Estate agents are reporting an increased interest in property in South Africa due to the weakness of the countryââ¬â¢s currency. The rand has declined sharply since May making property in the country more attractive to overseas buyers.
Luxury homes in South Africa selling well
Property Abroad reports that ââ¬ËSouth Africa is seen as being a safe haven in which to invest; its stable banking system and growing economy a world away from the Eurozone crumbling under debt.ââ¬â¢
Luxury homes in South Africa are proving particularly popular with foreign buyers. The website reports that sellers of luxury homes are often prepared to be patient when selling, meaning that high value homes have tended to retain their values, particularly as buyers tend to put down a large deposit.
Johannesburg is currently one of the most popular locations with buyers, partly because the cost of luxury homes in the city is relatively low compared to similar properties in other major global cities.
Both foreign and domestic demand for property in South Africa increasing
In addition to overseas buyers tempted by the weakness of the rand, domestic demand for luxury homes is also on the increase. Research from Credit Suisse has estimated that the number of dollar millionaires in South Africa will more than treble over the next five years, from 71,000 to almost 250,000. This increase in wealth will also drive the demand for high end homes.
However, while there remains high demand for luxury homes from both overseas and domestic buyers, the low to medium end of the property market in South Africa is picking up more slowly. A recent survey found that there was a rise in demand for property in the country as well as an improved level of confidence amongst estate agents, although the increases were slight.
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