Real Estate Investor Magazine South Africa September 2014 | Page 30

TRENDS

BY MONIQUE TERRAZAS

Finding
Value in SA
Where savvy global investors
are buying

F

oreign buyers bought almost R6.5 billion worth
of properties in South Africa last year and
the percentage of residential property sales to
foreigners has doubled from 2% to 4%. Real Estate
Investor Magazine spoke to Lew Geffen, Chairman of
Lew Geffen Sotheby’s International Realty, about this
trend.

Q: What is driving increased foreign buyer activity?
LG: Foreign buyers are attracted to the South African
property market for a number of reasons. The first
is the substantial depreciation of the Rand, which
continues to make South African property an even
more attractive international investment prospect. If
you’re buying in Euros or Pounds, you’ll get far more
for your money in South Africa than you would in
most sunny places in Europe.
Secondly, South Africa is a stable country that offers
first-world infrastructure and amenities, coupled with
breathtaking scenery and beautiful properties, offering
foreign buyers exceptional value.
It must also be said that these foreign buyers are
astute investors with a keen eye for a good deal, and
when surveying real estate opportunities globally,
an investment in South Africa’s most prestigious
property locations present a solid investment choice.
For example, in Avenue Des Huguenots in Fresnaye,
a property was bought for €224,717 during 2005 and
sold during 2013 for €1.43m, showing a nominal return
on investment of 26% per annum over 8 years. Another
property in Head Road was bought during 2003 for
R3.2m and also sold last year for R26m, showing a
nominal return on investment of 22% per annum over
approximately 10 years.
These two pr