Investing in Property in South Africa
Reasons to Invest
The political history of South Africa caused a slow and tentative start in attracting foreign property investors. The stability and growth over the past decade has paved the way for excellent opportunities throughout the country’s most sought after locations. Dedication towards positive growth has enabled a strong demand, received from both the internal market and overseas buyers, seeing fantastic potential.
A fast growing middle class society with disposable incomes, along with the introduction of the mortgage market has enabled strong internal growth. The abolition of rent control and promotion of the extensive touristic attractions, assisted in increasing appeal to foreign investors.
The strong and continuous growth potential of South Africa’s real estate sector has enabled excellent mid and long term investment strategies. Coupled with the property shortage from the country’s political past, the high domestic demand offers buyers a potentially lucrative investment market.
Buy-to-let investors are encouraged to enter South Africa’s real estate sector, with incentives offered by the government for purchases aimed at the short term rental market. The exchange rate benefits allow British, European and North American investors increased opportunities in the property market.
Rental yields for both long and short term sectors are increasing in demand, with several sought after regions providing excellent returns. Along with the standard economic facts relating to the region’s investment potential, the incredibly diverse landscape offers a wealth of attraction suited to every taste and preference. Tourism in South Africa holds great appeal for many visitors, with the potential to become a mass market destination in the near future.
- Steady economy with political stability
- Growing tourism market with worldwide appeal
- Fast growing middle class society internal market
- Strong growth in the real estate sector
- Government encouraging foreign investment
- Good mid and long term potential
- Excellent rental potential in selected areas
- Incentives for buy-to-let investors
- Ideal exchange rates for foreign investors
- High demand due to property shortage
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