South African Luxury Homes Attracting Overseas Buyers

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South Africa is seen as being a safe haven in which to invest; its stable banking system and growing economy a world away from the Eurozone crumbling under debt. Johannesburg is proving to be particularly popular, and the market for luxury homes is especially active.

Overseas Property Professional magazine reports one agent from the country who specialises in finding properties for overseas clients, as saying that the return of South Africa to the attention of foreign investors was inevitable, "especially in the light of the economic distress in Europe."

Sellers at the luxury end of the market are often able to wait for a sale, and this has meant that many luxury homes have retained their values, especially as buyers tend to put down large deposits. However sellers have also become more realistic about their asking price.Although South African property is proving to be popular with overseas buyers, there are an increasing number of new South African millionaires.

Credit Suisse has estimated the number of dollar millionaires in the country will increase by nearly 3 times over the next five years, from the current 71,000 to nearly 250,000. The newly wealthy are likely to become more active as both buyers and sellers of luxury homes. Luxury property in South Africa is relatively cheap when compared to similar properties in other major cities around the world.he sinking exchange rate of the rand is prompting many overseas property buyers to turn their attention to the opportunities offered in South Africa.

Berry Everitt, managing director of property company Chas Everitt International, added that 30 per cent of the enquiries received by his business now came from overseas. He added: "People all over the world are searching for safe havens for investing and South Africa with its stable banking system and growing economy is increasingly seen as a good option." While most enquirers were British, American, Chinese or German, he added, "we are also seeing interest among investors from many other European and Asian countries, as well as Russia and the Middle East."

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