A former colony, then a dominion of Great Britain, South Africa declared itself an independent republic in 1961 and today is the richest and most economically developed state in Africa with modern cities and highways. It is the world's largest miner and exporter of gold, platinum, and diamonds – the mining industry accounts for about half of the country's exports. Such branches of the economy as mechanical engineering, telecommunications industry, financial sector, tourism are also developed. GDP per capita is approaching the global average. At the same time, South Africa is a country of contrasts, and in terms of the gap between the incomes of different segments of the population, it occupies one of the first places in the world. The advanced economy is concentrated around large cities, where the predominantly white and mixed population of the country lives.
The undoubted advantages of South Africa include a mild climate (almost Mediterranean on the west coast and almost tropical on the east coast) and the splendor of wildlife. There are many nature reserves on the territory of the country, among which the most famous is the Kruger National Park, where animals from the so–called Big five live: lions, rhinos, elephants, buffaloes and leopards. South Africa, washed by two oceans – the Indian and the Atlantic, is also famous for excellent opportunities for surfing, diving and other water sports. In addition, this is one of the interesting destinations for golf lovers: there are 138 golf courses.
Yesterday and today
In the real estate market of South Africa from 2000 to 2007 there was a rapid increase in prices. The rise was caused by the emergence of a financially stable middle class among the black population and the return of money to the country from offshore, most of which was invested in real estate. The global economic crisis has caused significant damage to the state economy, especially in the field of mining and processing of minerals, which has also affected the real estate market. Housing prices, as reported in a 2009 report by Colliers, have declined to the level of 2006, but in recent months the number of requests has increased, and in some regions there has been a slight increase in the number of transactions.
Brian Falcone, CEO of the South African branch of Colliers Residential, says that his company expects to make good money on the upcoming rise in the real estate market: "Real estate prices are reduced, the market is full of offers, and there are many active sellers who are ready to make concessions. At the same time, banks began to issue loans again and reduced interest rates from 15.5% in December last year to 10.5% in October this year. This clearly indicates that prices will go up again, so it's time for buyers to return to the market."
The championship, which will be held in nine cities, will obviously have a positive impact on the economy of the whole country and will give an additional boost to real estate prices. Recently, the South African government announced the implementation of a state investment program worth $90 billion. These funds, according to the British newspaper The Daily Telegraph, will be invested in projects related to energy production, healthcare and residential real estate.
"Among the places where the championship games will be held, cities located on the ocean or near national parks are of investment interest, which means they will always be in demand among tourists," says Tatiana Vasilyeva, CEO of Alice Estate. This is primarily Cape Town, Durban, Port Elizabeth. At the same time, the expert advises to pay attention to security: it is better to avoid some quarters.
Football and real estate
Durban is rapidly becoming the leading tourist region of the country. It is located in the province of Kwazulu-Natal, famous for its endless beaches on the shores of the Indian Ocean, where you can swim all year round. "This city will be in the center of international attention for a long time," Carol Reynolds from Pam Golding Properties is sure. The apartments next to the new Moses Mabhida stadium are the most in demand today – this is one of the largest sports facilities in South Africa. Prices for two–bedroom apartments here start at $95,000. "Stadium views are more appreciated today than ocean views," says Carol Reynolds, and it's hard to know if she's joking or serious?
The construction of another masterpiece of sports architecture – the stadium at Green Point in Cape Town led to the transformation of the entire area: new restaurants and designer shops opened around, demand increased and property prices rose. Two-bedroom apartments now cost about $300,000 here.
On the V&A Waterfront, in one of the most prestigious areas of Cape Town, a penthouse with a swimming pool and a terrace overlooking Table Mountain can cost $10 million.
An hour's drive from Cape Town is the town of Stellenbosch, surrounded by vineyards where famous South African wines are produced. In the five-star Zorgvliet Vineyard Lodge & Spa resort complex, apartments cost about the same as in the prestigious parts of Cape Town, so some of the objects in Zorgvliet are sold under the fractional ownership scheme. So, for $10,000, they offer apartments with an area of 45 sq. m. m with the right to stay for one week a year.
Wondrous wild world
In the center of the famous Garden Route ("Garden Road") connecting Cape Town and Port Elizabeth, on the shores of the lagoon is the popular resort of Knisna. Nearby, on the coast, in the area of the famous "Heads", one of the most prestigious residential projects of South Africa Pezula Private Estate is being built. Due to the low density – only 15% of the area is given for construction – the owners will feel that they are in a virgin forest, while comfortable living conditions will be provided, including the highest class infrastructure. For several years in a row, the project received the highest awards of the British Homes Overseas Awards and CNBC International Property Awards, which brought it worldwide fame.
Those who seek unity with untouched nature also prefer the banks of the Orange River from the Northern Cape to the Kalahari and Karoo reserves. Here, according to developers, you can see a running cheetah without crossing the threshold of your own house. "South Africa is the most popular African country after Botswana, Mozambique and Namibia for buying real estate in the wild," says Wayne Rabidge of Pam Golding Properties.
The majority of foreign investors in local real estate are British, as well as Dutch, Germans, Israelis and Americans. There are no restrictions on the purchase of real estate for foreigners, but recently, due to the increased flow of immigrants from Zimbabwe, Mozambique and Nigeria, which create competition for the poor, they began to talk about the need for stricter regulation of the market. Everyone is waiting for the reaction of the new president Jacob Zuma. However, on the eve of the World Cup, it would be at least unwise to build barriers to foreign investment.
