Brics summit ‘will raise awareness of SA properties’

Category The New Age - Business & Technology

Brics summit ‘will raise awareness of SA properties’
Bernard Sathekge

The fifth Brics Summit which officially kicks off in Durban tomorrow will raise awareness of the South African homes market, a property expert said.

Ronald Ennik, founder and CEO of Ennik Estates, a luxury homes marketer, said Brics could play a significant future role in raising the level of foreign interest in South African residential property.

Ennik said the recent increased flow of visitors to the country from fellow Brics member countries Brazil, Russia, India and China has already cranked up the awareness within that bloc of the investment opportunities on offer in South African residential property market.

“The awareness will intensify this week when Durban hosts the fifth Brics Summit, which is expected to be attended by around 5000 delegates including specially-invited heads of the AU.

“Given that delegates to high-level international indabas in the country and that the OR Tambo Airport is almost always the arrival and departure point of choice, the Brics Summit could indirectly widen the showcase on the top end homes market in Gauteng,” Ennik said.

Meanwhile, he believes the steadily increasing volume of day-to-day Brics country tourist arrivals in South Africa could have the same effect.

“At the latest count, there has been a 62.8% year-on-year increase in the number of Chinese nationals visiting South Africa. This is not surprising, given that South Africa is China’s largest trading partner in Africa.

“The comparative year-on-year increases in visitors from other Brics countries are Brazil at 51.7%, Russia 34.6% and India 18%,” he said.

According to Ennik, many of these arrivals come to the country on holiday or to attend international conventions, trade and sports events – a trend which has been growing steadily ever since South Africa hosted the 2010 soccer World Cup and established the country as Africa’s event capital.

He added that from a potential property investment point of view, the most significant Brics travellers are the executives who use Johannesburg, and Sandton in particular, as a base from which to visit and oversee corporate investment projects both in the country and sub-Saharan countries.

“They are starting to emerge as buyers and renters of upper-end real estate, which is potentially good for the market,” he said.

Author: Bernard Sathekge

Submitted 03 May 13 / Views 2892