Surfing a new wave of awareness
Category From Our CEO
Currently, South Africa is experiencing a surge in popularity reminiscent of the excitement surrounding the Soccer World Cup in 2010. This surge is evidenced by a notable increase in tourist numbers, surpassing 10 million over the past 12 months since the pandemic. Additionally, there has been a noticeable uptick in the number of expatriates returning to South Africa, a trend first observed in December, and a significant rise in foreign investment in the South African real estate market.
In recent weeks, I have personally observed this trend, with a growing number of prospective buyers and investors from Europe, the UK, Africa, the Far East, and even the US reaching out to us to enquire about and schedule visits to view properties we have listed. This heightened interest spans across various property types and regions throughout South Africa.
For frequent travellers like myself, the increased presence of foreigners at major airports is unmistakable. During a recent trip back from the US, I encountered several Americans who were specifically traveling to South Africa to purchase homes or invest in new property developments.
My return journey followed the Leading Real Estate Companies of the World® annual conference in Las Vegas, where I proudly accepted the 2024 Chairman's Award on behalf of my team at Chas Everitt for our unwavering support of LeadingRE programmes, events, and learning initiatives. However, the highlight was engaging in discussions with international real estate leaders on innovative strategies for success in our evolving industry and networking with peers who echoed the heightened interest of their clients in South African real estate opportunities.
While many are already aware of South Africa's appeal in terms of climate, natural beauty, culture, and hospitality, my current focus is on highlighting the exceptional value proposition of South African real estate. Currently, we find ourselves at the bottom of a price cycle in most parts of the country, presenting an opportune time for both local and foreign buyers to invest before interest rates begin to decline. Even in Cape Town, where prices have surged since 2021, there are still lucrative opportunities for foreign buyers, especially for those leveraging currencies such as Euros, Pounds, or US dollars.
For instance, with the average home price in the UK at GBP264,000, one could acquire a magnificent R6.3 million mansion in South Africa. Similarly, with E500,000, which typically buys a modest city home in Germany, one could purchase a R10.2 million home in South Africa. Likewise, for Americans, with the average home price in the US at USD388,000, one could currently procure a R7.2 million home in South Africa.
This presents a promising outlook for foreign buyers, and I believe the more who choose to make South Africa their home, the better. Property purchases serve as tangible forms of Foreign Direct Investment, something South Africa greatly benefits from. At Chas Everitt, we remain committed to diligently working to be the preferred agency for agents, sellers, and buyers in this market segment.
Author: Berry Everitt