In recent years South Africa has lost its reputation as a property hotspot for Brits, as new affordable destinations - in both Africa and closer to home - have materialised, and interest in established markets such as Spain and France has remained strong.

However, a combination of  the recent strength of the Euro and the fact that, if all goes according to plan, South Africa will be hosting the 2010 Football World Cup, is increasingly leading to investors paying interest to the Rainbow Nation once again.

"While the Euro is strong, Brits are looking further beyond the Euro zone to get more for their money," says Nick Fullerton of currency specialists FC Exchange. "We have seen interest increase by over 20 per cent in the past six months from people who intend to buy  property in South Africa, and Cape Town is currently the most popular destination for Brits buying there." Fullerton continues: "Our clients are saying that now is a good time to invest in property in South Africa for the long term and we believe that the 2010 World Cup, combined with property prices that offer good value for money and increased direct flights from the UK, has fuelled this increased interest in South Africa."

According to the most recent Assetz Investment tracker, potential return on investment levels for the right property in the right location in South Africa were 17 per cent - higher than those expected in more established markets including Greece, Florida and Portugal as well as emerging markets such as Poland and North Cyprus. However, largely due to the unstable political situation in neighbouring Zimbabwe, South African property price inflation has slowed in recent months, and Assetz believe that investment potential in the country is likely to lower in the immediate short-term. Nevertheless, Fullerton says that this is still a good time to at least consider looking at the merits of a South African property. "Over recent months property prices in South Africa have seen falls but it demonstrates that people are being more sophisticated with their investment strategies and looking for a return in the longer term as the UK property market stalls," he says. "Countries that host major sporting events often experience buoyant property markets in the immediate run-up and after these events. Also rental yields close to stadiums and training camps can increase dramatically during the competition as the demand for temporary accommodation grows."

Search for property in South Africa

Article published 11 July 2008