Global business focuses attention on Johannesburg residential market

Johannesburg is being increasingly seen as the business centre of Africa and business professionals from across the continent are establishing commercial interests and investing in residential property to use during their business trips to South Africa.

So says Barak Geffen, Executive Director of Sotheby's International Realty South Africa who says the trend has been emerging slowly and quietly for a number of years now, from among professionals in fields as diverse as IT and telecommunications to sugar cane.

"We've seen buyers from numerous African countries such as the DRC, Gabon, Senekal, Swaziland and Namibia, some of which have even bought properties in Johannesburg for between US$3- to US$5-million (approximately R21- to R35-million)."

Geffen says that his company has also seen a steady increase in the numbers of South Africans who have been operating successful business in the rest of Africa returning to buy property locally for investment purposes.

"Add to this the influx of multinational operations that are establishing bases in South Africa, and relocating their staff many of whom are buying property themselves for short-term investments during their stay here," says Geffen.

With this happening particularly within the Johannesburg area, these investments are further strengthening the citys rise as a financial power house on the African continent.

"We're also seeing a rise in foreigners purchasing investment properties outside of their own time zones buyers from the USA and China, for example, are showing huge interest.  In addition, there is ever-increasing interest from countries in the United Arab Emirates, particularly with the change of the political climate over the past few years in countries such as the USA and Europe."

With their own economies overheating, many countries abroad are looking towards other sound financial markets worldwide. "We are an investment grade developing country that is drawing other significant investments from around the world," says Geffen.