Earlier this year, Lighthouse Properties reported that 43% of owners who sell their properties in Gauteng buy another property in another province – and of that percentile, 36% buy in Cape Town and the Western Cape.
This outmigration is expected to support Cape Town’s resilient property market, as skilled workers, entrepreneurs and large companies migrate to the metropolis to find work, set up businesses and relocate offices.
“With the outlook for tourism on the rise and positive data released by the Western Cape’s promotion and investment agency, Wesgro, Cape Town will lead the property sector’s recovery across all assets,” said Quintin Rossi, CEO of listed property group JSE Spear REIT. .
Rossi attributes this recovery largely to out-migration, as an increase in buyer activity has been noted by the residential property sector as people move from Gauteng and KwaZulu-Natal to the Western Cape.
Rossi said while the domestic and global economic outlook remains difficult to navigate, the city’s real estate sector is accelerating its recovery.
During the presentation to investors ahead of Spear’s close, Rossi highlighted that office, retail and industrial occupancy rates in Cape Town are showing a healthy rebound as the return-to-work trend continues and as companies begin to focus on growth and recovery.
Spear, which has 32 properties in its R4.6 billion specialist regional portfolio, posted close to 94% occupancy between March 2021 and the end of February 2022, with a portfolio made up 100% in the Western Cape.
Besides the obvious lure of the mother city, emigrants are said to seek safety and security, less pollution and a better quality of life, and South Africa has unique factors that support this trend. :
A recent commentary by First National Bank property strategist John Loos attributed unrest and looting in KwaZulu-Natal and other parts of South Africa in July last year as another significant factor for the relocation of businesses. Many people who were sitting on the fence have now accelerated their plans.
The Western Cape and Cape Town Municipal Districts have earned a reputation for being well managed and efficiently administered. Maintaining current infrastructure and rolling out future projects, such as current efforts to reduce dependency on Eskom, makes a strong investment case for the region.
It is the policy of the Western Cape government to ensure that the city and province have the infrastructure and technology necessary to support businesses and investment in the region.
The biggest international companies such as Johnson & Johnson, Microsoft and Reuters have set up facilities in Cape Town. In the aftermath, US retail giant Amazon will be the anchor tenant of the Cape Town-based R4.5 billion residential and commercial property development, which is expected to create 5,239 jobs in the construction phase alone.
South African tech companies based in the Western Cape continued to attract international investment, with fintech firm Clickatell announcing an additional R1.3 billion capital raise via the international investor market to further boost its growth ambitions. growth on the African continent.
The Western Cape has established itself not only as a leading international tourist destination, but as an economically viable investment case for technology companies, green energy companies as well as South African and foreign families looking to reinstall.
The result benefits the province’s residential, commercial, retail and industrial real estate sectors.
Read: Cape Town is trying to migrate more skilled workers