SA on the radar of global property investors
Category From Our CEO
I've just spent several weeks abroad, and while it was really enjoyable to experience different places and cultures again after all the Covid-19 travel restrictions, it's still always good to come home.
During my travels, I was struck again by just how much SA has going for it - despite the crime, corruption and power problems we all know so well - and by the increasing awareness of its attractions among global property investors.
What is more, this awareness now goes well beyond our good weather, beautiful scenery and wonderful wildlife to focus on SA's relatively low cost of living; its safe geographical location; its access to the $3-trillion African market and not least, the remarkable property value on offer here, especially for those buying in dollars, euros or pounds.
With the cost of living rocketing everywhere due to the post-pandemic and Ukraine war-driven supply chain disruptions, inflation at multi-year highs and interest rates being raised in response, the news is currently full of stories of families who are relocating from the US, UK, Hong Kong, Singapore, Canada and even New Zealand in search of more affordability and a better quality of life.
And South Africa is now definitely on their radar, with the most recent Mercer Cost of Living survey placing Cape Town 178th and Johannesburg 185th out of the 209 cities surveyed globally, and Expatistan ranking SA as being cheaper than 60% of the other countries in the world, with a monthly estimated cost of around R43 000 for a family of four.
Also in SA's favour is the fact that it is located just an overnight flight from the UK or Europe, where many people are currently afraid of the Ukraine war spreading westwards. It is also, of course, a good distance from the North Korean nuclear threat in Asia, and attractive to US families who are not only struggling economically, but worried about the extreme polarisation and rising violence in their country.
For business people, SA is definitely the preferred gateway to Africa and its huge economic potential as the African Continental Free Trade Agreement (AfCFTA) takes effect. The country offers a first-rate banking and financial infrastructure, excellent logistics capabilities, upmarket housing and schooling options - and none of the religious strife currently evident in other gateway countries such as Kenya and Nigeria.
Indeed, the general consensus outside of SA seems to be that while the country does have some serious problems, these are still quite capable of being fixed with the application of the correct skills, technologies and investments, while those currently enveloping several more developed countries will probably be much more difficult to resolve.
All of which bodes very well for our residential property market, which continues to thrive despite several interest rates increases since December - and which we, as the SA affiliate of Leading Real Estate Companies of the World®, continue to promote to our colleagues, clients and friends around the globe.
Author: Berry Everitt