SA property boost from Africa!

Posted On Friday, 17 August 2012 11:19 Published by eProp Commercial Property News
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A recent FNB Property Barometer Survey of Estate Agents from John Loos reports a sign of improved confidence in the African economy, with an estimated 20% of foreign investment into SA real estate coming from Africa

John LoosIn turn this dynamic could be driving an increase in foreign buyers once again coming to the South African market, said Lanice Steward, managing director of Anne Porter Knight Frank.

In the second quarter of 2012, the figures of foreign buyers were better than a year ago, according to the report. The estimated high was in 2008, before the recession, where 6,5% of all sales were foreign buyers and that the lowest figure had been 2% in late 2010.

This has increased to an estimated 4% of the second quarter average but, what is of more significance, is the increase of African foreign home buyers as a percentage of the total foreign buyers. This figure has shown a steady increase from the first quarter of 2010 from 8,5% to 20% in the second quarter of 2012, a significant change.

Although this is obviously against smaller transaction volumes than in the boom years, it is still a positive indication of Africa’s increasing economic strength, said Steward.

“The Knight Frank group is represented in nine countries in Africa, and we are seeing more referrals coming in from African countries, particularly High Nett Worth Individuals, looking at both residential and commercial property in the same way as South Africans are moving into businesses and residential areas in other parts of Africa,” said Steward. “Whereas Europe is selling doom and gloom, Africa is showing positive growth indicators. I would agree with John Loos, that African foreign buyers of residential property will increase in years to come.”

Last modified on Tuesday, 15 April 2014 11:27

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