Africans investing more in South Africa's Real Estate than Foreigners

Africans are grabbing a bigger slice of south Africa’s property investments as a depreciating rand in the wake of a peaceful election makes it cheaper for regional investors to buy real estate on the continent’s most prosperous economy.

Analysts told BusinessDay that a consistent economic policy in South Africa and the fact that the country’s general election ended without any major hitch has attracted more high net worth investors from African countries such as Nigeria, Cameroon, Zimbabwe, Angola and Mozambique.

A recent World Report 2014 indicated that the number of financially solid individuals in these countries has increased in tandem with the high economic growth rate experienced in most of African countries.

Property buying trend in South Africa has risen from 16 percent last year to 19.5 percent in the first quarter of this year, according to Lew Geffen, chairman and chief executive, Sotheby’s International Realty company.

Property sales to foreign buyers, who accounted for about 3.6 percent of the total residential sale across the country, topped R6.5 billion ($650 million) worth of property with Africans grabbing a bigger slice of the pie in South Africa last year.
BusinessDay investigation reveals that the depreciation in the value of the rand over the past two years has made South African property more attractive to those buyers with pounds, euros or dollars to spend.

Africa is expected to see the most rapid growth in the creation of millionaires over the next 10 years. These individuals are currently growing t
heir real estate’s portfolios quite aggressively, which accounts for the growing number of buyers from other African countries.
They generally hold about 25 to 30 percent of their wealth in real estate.

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