Over the last few years, the media has run countless stories about South Africans emigrating overseas and semigrating to the Western Cape. However, according to Roger Lotz, franchisee for the Rawson Properties Helderberg Group, these trends only show half of a much bigger picture.
“The reality is, we’re not just seeing people flocking out of the country and out of Gauteng,” he says. “We’re also seeing significant reverse emigration trends – South African expats returning to all parts of SA – as well as considerable numbers of foreign citizens choosing to make South Africa their home base.”
The biggest pull factors driving these “reverse” trends are affordability, opportunity and quality of life.
“I’ve spoken to a lot of returning expats and international buyers looking for local properties, and one of the most common benefits they mention about South Africa is its relative affordability,” he says. “The cost of living in places like the UK, Europe, Australia, the UAE and the US is extremely high – even when you’re earning in foreign currency. That has a massive impact on your quality of life and your ability to enjoy the first world benefits of these countries.”
Instead of settling for a small home and modest lifestyle in a first world country (where the grass is seldom actually greener), more and more people are choosing to put their international experience (and currency) to work in South Africa – despite the very visible challenges the country faces.
“Those dollars and pounds go a lot further in terms of property and lifestyle in South Africa, but no one is oblivious to the problems we have,” says Lotz. “The view just seems to be that most of these problems are not insurmountable. It’s actually really heartening to hear how much positivity and optimism there is out there for our country.”
In fact, Lotz says many consider South Africa a land of opportunity – and not just those coming from poorer countries.
“As a developing nation, and a gateway to Africa, there is great opportunity for savvy businesspeople and entrepreneurs to do some really exciting stuff here,” he says. “The international market is saturated in a lot of areas, but we still have extraordinary potential for growth.”
This growth is not limited to the Western Cape, either – despite the province’s widely publicised popularity.
“Gauteng still accounts for a third of our national GDP,” says Lotz. “When it comes to economic opportunities, it’s a major hub – and one a lot of people are excited to be a part of. There are plenty of locals and foreigners relocating up north. It’s definitely not just a mass exodus of one-way traffic as we’ve been led to believe.”
What does this mean for South Africa’s property market?
“Any boost in demand is great for the market, supporting healthy property price growth,” says Lotz, “but it’s even better when that demand is bringing fresh investment into our country with it. Every additional cent in circulation supports our economic growth and recovery, and helps to preserve the extraordinary lifestyle it’s possible to achieve here.”
