Investing in commercial property in South Africa is one of the best ways to maximizing your money. Four-fold increase, government encouragement, and double-digit annual growth make real estate market of the country one of the best in the world.
Buying commercial property in South Africa is a good option to generate extra income. The favorable government policies, economic growth, and the position of the country as a top export destination provide perfect business and investment ambience. The minimum 15 percent return and the huge potential make the domestic real estate market a great place for investors.
Why To Invest
According to various market research reports, commercial real estate market in South Africa is one of the fastest growing in the world. The upward trend was visible even in the heyday of economic slowdown and the prices of commercial real estate in South Africa have gone up 400 percent in since 2000. The rising profile of the country as a major economic player and a robust export destination has created huge demand for commercial spaces for business entities. All these have been driving price and development new commercial and residential real estate properties.
Where To Invest
Numerous business parks, office suits, serviced business centers, shopping complexes, and malls being constructed in Pretoria, Johannesburg, Cape Town, London, and other important urban centers offer good investment opportunities thanks to the favorable policies of the government. You just need to sit back and relax while your property manager looks after the investment. You are assured of guaranteed return and capital growth.
What To Look For
Location, approval by concerned authorities, price, and assurance on returns are some of the key factors that you must look into while making investment in commercial real estate. No doubt the growth is visible everywhere, but you must do your homework and enquire about trends to strike a good deal. Look for projects approved for tax breaks. Again the difference in location substantially influences your buy-to-let and investment options. Present generation commercial projects in Pretoria, Johannesburg, and Centurion offer more lucrative returns than other parts of the country.
Tax Breaks
The Government of South Africa offers several tax breaks for development of commercial real estate in the country. The developers get up to 20 percent tax break on new projects and also on renovation of rental properties. All commercial property transactions are exempted from VAT, stamp duty, and inheritance tax. This has not only lowered the prices, but also make commercial properties in the country a hot chase by foreign investors and companies moving their offices to South Africa.
The robust economic growth, political stability, and government incentives are the three important factors that contribute to upsurge in South Africa commercial real estate in the past one decade. The lower exchange rate of Rand with major international currencies, such as US Dollar, Pound Sterling, Euro, is also contributing to make South Africa a popular location for investment and catch on property benefits.
