South African property market remains upbeat

South African financial figures remain upbeat about future prospects for those looking to buy abroad, especially in the commercial property market sector.

John Loos, of the country’s First National Bank (FNB), said that he expects real economic growth of up to five per cent for the next decade, offering a sound base for property investment.

He said that the FNB base case “is not one of rising interest rates” and that the property outlook remained “solid” for investors according to the report by I-Net Bridge. Though he qualified his statements, he pointed out that South Africa’s housing boom in the 1980s occurred even when interest rates were rising and was overall optimistic.

The healthy investment potential for the country was matched by the Investment Property Databank results for 2005 which showed that South African industrial property gave returns of 33 per cent.

Investment in South African property is attractive when looking at these figures, especially when offering near-double the returns of comparable property in the UK.

Commenting on those findings, Mr Loos said on Moneyweb that he expects industrial property to continue its lead for another two years before being over-taken by office property.

With a comparable legal system and English spoken, South Africa’s appeal to UK investors is likely to receive a boost after these official endorsements of its attractiveness.

© Adfero Ltd

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