South Africa’s Healthy Tourism and Economy Bode Well for Property Market

South Africa’s turbulent political history does nothing to hamper investor interest in the potential of its real estate.

Apartheid may be fresh in people’s memory and many black South Africans may still suffer from poverty, but there is fresh optimism about the country’s future. The country’s economy saw a five per cent growth last year and experts believe the growth is a sustainable one. While there is still much ground to make up, both economically and socially, there are real signs that South Africa is a nation in healthy recovery.

Residential land prices in the country rose by 14.4% last year while properties in areas of Cape Town started to see impressive price increases. The central business district of the city is experiencing great rejuvenation with safety high on the agenda and good housing becoming more available. Around 3,000 new inner-city apartments have come on the market in the last six months. Some experts are predicting that properties in the business district will experience huge price hikes and believe that the city’s gentrification is largely the cause.

South Africa already draws nearly 7.5 million foreign tourists a year thanks to its opposite seasons to the Northern Hemisphere and the minimal time difference. The country’s hosting of the Football World Cup in 2010 will only serve to add to its attraction to tourists, as well as investors.

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