An increasing number of our readers are interested in spreading, diversifying and reducing their overall risk of direct exposure to certain property markets and one of the most talked about of these markets is the South African real estate sector which offers potentially lucrative returns over the longer term, but which could suffer the slings and arrows of outrageous fortune in the form of short term knocks and destabilising over-reactive behaviour. This article therefore provides a South Africa property fund overview with the angle of a comparison to direct market exposure for our interested readers.
According to statistics and analysis released this week by South Africa’s First National Bank (FNB), it could be time to sell investment property in South Africa particularly if you own assets in the likes of Durban, Gauteng or in Cape Town.
Speaking at a strategic review session recently, the president of the South African Property Ownership Association (Sapoa) reported that international investor confidence in the real estate market in South Africa is at record low levels despite the fact that a number of key factors means that there is still great investment potential in South Africa.
New proposals that will prevent the sale of real estate in South Africa to foreigners are under consideration by the government and they are already having a negative effect on the property market in South Africa according to our local sources.
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