The burgeoning economy and investor friendly policies make real estate investment in South Africa an ideal option. While business houses can get offices, executive suits, and hi-tech instant office with ease, the investors looking for profit cannot ignore the factor 400 percent growth in real estate market in the country in the past one decade. The surging price and large-scale development of both commercial and residential real estate investment in South Africa offer a perfect opportunity to get maximum bonus and also win an ultra modern and state-of-the-art office or home in this beautiful part of the world.
Economic Growth and Real Estate Boom
Real estate experts and leading financial institutions view commercial property in South Africa as the best investment opportunity in the world. The domestic real estate market has outperformed American and European countries riding on robust economic growth. While the world had succumbed to economic recession and its aftershocks, rising gold prices kept the national economy on the growth trajectory. It, in turn, gave a fillip to development of real estate in South Africa and the market buoyancy continues.
Business Opportunities and Commercial Real Estate
In the past few years, South Africa has emerged as the financial backbone of Africa. Large numbers of tourist inflow, robust industrial growth, constant inflow of foreign investment, and stable Rand price have created business opportunities in the country. South Africa has also become a key hub for exports to both developing and developed countries. All these have led to development of numerous medium and small business enterprises. Multinational giants are also moving their plants and offices to benefit themselves from highly trained manpower and low operational cost. This has created a positive impact on the demand for commercial real estate in South Africa and lot of related property benefits for investors. While existing business hubs have been redeveloped, newer ones has come to stay. Innovative concepts, such as instant offices, serviced executive suits, and virtual offices, have been introduced to offer greater benefits to new and established enterprises.
Urban Boom and Real Estate Growth
In the last decade, major urban centers in the country have undergone planned transformation. New commercial properties, such as office blocks, business parks, shopping complexes and mall, and apartments offer numerous options for investors and business enterprises. In cities such as, Pretoria, and Johannesburg, innovative instant and serviced offices offer a great location advantage to small and big companies looking for establishments in prime areas.
Government Policies Conducive for Investment in South Africa
The state policies, both at federal and local levels, give a big push to real estate investment in South Africa. The tax holidays given for 2010 FIFA World Cup is still continuing, and tax break up to 20 percent is given on development of new commercial properties and renovation of old ones. This has not only lowered the construction costs but also make commercial property prices attractive, a big draw for foreigners looking for commercial real estate investment in South Africa.
Apart from the above factors, easy financing options also push real estate investments in South Africa. Banks offer low interest rates and large-scale property development offers wider options. In the last two years, real estate investment in South Africa has given 15 percent return, higher than any country in Europe.
