Find Property and Real Estate expertise in South Africa

Property markets in South Africa achieved an astounding level of growth for most of the 2000s. The Economist reported that house prices increased by 351% in the nine years leading to 2006. However, the market has been under pressure from significant inflation, the implementation of the National Credit Act and interest rate hikes. Although the National Credit Act protects borrowers by setting strict policy guidance to evaluate credit-worthiness, it is reported to have reduced the supply of mortgage loans. ABSA, a primary provider of mortgages, released figures for 2008 that state that even though house prices rose on average by 6.8%, in reality they fell by 3.84% because of inflation. South Africa places little restriction on foreign nationals who wish to acquire property. Rental market laws are pro-landlord, and rental yields in the country offer opportunities for investors.