Jones Lang LaSalle officially entered the local market less than a month ago, testament to South Africa’s position as one of the leading emerging markets in the world. The country is well positioned as a gateway to the rest of the continent, particularly into the Southern African Development Community (SADC) and the Southern African Customs Union (SACU).
BRICS membership will position South Africa more firmly on the radar of cross-border real estate investors, with the country offering a compelling mix of first-world real infrastructure, high transparency and well developed capital markets, supporting a vibrant emerging economy.
Commenting on the implications of this development for the country and its real estate market, Jones Lang LaSalle South Africa Managing Director, Mark Bradford: “More now than ever, South Africa is playing an important role as an emerging market and as a facilitator of regional growth. We have a politically and economically stable country and we can offer existing and potential international clients the service they’re accustomed to in the developed world,”.
South Africa ranks 54 in the World Economic Forum’s Global Competitiveness Index (GCI) for 2010-2011 and is the highest-ranked country in sub-Saharan Africa. In particular, South Africa is commended on measures of the quality of institutions and factor allocation, such as property rights, where it is ranked 29th.
This reinforces South Africa’s ranking of 23 out of 81 markets in Jones Lang LaSalle’s Global Real Estate Transparency Index, placing it in the company of Switzerland, Italy, Poland, Czech Republic, Malaysia and Japan. Factors contributing to South Africa’s high transparency ranking include robust listed vehicle governance, with strong auditing and reporting standards, a highly developed legal system, the fairness and efficiency of the regulatory framework relating to real estate taxation, planning and building codes, enforceability of contracts and title, and a strong tradition of property rights.
Joining BRICS will also help to strengthen South Africa’s real estate occupier base by unlocking opportunities for domestic companies expanding into BRIC markets, while global business (particularly from India and China) will be increasingly attracted by South Africa’s potential as a business location and as a springboard into the region.
“We’re excited about the prospects that South Africa has to offer international investors. We provide global and local clients seamless service, while offering them unprecedented access to a first-class international network with local relevance and accountability,” says Bradford.
