International investors are showing renewed interest in South Africa – and nowhere is this more clearly reflected than in the country’s luxury property sector, says Berry Everitt, CEO of the Chas Everitt International* property group.
“When President Cyril Ramaphosa took office earlier this year, he promised us a ‘New Dawn’ fueled by US$100bn worth of new foreign and local investments, and after October’s investment summit in Johannesburg, he and his investment envoys are more than half way towards reaching that goal.
“This has revitalized business and consumer confidence in SA’s ability to re-establish itself not only as a regional powerhouse but as the real ‘gateway’ to Africa’s US$2trn marketplace – and astute property investors are already anticipating this recovery by snapping up high-end real estate here, especially in Johannesburg.”
This city is recognized as the financial capital of Africa, he notes, and its luxury property sector is generally dominated by investors seeking primary residences or second homes that are used for business rather than holiday purposes.
“Our specialist Luxury Portfolio© team in Johannesburg recently sold out a brand new luxury cluster home development in Hyde Park within just a few weeks, and has concluded sales worth a total of US$30m since the start of the year.
“It has also just been mandated to market The Emerald, a brand new development of 298 luxury apartments close to Sandton at prices from R2,2m that undeerscores the belief of local developers in the continued strength of demand in this sector.”
Everitt says the company has also just launched a new Luxury Portfolio team in the capital city of Tshwane to meet rising international demand for property there, which is being fueled by the fact that most ambassadors to SA are resident in the city’s elite suburbs and very positive advocates of its cosmopolitan lifestyle and wonderful climate.
“We are confident that this will not only put the city on the international luxury property map along with the better-known SA destinations of Johannesburg and Cape Town, but be a big positive in terms of attracting more interest from the affluent leaders of the international business community and helping to boost economic growth and employment in the Capital City.
“It is a major trend currently for high net worth and ultra-high net worth individuals around the world to seek hot investment opportunities outside of their own countries, and the purchase of a second or third residence in a certain location will often be accompanied or followed by a commercial investment in that location. This is particularly true in cities like Tshwane, which offer both business opportunities and an attractive lifestyle.”
Meanwhile, he says, the town of uMhlanga and the beautiful North Coast of KwaZulu-Natal are now also experiencing rising demand for luxury apartments and estate homes, as SA becomes an increasingly important player in the Indian Ocean Rim Association and large number of investors from India and the Far East are drawn to a sophisticated commercial hub that includes the Port of Durban, King Shaka International airport and the Dube Tradeport.
“And of course the favourable rand exchange rate continues to fuel international interest in Cape Town, the Western Cape winelands, and the Garden Route, which are globally renowned for the luxury lifestyle, spectacular scenery and exceptional real estate they offer - and among the world’s most sought-after destinations for affluent leisure home buyers.”