Rich South Africans are snatching up property in the Middle East – here’s why
Rich South Africans are buying up investment properties situated in the United Arab Emirates’ capital city for upwards of R10 million as prices have skyrocketed by over 50% since 2022 alone.
This is according to Seeff Property Group, who’ve noted a keen interest in investment properties in Dubai.
“South African property buyers are cashing in on the Dubai property boom. During a recent whirlwind visit to Durban, Seeff’s Dubai Office secured several sales and notable interest from South African property investors over the two-day visit,” the group said.
Nombasa Mawela, licensee for Seeff Dubai, added she was overwhelmed by the interest shown by South Africans wanting to invest in this booming property market.
Buyers were mostly entrepreneurs from various industries as well as experienced and upcoming property investors, she said. The sales were predominantly luxury apartments, priced upwards of R10 million, bought off-plan.
Mawela said the real attraction is the flexible interest-free payment plans offered over periods of 5 to 7 years by the developers rather than the buyers needing to mortgage the properties, which would attract interest.
The properties were all purchased for investment purposes. The market growth graphs projecting impressive ROIs over the past few months were a definite motivation. It showed the massive growth of almost 50% from 2022 in property prices which has created investment confidence, she added.
According to recent media reports in Bloomberg and Financial Times, the Dubai property market continues its booming pace, with property values continuing to rise at a record pace amid strong demand.
They report that many of the world’s richest individuals are currently turning to Dubai as a financial haven.
Mawela noted that the off-plan developments are particularly well suited to the South African market.
This is due to their flexible payment plans and higher possibilities of being reinvested in the market. Mawela gave an example of a recently sold two-bedroomed unit, which sold for AED 2.88 million (about R14 million).
The properties were purchased for investment purposes to capitalise on the strong short-term rental market, mostly through Airbnb and Bookings.Com, as well as the rising demand for long-term residential rentals in the city of Dubai.
The different types of visas which come with property investment, particularly the golden visa have also become a popular attraction for investment in property, Mawela added.
The reality of being able to have a standing Visa for up to 10 years and the ability to host your family has attracted even more potential investors. Another drawcard for these buyers is the ability to open an offshore personal and business bank account in Dubai.
She also said it is relatively easy and straightforward to purchase property, especially the off-plan developments, and there are a number of these available offering various properties, from apartments to luxury villas. Assistance is provided every step of the way for buyers and investors.
An example of what R10 million can buy you in Dubai is listed below.
Oceanz by Danube
- Starting Price: prices start at just under AED2 million (approx. ZAR10 million).
A New apartment complex in the sought-after Maritime City with panoramic sea views, Italian interiors and luxury furnishing by Tonino Lamborghini Casa. On hand are a range of 5-star amenities, including an infinity pool, cinema, gymnasium, doctors on call, dining and much more. Options range from studio and one-bed units to Presidential and Garden Suites.
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