South African investors looking to the UK property market
South Africa’s dramatic economic fluctuations have sowed uncertainty in certain local investment markets, and paired with a consumer price pinch, many investors are now looking abroad for property investment opportunities.
“During 2017 we saw a steady decline in the residential and rental markets, despite periodic reprieves. Certain markets certainly defied buyer weariness, however they were largely centralised to higher LSM investor regions like the Cape Peninsula, Somerset West and the Northern Suburbs of Gauteng,” says Bram Davies, Managing Partner at Sigma Property Hunt in London.
“Due to the political climate and rhetoric from Government on property ownership, we’ve noticed a renewed interest in the UK property market from South Africans. As a property acquisition consultancy assisting the South African investor with purchasing property in the UK we have a steady pulse on demand.”
According to a comprehensive report on London’s foreign investment in housing, foreign buyers snapped up 3 600 of London’s 28 000 newly-built homes between 2014 and 2016.
In other research, by Colliers, foreign investors currently account for about 75% of central London commercial property investment.
“The United Kingdom offers foreign investors high-return investment opportunities in a stable economy with an intense focus on growth and stability. It is important that South African buyers understand the immense opportunity investing in UK property presents – world-class infrastructure, with an array of architectural and modern technologically advanced choices,” says Davies.
He says the United Kingdom has recovered well after the global recession, and the demand for property in the UK is high.
“With this being said, it is important to acquire the services of an acquisition agency with highly specialised consultants to ensure your property needs are met. Often unique and high-demand investment properties are sold before they are advertised on the open market,”