INVESTMENT HOT SPOTS
• High tenanted properties for steady cash flow .
• Expected intrinsic value increase due to long-term appreciation .
• Benefits of depreciation and available tax benefits .
• Cost-benefit analysis of renovations for improved resale value .
Property Types Offering High Returns and Profits
• AirBnb - flats , townhouses to houses with multiple rooms
• Student Accommodation
• Residential Apartment complexes
• Industrial units
• Self-storage
As the festive season approaches , short-term rentals like AirBnb , holiday houses , and student accommodation are gaining preference over traditional options , driven by increased tourism .
Western Cape The Cape Town residential property continues to see continued growth as the city is seen as the better place to live and do business . It is forcing a semigration trend where people are moving from other provinces such as Gauteng and Kwa-Zulu Natal to the Western
Cape . There are clear reasons contributing to this growth ?
• Municipalities and services are run extremely well
• The road and area infrastructure are well maintained .
• Employment rates are the highest in the country
• Tourism drives high rental demand
• The Residential property sector has consistently been the bestperforming market in SA for more than a decade with the highest house price growth
• Above average rentals with very low vacancies
Ross Levin of Seeff Atlantic Seaboard says the Cape Town rental market is booming , both for longer term residential rentals and short stay accommodation . The return of tourism to pre-pandemic levels combined with the resurgence of events in the city such as the Formula E , Sevens rugby etc . all contribute to the high demand .
Lightstone ’ s assessment of the proportion of sales between R100k and R20m in 2019 and 2023 shows that the Western Cape ’ s share has jumped from 23 % to 27 %, while Gauteng has slipped from 43 % to 39 %. The opening
Real Estate Investor Magazine DEC 2023 / JAN 2024 46