Life after the 2010 FIFA Soccer World Cup

Peter Gilmour, Chairman of RE/MAX of Southern Africa, says that in order for the property industry to benefit from this historic event, South Africa must first surpass expectations around hosting it

Commenting on the effects of the 2010 FIFA Soccer World Cup on South Africa’s economy and property industry, Peter Gilmour, Chairman of RE/MAX of Southern Africa says that South Africans should not lose sight of the fact that the world will still be faced with the impact of the economic recession after the event.

“Although I too believe that the World Cup is the perfect opportunity for us to entice foreign investors with our spacious, luxurious properties and natural beauty, the truth is that we first need to successfully showcase South Africa as ‘the country of opportunities’ before any foreign investment can take place,” he says.

It’s only once a positive mindset has been entrenched in the minds of foreigners who have visited our country that potential property buyers will start to consider South Africa as an investment destination of choice, taking our foreign property investment policies into consideration of course.

Having said that, buyers, sellers, landlords and property developers alike should not be blinded by short-term financial gain only. “Reality is that inflated rentals will in all likelihood not prevail while the sustainability of hospitality establishments and / or affordability of other types of property especially acquired for the event can be questioned,” notes Gilmour.

Gilmour advises landlords who opted to buy and /or rent out apartments specifically for this spectacular event to start securing long-term rental contracts at market related prices before post-world cup properties hit the streets. “While a shortage of rental properties in certain areas are currently experienced, prices may plunge as supply starts to outstrip post-world cup rental demand,” he says. This, in turn, will bring relief to the many frustrated locals who currently describe finding affordable properties to rent in certain areas as ‘simply impossible’.

“While a number of landlords and home owners will without a doubt benefit significantly in the short term from this historic and prestigious event, optimism and confidence in the future of our country will most certainly have the biggest impact on South Africa’s economy as a whole,” Gilmour concludes.

Article from: www.remax.co.za