Demand for farmland is underpinning the property market in Upington.
Frikkie Truter and Boetie Bill van Dyk, new owners of the local Aida franchise, say demand for residential units in town, as well as for commercial and industrial property has flattened but that farmers who have sold farms elsewhere due to land claims are increasingly resettling on farms around Upington.
"The fact that there are very few land claims in this area is a major draw card for these farmers, who want to continue making their living from agriculture. We are also seeing an increase in lifestyle buyers who target smaller units," Truter says.
Local farmers looking to expand their land are also active in the market.
Irrigation farms suitable for citrus, grapes and rotational cropping sell at prices ranging from R30 000/ha to R150 000/ha, depending on size and location. Truter says viable economic irrigation units for the area should be at least 23ha to 30ha in extent.
The partners, who acquired the local Aida franchise in March this year, say they see a bright future for the local property market.
"The fact that our agricultural sector is humming is a good sign for the local economy, which derives much of its stability from agricultural enterprises. Agriculture is a major employer in the area and if this sector is healthy, benefits accrue to all residents as well as local commercial undertakings," they say.
Issued by Aida National Franchises