Investments

On the following page you can find out more about investments and real estate purchases in Cape Town. South Africa has enormous potential for investment opportunities and is one of the most promising emerging markets in the world with its unique combination of well-developed infrastructure and a vibrant, free market economy. Germany is one of the most important trade partners in South Africa. Over the last two years, Germany has risen to second place, with all trading volume behind China and in front of the USA. This development is supported by highly developed financial, legal, communications and transport infrastructure. As an important emerging market, South Africa is a bridge between Africa and other African markets. Further information on economic and political relations between Germany and South Africa can be found on the following page: Ministry of Foreign Affairs

Investments in Cape Town - South Africa Properties

Investments Cape Town Properties

 
Investments in the Western Cape region
The past has shown that real estate investments in Cape Town and the entire Cape region for that matter represent a secure investment platform. South Africa offers numerous opportunities to grow capital, particularly with newly-build commercial properties which seem to hold high priority in the Cape, with a consistent demand that proves this is not just a short-term trend. Herewith a few investment possibilities:

Guest houses
Many immigrants from overseas are looking for guesthouses in the Cape region, Cape Wine-lands and Garden Route of South Africa as a lucrative investment opportunity. When selecting or buying a guest house, location is the most important factor to consider. B & B's in the vicinity of Table Mountain and the city centre have especially proven successful. Prime locations include all outskirts of the city centre, Sea Point, Bantry Bay, Clifton, Hout Bay, Llandudno and definitely Camps Bay. In the wine regions it gets trickier, with Stellenbosch and Franschhoek being the exceptions. These two wine regions are very popular with many tourists from all over the world. Somerset West is a popular holiday destination especially for golfers, but regions close to the city are highly recommended.
 
Holiday houses, villas and apartments
Numerous investors have put money into villas, holiday homes and apartments in popular Camps Bay in the past. This region has provided the highest returns on residential and holiday properties over the past few years due to the highest rental rates being realised in this classy suburb of Cape Town. Bantry Bay, Clifton, and its outskirts are especially recommended, however the coastal region is always first prize.
 
Commercial real estate
Newly-build office properties are very much in demand in the Cape Town area and investment is advisable right up to the Durbanville wine region - the Golden Mile of Cape Town. Many internationally renowned companies have settled and invested in this wine region.
 
Hotels
Although there has been criticism of the high number of hotels in the past, particularly with regards to infrastructure projects leading up to the 2010 FIFA Soccer World Cup and the necessary hotel establishments, occupancy rates and overnight stays for the Cape region continue to show positive development.
 
Wine-farms
There are not really many wineries in the Cape region that generate above-average profits. The most successful wine farms, which today are almost exclusively owned by domestic and foreign investor groups, are also not for sale. Rich South Africans are however buying wineries in the Western Cape, where the clientele is not concerned with the traditional operation of an agricultural business - the investment in a wine farm is viewed above all as an investment in a lifestyle, yet there are of course, some successful wineries managed by Europeans.
 
This article serves purely as a report on our experience as we have been in the Cape as well as Winelands regions for nearly 20 years.
 
Please do not hesitate to contact us if you have any questions or require further information.
 
Your Cape Town Real Estate Team