South Africa » Market Report

South Africa offers an unparalleled lifestyle and world-class property at incredibly reasonable prices. This has attracted international buyers in ever-increasing numbers. British and German investors are particularly attracted to South Africa' swarm, sunny climate, outstanding natural beauty and modern infrastructure and facilities. Commercial property growth surpassed that of residential growth in 2005. The property prices in South Africa are still low in comparison with the United Kingdom and even though fear of a property growth bubble has led to a slower growth, the property market continues to show tremendous growth. Development land is in high demand in Gauteng and Western Cape. The building and construction industry will continue to benefit from the positive property investment trend.

South Africa is an economic leader in the mining of gold, platinum, diamonds and chrome. There are numerous opportunities for the processing of iron, carbon, and stainless steel. 

The government is proactively promoting tourism. As a result, properties which are developed to be used as short-term accommodation can benefit from an industry grant, which can be worth up to 30% of the value of the property. This can make an enormous difference when you calculate your expected returns, and make your investment decision. There is a significant trend towards purchasing property from both South Africans based overseas, as well as international buyers, as they have realised the value of South African property in a global context. Confidence in the country is at an all time high (60% of the population). South Africa is currently the 8th most optimistic country in the world.

Cape Town has a well-developed higher education system of public universities. Cape Town is served by two public universities: the University of Cape Town (UCT) and the University of the Western Cape (UWC). Stellenbosch University, while not in the city itself, is 50 kilometres from the City Bowl and has additional campuses, such as the Tygerberg Faculty of Health Sciences and the Bellville Business Park closer to the City.

International Property Brokers forecast that real GDP of the South Africa will remain 3.5% in 2009. Market of South Africa is showing strong export and government focus on the infrastructure of the country, which is good for the betterment of the South Africa. International Property Brokers also forecast that the demand for the new property in Cape Town coastal areas will remain high in the next coming years.