural hub of the north eastern region of South Africa, a number of large businesses have chosen to move their operations and head offices into Nelspruit. This migration and increased economic activity has attracted a large number of new people to the area who are looking to settle and purchase property.

Lodewick says that these buyers are predominately looking for cluster and freestanding homes situated in secure complexes and lifestyle estates that offer three bedrooms, two bathrooms, two living areas, a double garage, staff accommodation, a swimming pool and garden. He notes that sectional title and estate property options have become very popular for several reasons, such as their architectural guidelines, homeowners rules and of course the peace of mind they provide with state-of-art security features. Properties that have sold well within secure estates in the Nelspruit area have mainly been priced between R1.5 million and R2 million.

“The fact that secure complex living has become such a sought-after lifestyle makes this an ideal investment option.  Buyers who purchase homes within these estates can expect an annual estimated appreciation in value of around 5% to 12% per annum, which is remarkable considering the current market,” says Lodewick.

According to Adrian Goslett, CEO of RE/MAX of Southern Africa, the popularity of security and lifestyle estates is not just restricted to the Nelspruit area. “Security along with lifestyle offerings have become major determining factors for many South African buyers when looking to purchase a property. Properties within estates have performed extremely well countrywide over the recent years and are likely to continue to provide a healthy return on investment moving forward,” says Goslett.

Lodewick say that another property option that is likely to perform well in Nelspruit during 2013 is sectional title units and apartments that are in proximity to the new university which will be opening soon. “As long as there are learning institutions, there will be a need for student accommodation. Off-campus housing is always in demand and the constant annual influx of new students will mean an endless supply of tenants for buy-to-let investors,” says Lodewick.

He notes that 2013 will be an exciting year for real estate in the Nelspruit area. According to Lightstone, the average price of a freestanding home in the area is R1 086 000 and the average price of a sectional title unit is R637 000. Both are the highest prices seen in the area over the last ten years.

A property that is currently on the RE/MAX Lifestyle Estates books which is considered to be an ideal investment option is a spacious three-bedroom, two-bathroom home, described as an unexpected gem. Situated in a popular, secure complex, this immaculate home features an automated double garage which leads into the house, a covered patio and walled garden. Priced at R1.64 million, the home is ready for a buyer to simply move in.

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