With a volatile start to the year for many global markets and a mixed economic outlook for 2016, the property investment industry remains stable.
International property investment firm IP Global has a large number of clients in South Africa requesting to liquidate their share portfolios – instead, moving towards fixed, stable assets.
“Property, especially during uncertain times, is one of the most sought-after investment asset classes,” says George Radford, the firm’s director for Africa. “Our investors are increasingly choosing to allocate their funds to safe-haven property markets such as the UK and Australia, for diversification and stability purposes.
“The low liquidity of real estate as an asset class has always been a favourable point for investors looking to avoid instability. Property markets take more time to react to external influences, and are therefore less likely to suffer from short-term reactions to still-unfolding events,” adds Radford. “It’s during these periods of volatility that investors often appreciate bricks and mortar more than ever.”
This article originally appeared in Neighbourhood, Sunday Times.