Economy 		Printer Friendly Page



 

Economic Synopsis

Since 1994 and the end of apartheid, South Africa (SA) has changed and developed at a phenomenal rate. SA's 1st world infrastructure, education programme, and abundant natural resources are rapidly moving the country away from its historical problems and into the new millennium with a very positive and exciting outlook.

As the ‘hangover' from 1994 has worn off, the country has delivered consistent positive growth with property proving to be one of the most active and exciting sectors. Although property price rises have been the highest in the world for the last 3 years, they are still a fraction of comparable property in Europe. The revelation that the 2010 Soccer World Cup is to be hosted by South Africa means that the country is set for yet another 5 years of economic growth and investment opportunity which will have positive implications for years to come.

With 3 bedroomed, detached houses comfortably available for as little as £85,000, there are options for everybody to participate in the lifestyle and financial opportunity that South Africa offers. 		 



 


Property Synopsis

Residential property has grown by an average of 32% p.a. over the past year, with some sectors (golf /wine/ retirement estates) experiencing much higher returns. In addition to the 'facts and figures' Cape Town was recently voted as the second best place in the world to buy property by the Channel 4, “A Place in the Sun” TV programme.

The most important thing for any foreign buyer to know about purchasing property in SA is that there are no restrictions on foreign ownership. This was in fact clarified by the government recently when they finished their 'Property Review' and decided to leave the current status unchanged.

In addition to this, it is perfectly legal to bring in, and take out, foreign currency, including any gains that have been made on that investment. Obviously CGT (Capital Gains Tax) would have to be paid, but only at c. 10% of the gain, it is not an onerous amount.

With the very low cost of living, the fantastic Mediterranean climate and the stunning scenery, SA is fast becoming home to a large number of overseas ‘swallows' spending 6 months a year away from the European winter.

Due to the number of worldwide disasters in the last few years, South African tourism has grown phenomenally. With the rand now stabilised against the other major currencies, tourism is continuing to grow with all major airlines increasing their seasonal flights to Cape Town every year. In 2002, the number of tourists grew by 21% from the previous year. Coupled with the hosting of major international sporting and business events, the number of people visiting SA is growing continuously. This increase in awareness has created a very active overseas buyers market for residential property, due to the obvious beauty of the country and the very low cost of entry.

The Western Cape

Approximately 80% of all overseas buyers in SA buy in the Western Cape. That is why our first office is located here. Property prices in the Western Cape increased by a record of 32% between over the past year, up until February 2005.

Not only is Cape Town the favoured location for international property investment, it was also voted the best city in the world in the 2004 Daily Telegraph Travel Awards, and the British Airways In-Flight magazine, “Highlife”

Seven million people per annum now visit the well known Victoria and Alfred Waterfront Development in Cape Town, often on-route to the beautiful Winelands, and the Garden Route.

The Central Business District (CBD) of the city in currently undergoing a major face to the tune of R7 billion's worth of investement.

The Western Cape's climate, stunning scenery and 1st world infrastructure make it the most visited province within SA. Being the cultural and holiday destination of the country creates a wonderfully relaxed and friendly atmosphere that is enjoyed by both the locals and visitors alike.