An increasing number of investors in Pakistan are purchasing property in South Africa, as doing so is relatively convenient and results in an annual ROI ranging between 20 and 30%.
If you are thinking about investing in property in South Africa, factor in the following:
- Pakistani investors can purchase residential and commercial property; the most popular options include apartments, houses and retail space.
- The purchase prices of built property increase by 10 to 13% every year.
- The average rental yield ranges between seven and eight percent of the purchase price.
- Property transactions can only be conducted by real estate agents that are registered with the Estate Agency Affairs Board in South Africa, a regulatory body.
- Once you have chosen a property, you must provide the seller with an offer letter through your real estate agent; the letter will remain valid for a specified period of time during which the offer will be irrevocable. Once the offer is accepted, it will serve as a sale agreement. In order to have the property registered in your name. This process takes nearly up to six weeks.
- Lucrative property destinations include Cape Town, Johannesburg and Pretoria.
Purchase price range:
- Apartments
Available sizes: 120,150 and 300 square meters
Price range: Rs 100,000-200,000 per square meters
- Houses
Available plot sizes: 200, 500 and 1,000 square meters
Price range (house): Rs 150,000-300,000 per square meter
Price range (vacant plots): Rs 70,000-150,000 per square
- Shops
Available sizes: 50,200 and 500 square meters
Price range: Rs 200,000-400,000 per square meter
By Syed Wajeeh-ul-Hassan Naqvi. Information provided by Durr Estate, Cape Town, South Africa
