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M I D D L E E A S T & A F R I C A
M I D D L E E A S T
& A F R I C A
he residential property market in
South Africa has shown
extraordinary resilience given
the general slowdown and
uncertain domestic and global
economic situation, believes
Andrew Golding,
CEO of Pam Golding Properties, a
Savills associate with a network of 300
offices in sub-Saharan Africa. There
are several pockets of buoyancy, led by
South Africa’s Western Cape province.
‘We’ve seen an influx of people
relocating here from the north of the
country, creating high demand for
property,’ says Golding. ‘A large
proportion of these buyers settle in the
greater Cape Town area, making it the
top-performing metro housing market.
‘South Africa also attracts young
professionals from the UK and Europe,
especially those with IT skills and a
sense of entrepreneurship,’ he adds.
‘They’re attracted by job opportunities
and the outdoor life, but they also
appreciate the value for money.
Properties can be 10 times cheaper
here than in their home cities.’
Among other pockets of buoyancy is the
Eastern Cape region, where major infrastructure
investment is boosting economic activity,
employment and property development in coastal
cities such as Port Elizabeth and East London.
Port Elizabeth, where the number of freehold
properties has risen by 22% in the past five years,
is one of the least congested cities and likely to
attract buyers taking advantage of its economic
revival and relatively affordable property. Pam
Golding Properties reports that local agents are
already receiving more enquiries for prime
property in the region.
In the Middle East, low oil prices
have impacted on government
spending on infrastructure and
property development in the region.
Significantly, there is also an indirect
effect on the population’s buying
confidence since a high proportion of
residents in the Gulf states (Kuwait,
Bahrain, Saudi Arabia, Qatar and the
UAE) are directly employed in the
public sector.
In the UAE, Dubai has fared better
than most because its economy is less
dependent on oil, which is only a small
share of GDP. Instability in the Middle
East has also benefited Dubai in terms
of the Emirate being seen as a
comparatively safe haven by investors
from other Gulf states.
‘Mid-market properties in Dubai –
apartments and villas between
approximately £200,000 and £800,000 – are doing
relatively well,’ says David Godchaux, CEO
of Core Savills in Dubai. ‘Newer types of
development gaining interest in Dubai are lower-
rise apartment buildings in attractive, lifestyle-led
settings where residents can walk to amenities
rather than getting in a car. We expect to see more
of these in the future.’
T
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SOUTH AFRICA
IN STATS
House price inflation
in the Cape Town
metropolitan area
averaged 11.9%
during the first half
of 2016, according
to a Pam Golding
report, nearly
5% ahead of the
second-highest,
Durban
40% of international
buyers of South
African properties
are from the UK and
20% from Europe
Despite global economic uncertainty and falling oil prices, the residential property
markets in Cape Town and Dubai remain buoyant, attracting international buyers
Pockets of positivity
Dubai | South Africa
Mauritius | Seychelles