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Strong demand for property from Nigeria

The largest number of enquiries have come from Nigeria where the oil boom has resulted in very well-heeled entrepreneurs seeking greener pastures.

With the Rand hovering around R10 to the US Dollar, property in South Africa has become a real bargain.

Fred Steffers, managing director of Krugersdorp-based Apex Property Brokers said he had numerous enquiries from several different countries and the demand from countries in Africa was especially strong.

“We’ve notched up several ales of upmarket properties in gated estates across the West Rand.

“Because we deal mainly with property to the West of Johannesburg, house prices are substantially lower than in most other cities in South Africa. This means that buyers get substantially more value for their money. The rapid devaluation of the local currency has sparked off something of a mini property boom and we currently have more buyers than sellers,” he said.

For some time upmarket properties on the West Rand have been in demand by pensioners in especially southern Europe who are seeing their pensions and other benefits erode as a result of austerity measures introduced by the European Union. Many of the numerous enquiries he had from Europeans who were on holiday in South Africa during November and December last year and who were looking to resettle have resulted in sales.

“Obviously the really well-heeled crowd are looking at the Western Cape including the Winelands and the KwaZulu-Natal South Coast.

“For the hard-pressed Greeks, Spanish and Portuguese nationals, something that offers substantial, better value for money and is at the same time affordable has brought the West Rand into sharp focus.

“Offering some of the lowest prices per square metre for upmarket properties anywhere in the world, we have been marketing houses and town houses in upmarket areas such as Noordheuwel, Featherbrooke and Chancliff in Krugersdorp while properties in Constantia Kloof, Ruimsig and Helderkruin in Roodepoort have been moving rapidly,” Steffers said.

The largest number of enquiries have come from Nigeria where the oil boom has resulted in very well-heeled entrepreneurs seeking greener pastures.

“For some time now South Africa has been popular with Nigerians. The clients we get from that region are generally well-off buyers who often want to buy a swish townhouse as a holiday home or as a safe haven.”

The fact that bonds are available fairly easily if the buyer is able to ante up a sizeable deposit is an additional factor that makes the country an attractive proposition as is the fact that interest rates are at historic lows.

He said South Africa offered huge advantages for buyers from developing nations in Africa.

“The highly developed state of our infrastructure is a strong draw card and the fact that they are generally made to feel very welcome with established Nigerian communities across South Africa makes South Africa a very attractive proposition for them,” Steffers said.

Overall prices range from just over R1 million to properties in the R3 million to R4 million range.

“We see many more modest properties – mostly in older suburbs – selling for substantially lower prices.”

“We are looking at setting up a franchise in Nigeria from where we will be able to service the whole of West Africa. We have received enquiries from real estate agents in parts of Europe who want to market our property portfolio.”

A positive fact for foreign buyers is that house prices, according to almost all indices, are at best flat with a similar outlook going forward.
Another positive aspect of buying property in South Africa is the fact that South Africa was seen as a safe haven with a stable democracy free of wars and revolutions, Steffers said.

At the top of the list are buyers from Nigeria and Uganda, with solid interest from Francophone countries such as the Ivory Coast.

For more information contact Fred Steffers on 083 268 6779 or browse www.apexpropertybrokers.co.za.

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