As the African continent’s economic hub and as a country blessed with spectacular natural landscapes, South Africa is ideal for property investment. If you’re looking to start the coming year with a promising investment opportunity, bestrealestatedirectory.com suggests giving real estate a try. Or you might consider owning a piece of property in these cities and suburbs in South Africa.
Here are some of the best cities for real estate investments:
Johannesburg is South Africa’s biggest city and economic hub, where manufacturing and retail businesses contribute much to the country’s growth. It is a sprawling metropolis linked by world-class highways and networks. Real estate development in the city is enjoying an upswing, thanks to the city government’s regeneration programs in the inner cities that brought the middle and upper-income earners back to Johannesburg.
A primary benefit that you can get when investing in Johannesburg is affordability, as properties in the city are relatively cheaper compared to other cities. Real estate investment in Johannesburg is ideal if you don’t plan to sell right away and getting passive income for the long-term is your basis for investing.
You can buy a piece of property now at a relatively lower price and have it rented. Bigger returns are possible especially if you park your money in suburbs having the potential to give your money good returns.
Rosebank is rapidly expanding its commercial zone. As more job opportunities arise, you can expect more workers and residents in the area, as people want to live close to their place of work for convenience and to save time. The influx of people, in turn, will drive demand for residential space.
Because of its proximity to the planned Gautrain station, Modderfontein is tagged as one of the hottest upcoming investment properties in the province of Gauteng. Many are predicting rosy opportunities for residential space, as there will soon be an increase in the number of high-rise apartments and cluster homes.
This suburb is known to have one of the fastest growing residential and commercial developments in the city. South Africa’s big-time developers are continuing to invest in Fourways, and it’s expected to evolve into a mini-city. In keeping with the area’s rapid expansion, median prices for freehold property have grown by more than thirty percent over the last five years.
2. Cape Town
Cape Town is tagged as one of the world’s most livable cities, nestled on the shores of Table Bay and offering visitors and residents a cosmopolitan lifestyle. Like Johannesburg, the city of Cape Town also has its real estate gold mines, especially if you prefer investing in the luxury property market.
If you want to own rental property in one of South Africa’s prime tourist destinations, try finding one in these suburbs.
- Camps Bay. Traditionally, Camps Bay is a real estate luxury market, with most properties being used as secondary or holiday homes. In a downturn, luxury vacation homes are usually the hardest hit. This is why homeowners who want to sell are listing houses at lower prices. If you decide to invest, you’ll have the chance of owning a piece of property in a desirable location boasting of sandy beaches, spectacular ocean sceneries, and a vibrant nightlife.
- False Bay. False Bay gives excellent value since it is still part of Cape Town but distant enough to provide respite from the hustle and bustle of the city. In False Bay’s property listings, you’ll find single-room apartments, seaside mansions, or mountain villas for sale. Housing prices are not as affected with real estate market fluctuations as other areas. Price adjustments are lower in a recession and increases are not that substantial in a bull market.
The City of Ekurhuleni is brimming with opportunities. With South Africa’s busiest airport nearby and over two million tourists visiting yearly, it’s not surprising why it’s one of its suburbs, Kempton Park has been identified as a property hotspot.
- Kempton Park
Kempton Park’s real estate listing is diverse. You can have your choice of vacant lands for residential or commercial development, as well as one to two-bedroom units, houses in gated communities, or luxury estates. You can find a property to match your investment budget. The suburb is highly accessible, as it can be easily reached via the Gautrain railway or the OR Tambo International Airport.
Here are reasons why real estate investment is booming in South Africa:
- The political turbulence that scared investors before is long gone and the government is serious in solving the current housing shortage. Such focus will have positive effects on the growth potential of the property market.
- With high interest rates, more South Africans are opting to rent rather than purchase a home. This makes buy-to-let a promising venture for investors especially in the larger cities.
- A growing middle class is driving housing demand.
- You don’t pay for value added tax and stamp duty when you purchase a property in South Africa.
- Property developers are accorded tax breaks of up to twenty percent. Because of these tax benefits, the country’s commercial property market is booming.
Success in a property investment begins with the right location, along with other factors like prices, earning potential, and taxes. If you plan to buy your first property or add to your investment portfolio, consider the real estate opportunities in South Africa. If you choose well, you might hit your investment profit targets earlier than you think.