South Africa has developed into as the biggest economy in the African Continent. Its GNP is the highest among African nations and still climbing steadily. With all the economic indicators tending to be in good shape, South Africa is becoming more popular to be the haven for foreign investors. The influxes of foreign investment in the country have brought rapid growth in commercial property development and the construction industry. For this reason, lots of businesses need more space for their offices and industrial complex. The government open the real estate properties to foreign companies and individual ownership. This put more pressure for the booming of the industry as well as in the increasing costs of ownership.
Maybe, a lot of foreign investors still hesitate to invest and buying properties in South Africa because of its apartheid policy. However, purchasing properties in South Africa has many advantages like;
• a good climate
• the value of the home is good with buoyant market
• property buying procedures is simple, easy and fast
Most of its residential, commercial and industrial areas have easy access to modern transportation, water, electric utilities, and communications. Besides, it is located just near the natural magnificence of the South African countryside. Another advantage has an easy access to fresh food and great tasting wines at affordable prices. Today, South Africa is economically stable than ever and had improved in peace and order situation.
There are multitudes of reasons why investing in commercial property in South Africa should be considered carefully, such as follows:
• The South African government is promoting the country in international business community.
• Recent governmental policies are geared toward the balancing of human rights among the white and black Africans and the integration of culture.
• Increased confidence in the South African economy by foreign investors and the strengthening of its local currency.
• The repatriation of funds which was stashed away during the difficult times in South Africa.
While there are still a lot of hesitation on the strength of the South African economy and its integrity in doing social reforms, the South African government is in the right direction. The acceptance of the international business community and foreign government will put the South African nation as the leading destination of immigrants from various parts of the world.
How the commercial property market in South Africa performs?
Well, in 2005, South Africa is the number 5 most popular place of overseas property investment. That year, the property sector had grown by almost 32 percent. Hover, in the ensuing year, it only grows by 15 percent and steadily stabilizing from year to year. There are many property analysts that real estate properties in South Africa are mostly undervalued. Of course, they are expected to grow over the next several years.
The property costs in South Africa depend upon the location. A foreigner can buy property in South Africa without any legal barriers. However, there are some local laws to be followed. It is best to consult a local notary public, an attorney or local property agents before deciding to buy real property in any particular place in South Africa. Generally, here are some additional costs of buying a property in South Africa, as follows:
1. Professional fees of real estate agent, which are open to negotiation.
2. A transfer cost of the property that runs from 0 to 8 percent of the purchase price.
3. The Capital Gain Tax on the sold property.
South Africa is moving further, economically and socially. This movement is making South Africa as an important economic power in the African Continent as well as in the whole world.