Statistics indicate that approximately 3% of properties sold in South Africa are purchased by international buyers. This number might seem a touch low, but with the ever present interest in local properties from African buyers, South Africa still holds a lot of value to their investments.
These international buyers are mostly from Ghana, Gabon, Mozambique, Angola, DRC, Zambia, Namibia, Nigeria, Botswana, Kenya and Zimbabwe. The properties they’re investing in are valued between R800 000 to R10 million and sometimes beyond.
The buyers consist of business executives, including entrepreneurs, who travel to South Africa often. They might not be trying to buy a property for sale in Southlands, but where are they looking? The hotspots for these buyers are centred around business hubs and this is particularly evident in Gauteng where Fourways, Sandton, Sandhurst, Hyde Park and Houghton, according to chief executive of the Pam Golding Property group, Dr Andrew Golding.
He continued, “Others with children attending schools and universities here look to buy a home where they can reside when visiting during vacation periods or purchase a well-positioned apartment as student accommodation for their adult children, coupling as a sound investment. Some investors look to own a getaway holiday home in a highly desirable location, such as Cape Town’s Atlantic Seaboard, Southern Suburbs and the Blouberg area; the Cape’s Boland and Overberg regions, namely Stellenbosch and Somerset West or Hermanus, Kleinmond and Onrus; or the scenic Garden Route, for use by their immediate family for short or extended time frames during the year.”
According to Carol Reynolds, Pam Golding Properties area principal for Durban Coastal, new developments have attracted a lot of interest particularly from Nigerian buyers. She concluded, “Most are interested in secure estates near the coast. They travel in Africa and want a base here in KZN – a holiday home to double up as a base for business meetings. They look at the upper end of the market and security is paramount.”
So while South Africa might not be attracting huge property investments from international buyers, it’s nice to know that the continent has enough faith in the economy and infrastructure to invest in South Africa.
