Published: 9th September 2013
A new report out by Knight Frank has shown some interesting trends from foreigners buying property in South Africa, as investors have chosen to purchase increasingly around the popular vineyard areas within the Western Cape.
As with so many countries, the South African property market has suffered decreasing values in recent years as a result of the global economic downturn. More recently however, there are suggestions that the green shoots of recovery beginning to emerge and an increasing number of foreign investors are looking to buy property in South Africa, often purchasing and up to 40% below market value.
Demand for vineyard property in South Africa has increased significantly in recent years, as many people seek properties within the beautiful surroundings of destinations such as Constantia, Stellenbosch and Franschoek in the Western Cape. At present, South African vineyard property is valued at around £50,000 per hectare, depending on the location and scale of the winemaking operation at the property.
The news from Knight Frank bodes well for the South African property market, which many feel is at the beginning of a more sustained recovery. Demand for property in South Africa from overseas purchases has fallen over the past three years, however the signs are that investors are beginning to return to the region.