South Africa’s Property Market Benefits from Hosting World Cup
As South Africa prepares to host the 2010 FIFA World Cup, it is predicted that the country’s real estate market will be one of the areas that benefits most as a result.
The South African property market is currently enjoying a period of growth, which between now and the end of next year is forecast to reach 15%. Low-cost housing is providing opportunities for short-term property investment, as many buyers are opting for smaller properties, such as two-bedroom townhouses or duplexes, and retaining them for around two years before selling them on to cash in on the capital appreciation.
South Africa is also attracting buy-to-let investors, keen to capitalise on the country’s popularity with overseas and domestic visitors, and is promoting areas including the Western Cape and Mpumalanga in the north-east.
Investor confidence in the future of South Africa’s property market was bolstered by a promise of future investment at last year’s World Economic Forum in Cape Town. The Investment Climate Facility (ICF), a new organisation formed to create a more appealing environment in Africa for potential investors, secured in excess of $100 million of funding. The ICF’s Chief Executive, Omari Issa, told ‘Voice of America’ that Africa’s future is “….full of resources, full of potential. The issue really has to do with just releasing that potential”.
Buyers are advised against borrowing in South Africa to purchase a property, as the current interest rate is 12.5%. Buying off plan could be an alternative for potential investors.
The South African property market is currently enjoying a period of growth, which between now and the end of next year is forecast to reach 15%. Low-cost housing is providing opportunities for short-term property investment, as many buyers are opting for smaller properties, such as two-bedroom townhouses or duplexes, and retaining them for around two years before selling them on to cash in on the capital appreciation.
South Africa is also attracting buy-to-let investors, keen to capitalise on the country’s popularity with overseas and domestic visitors, and is promoting areas including the Western Cape and Mpumalanga in the north-east.
Investor confidence in the future of South Africa’s property market was bolstered by a promise of future investment at last year’s World Economic Forum in Cape Town. The Investment Climate Facility (ICF), a new organisation formed to create a more appealing environment in Africa for potential investors, secured in excess of $100 million of funding. The ICF’s Chief Executive, Omari Issa, told ‘Voice of America’ that Africa’s future is “….full of resources, full of potential. The issue really has to do with just releasing that potential”.
Buyers are advised against borrowing in South Africa to purchase a property, as the current interest rate is 12.5%. Buying off plan could be an alternative for potential investors.
posted by Obelisk International at 4:23 pm
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