Real Estate Investor Magazine South Africa December 14/ January 15 | Page 62

AFRICA

BY ANEESA ARSHAD

Top5Tips

for Investing in Emerging Markets
Growth in emerging markets presents significant
opportunities for investors

G

rowth in emerging markets presents significant
opportunities for investors, including those
in the real estate sector, to respond to the
demand. A recent report estimates 20% net annual
returns in Sub-Saharan Africa, with urbanisation and
population growth. Given the geographical proximity
of South Africa to the rest of Sub-Saharan Africa, it
is in a unique position to benefit from other aspects
of real estate-like construction and financing (as
most materials are currently imported). The cost of
borrowing money locally is very expensive for investors.
According to Aneesa Arshad, CEO and Founder of
Lamudi’s East and Southern Africa (EASA) region,
“Returns in neighboring African countries are on
average higher than what South African investors will
receive in their home country.”

“Returns in neighboring
African countries are
on average higher than
what South African
investors will receive in
their home country.”
60

December 14 /January 15 SA Real Estate Investor

Top tips for investing in emerging African markets
include:
1. Familiarize yourself with local laws and
restrictions
Before investing in emerging real estate markets,
investors must gather accurate information about
the laws and restrictions, which are specific to
the country. Foreign investors face restrictions on
buying property in some emerging countries. Make
sure you check official government information
and get in touch with local lawyers, as well as
regularly reading the news to stay up to date on
any developments.
2. Take a long-term view
Take the time to watch the real estate market and
closely examine the long-term outlook before
investing. Within regions that are subject to
volatility, it is especially important not to rush into
a final decision. Instead, try to take a long-term
view of the market outlook. Property investments
are always long-term decisions that must be well
informed . This is particularly true in emerging
markets that are highly perceptible to change. The
best way to be prepared is to use independent,
verifiable sources that offer local and national
information to potential investors.
3. Find local partners
Finding a suitable lawyer, translator, or certified
local real estate broker who can be your contact on
www.reimag.co.za