Irish Times recently reflected on South African property prices in an article looking at value compared with Irish property prices and this is certainly not the first article this year about the value offered to Irish buyers looking for a second home overseas and colleagues of mine confirm a similar modest but discernible rise in interest in the UK.
Chas Everitt Cape Town South is one of very few South African real estate businesses to retain a permanent representation in UK and Ireland to assist European clients.
“Enquiries flatlined during Covid to such an extent that the increase in inquiries I have had since the later part of last year were first treated as email scams! New economic uncertainties linked to the war in Ukraine and the EU Central Banks inflationary money creation have resulted in a changing perspective on where a second home may be a good investment, including South Africa and South America,” said de Villiers, who also represents a large Brazilian real estate group.
“More people are looking for better returns, safe investments and investor friendly destinations in emerging markets as European investments loose their shine. The Cape Town property market has performed very poorly over the last few years so prices are very attractive for Euro and Sterling buyers. About 65% of the buyers we are engaging with are looking for rental returns not for their own use. While South Africans bemoan the value of the Rand the fact is although it is volatile it is still about the same value to the Euro as it was 5 years ago.
The Euro and Sterling are under pressure, and savings in both UK and Ireland attract way below inflation rate returns. Added to this, rental legislation in Ireland and the UK is increasingly unfriendly to landlords and ‘pro-tenant’. For example caps on rental increases have already been effected in most urban areas in Ireland. With a Labour government looking more likely in the UK and tenant friendly Sinn Fein looking increasingly likely to win an Irish election, some property owners are taking advantage of high property prices in Ireland and in the UK to sell and are looking afresh at global property opportunities. Traditional second home markets in Spain and Portugal for example are still very popular as they are a practical short flight away but for investors these properties are showing poor rental returns as more and more people are adding supply to the rental market,” said de Villiers.
More good news for Cape Town property
Recently Chas Everitt Cape Town South marketed a Spring 2022 eZine on Cape Town Property in Ireland, on social media, and the interest was such that the franchise decided to produce the Cape Town South eZine quarterly.
Link here for the latest Spring 2022 eZine
Andre de Villiers +353 830034651 or andre@everitt.co.za – 35 Years South African property experience.
In person or personal online consultations available.